New York Real Estate Closings Attorney

Manhattan Office
30 W. 47 St. #215
New York NY 11374
Tel.(877) LAW-NOW9
(877) 529-6699
Fax.(718) 206-1227
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We also have offices in:
(click for directions)

Jamaica, NY - Main Office
171-16 Hillside Ave, Jamaica, NY 11432
Tel: (718)206-1555
Fax.(718) 206-1227
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Rego Park, NY Office
98-14 Queens Blvd, Rego Park, NY 11374
Tel.(718) 897-1717
Fax.(718) 206-1227
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Fresh Meadows Office
185-19 Union Trpk
Fresh Meadows, NY 11366
TEL.(718) 454-8888
FAX. (718) 206-1227
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Brooklyn Office
1635 E. 19th St
Brooklyn, NY 11229
TEL.(718) 897-1717
FAX. (718) 206-1227
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To save on mortgage tax we utilize process known as a consolidation, extension and modification or CEMA. In New York state, the mortgage tax is calculated as a percentage of the amount borrowed and normally ranges from less than one (1%) percent to over two (2%) of the loan amount depending on what county you live in, and in New York City or surrounding boroughs, it is additionally dependent on how much you borrow.

Well, let us explore in general terms how the process of a CEMA works. First, what happens during a CEMA is that an existing mortgage gets assigned from an existing lender to your new lender. This assignment is necessary under New York law to avoid paying some or all of your mortgage tax a second time. Theoretically, this may sound simple, but in reality the process of consummating a CEMA takes more time than people often realize and costs more money than expected and also requires cooperation from several different sources.

In reality, when utilizing a CEMA, you are only paying mortgage tax on the difference between your remaining unpaid principal balance and the new loan amount. To understand what you are actual saving consider the following example: You live in New York City and have an existing mortgage in the amount of $100,000 on which mortgage tax was initially paid by you at a rate of 1.8%. You have been diligently making your monthly mortgage payments and your current unpaid principal balance on your mortgage is now $90,000.00. You notice that mortgage rates have declined and you want to refinance your home and even increase your mortgage loan amount to $125,000.00. In this scenario, you would only pay mortgage tax on the difference ($35,000.00) between the $125,000.00 and the $90,000.00 as opposed to paying mortgage tax on the entire $125,000.00.