CEMA, also known as Consolidation Extension and Modification Agreement is a loan option available to New York residents that can excessively reduce the cost of refinancing their mortgage.
In CEMA loans the borrowers have to pay the mortgage recording tax on only the unpaid mortgage balance (The difference between the current mortgage balance and the new loan amount).
New York State collects recording tax to record a new mortgage unless the property is a cooperative unit.
Along with the state tax, New York City, Yonkers, and various counties impose additional local taxes to record a mortgage.
In New York City, this mortgage recording tax is 1.8% if your loan amount is less than $500,000 and 1.925% if the mortgage balance is $500,000 and more.
If you are refinancing your mortgage in New York, you can save a good amount of money with the help of a Consolidation Extension and Modification Agreement loan.