Here in New York, depending on what county you are in, there is an expensive tax applied to all mortgage loans. The percentage of the tax depends on the county but ranges from .8% in most counties to 1.8% in the 5 boroughs. So if you are borrowing $500,000 in Brooklyn, you pay a mortgage tax of $9000 on that loan. That is a lot of money to say the least.
In certain circumstances, you can avoid that tax by processing a New York mortgage assignment – CEMA. There are many factors that determine your eligibility for the CEMA and also some expenses associated with it’s processing.
The biggest factor is whether or not your current lender is willing to process New York mortgage assignment for you. Some lenders will only do it in house, meaning only if you refinance with them. Some lenders will process no matter where you take your new loan. Each individual lender also has their own fee schedule for the cost associated with the assignment. They may also designate a specific law firm who handles their CEMA’s.
The process can be a little tedious but in the right situation can save you thousands of dollars on your mortgage. Not every lender or loan officer is willing to process New York mortgage assignment or even inform you about them but it’s an important factor when looking at a refinance across New York including Long Island, Westchester, Queens or Brooklyn NY. Seek out a true mortgage professional and let them use their skill set and knowledge to deliver you the best mortgage loan in the market!
Remaining advised is the first step to making the right choices on your direction to determining for a home loan. Artisan Mortgage offers home loan trend up-dates every day that really help your increase your knowledge whether you are re-financing your home loan or evaluating home loan rates.
Any mortgage company can take your application and quote you a rate, but only the best can shake your hand at closing with confidence. Let us find the loan that is right for you.
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Comment by Alex, PB Mortgage Group
Great article here. Just shared it to all of my friends up in New York! If you know anyone in FL feel free to send them over! Thanks Jim!