CEMA Loans: Everything You Need To Know

Mar 9, 2024

4-minute read

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There are some loan options that only apply to where you live. For example, if you live in New York, you may have heard of CEMA loans. This is a great mortgage option for those looking to refinance their mortgage loan.

Let’s define CEMA loans, talk about what makes them special and go over how to determine whether this type of loan is the right option for you.

What Is CEMA?

A Consolidation, Extension and Modification Agreement (CEMA) is a loan option available to New Yorkers that can drastically reduce the cost to refinance a mortgage. CEMA loans allow borrowers to pay mortgage recording taxes on only the difference between their current principal balance and their new loan amount.

In New York, taxes are collected for recording any new mortgage with the state during the home buying process. New York City, Yonkers and several counties apply a local tax on recording a mortgage, along with the state tax. In NYC, this tax can be 1.8% – 1.925% of the mortgage.

If you’re refinancing in New York, you could avoid paying mortgage recording tax and save yourself a large sum of money.

See What You Qualify For