CEMA is synonymous with Consolidation, Extension, And Modification Agreement. CEMA loans can only be granted in New York State. A CEMA loan is an agreement between the existing lender and the new lender to consolidate two or more loans into a new consolidated loan. This is often used by existing homeowners who want to refinance their home or by potential buyers who want to save mortgage rights. CEMA loans help save money for those trying to refinance their homes, as customers only have to pay taxes on the amount of the new loan, which goes beyond their current outstanding capital balance, also known as “PUB,” such as fees. B closing or payments. Instead of a traditional mortgage refinancing that cancels an old mortgage and accepts another, a New York consolidation, renewal and modification contract (“CEMA”) allows a lender and borrower to consolidate all the debt and mortgages a borrower may have, including a new loan and mortgage, into a consolidated credit commitment and pay only mortgage tax on the new credit commitment. A CEMA uses New York`s Tax Act No. 255 (McKinney 2008) which allows for additional mortgages and provides that CEMA is synonymous with consolidation, extension and modification agreement – and it is essentially a way to refinance, but avoid paying an expensive mortgage acquisition tax. Step 3: Remove Line 2 from Line 1 and it`s your gross tax savings. (z.B 1,575.00 – 25.70 – 1549.30) One way or another, you should contact an experienced CEMA expert to advise you on the likely costs and whether CEMA is in your best interest.

If your CEMA is not approved, Section E will remain unchanged, but the section B cema fee will be waived, which will reduce your completion fee. Step 4: Subtract all CEMA commissions (each bank determines its own fees) and registration fees incurred by CEMA, giving you the total savings of CEMA. (z.B. 1549.30 – 750.00 – 799.30 Stored) In addition to mortgage tax, we also include the CEMA fixed fee in Section B, which represents CEMA`s performance costs. You will see that the fees do not reflect the average amount ($2,000) because a large portion is paid directly to your lender – by you.