Answers (9)
Best Answer
- Chris Corica, "Chris Corica"
- Contributions:1097
You will have to pay the mortgage tax unless you 1) have a CEMA done which all lenders won't do OR 2) the property type is a co-op. The fee banks are charging for a CEMA varies from $650 - $1100, the closing attorney will charge a fee as well and the recording fee will be higer due to the additional paperwork. As Joe mentioned they usually delay the process which can cause you to need a longer rate lock period. The loan amount will determine if a CEMA is right for you. Your tax rate is 1% of the loan amount with .25% paid for by the lender. When figuring out how much mortgage tax you will actually pay, use .75% as your rate. Hope this helps.
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- John Paunan, "John Paunan"
- Contributions:1145
Ok, I thought things were rough in Illinois, but this mortgage tax/CEMA thing sounds like a ridiculous system. I can usually discern the thinking behind most tax systems, balancing incentives with revenue generation, but this mortgage tax is just goofy and convoluted.
- Norm D Plume, "Coolidge or Chaos"
- Contributions:2335
If i read this correctly he's going through his present lender. It seems they'd do a CEMA on their own loans.
Correct about not all lenders will assign the mortgage to another lender for the CEMA; I work for one that will not assign.
Correct about not all lenders will assign the mortgage to another lender for the CEMA; I work for one that will not assign.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3806
Matt;
How much is the loan amount. It may not be worth it to do. Attoneys are involved and they are going to charge what they charge no matter what the loan amount is. The last couple that I have done have ranged around $1000 and it is no an overnight thing. They can take a few weeks to do and force you either to take an extended lock period or have to float your rate for a little bit until further along in the process.
How much is the loan amount. It may not be worth it to do. Attoneys are involved and they are going to charge what they charge no matter what the loan amount is. The last couple that I have done have ranged around $1000 and it is no an overnight thing. They can take a few weeks to do and force you either to take an extended lock period or have to float your rate for a little bit until further along in the process.
- Matt129
- Contributions:3
Yes, thanks Norm. The property is actually in Delaware County, where the tax is 1%.
- Norm D Plume, "Coolidge or Chaos"
- Contributions:2335
Otsego County mortgage tax is 50 cents per $100 (0.5%)
- Matt129
- Contributions:3
Thanks for your response. I'm going to get in touch with the Bank to make sure they do a CEMA for me.
- newmildew
- Contributions:30
My understanding and experience has been that you would have to pay it unless you were to do a CEMA.
Without the CEMA you would have to pay the full 1% on the full new loan amount.
With the CEMA you would only pay the 1% tax on any amount above and beyond your original loan amount.
In the event that your new loan amount were to be equal or lesser than the original, you would only be paying the cost of the CEMA.
I"m not a lender so I do not know if anything has changed since the last time I refinanced my NY property but that is how it was explained to me a few years back.
Without the CEMA you would have to pay the full 1% on the full new loan amount.
With the CEMA you would only pay the 1% tax on any amount above and beyond your original loan amount.
In the event that your new loan amount were to be equal or lesser than the original, you would only be paying the cost of the CEMA.
I"m not a lender so I do not know if anything has changed since the last time I refinanced my NY property but that is how it was explained to me a few years back.
Mortgage tax in NY on a refinance?
I'm looking to refinance an existing mortgage with same lender without "cashing out". I've received conflicting information regarding the "mortgage tax" charged by the county. On one hand, I'm told that I won't have to pay this 1% tax as long as I'm not adding "new money" to the mortgage. On the other hand, I'm being told that I will have to pay this tax unless I do a CEMA? Please clarify.
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