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What is a cema mortgage

CEMA Loans Make Refinancing in New York Easier and Cost-Effective

For years, each time a client in New York decided to refinance their home, they would pay a New York state mortgage tax on the entire new loan amount.

But living in the “Empire State,” shouldn’t have to mean paying a lot of taxes to refinance YOUR empire.

So instead of paying thousands of dollars in taxes, clients can obtain a C onsolidation, E xtension and M odification A greement or CEMA loan.  Quicken loans is pleased to offer CEMA loans because clients only have to pay taxes on the amount of the new loan that is above and beyond their current unpaid principal balance, such as closing costs or cash out.

CEMA loans are only available on conventional, jumbo and FHA refinances.  VA loans are not available.

The CEMA loan can help to reduce the amount of money a borrower pays in NY state mortgage taxes.  Here’s an example:

  • Loan amount =


  • Financed closing costs = $8,000
  • Queens County tax rate = 2.05%

Without CEMA:

Loan amount of $300,000 x 2.05% tax rate = $6,150 total tax

Financed closing costs $8,000 x 2.05% = $164 total tax + CEMA fees*

*Keep in mind CEMA loans have some additional fees involved that could make it less advantageous.  Fees can range anywhere between a few hundred dollars to a few thousand dollars.  These fees typically cover CEMA assignment fees, closing fees and processing fees.  If the CEMA fees totaled $1,120 in the example above, the homeowner would clearly benefit from using a CEMA loan.

However, it’s important to note that CEMA loans may not always be a good fit, as tax rates and attorney fees vary, making it possible for a non-CEMA loan to be more cost-effective.  But most clients should find that a CEMA loan makes perfect sense.  So New York homeowners can start spreadin’ the news that CEMA is now available at Quicken Loans!

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