How a CEMA Can Save You Thousands in Mortgage Taxes

How a CEMA Can Save You Thousands in Mortgage Taxes

What is a CEMA?

In New York State, refinancing a mortgage or purchasing a home triggers a mortgage tax. New York homeowners can reduce their tax liability with a Consolidation, Extension and Modification Agreement (“CEMA”). A CEMA consolidates the old, outstanding, mortgage debt and the new debt so you only pay taxes on the difference between the two loan amounts or what is called the “new money”.

When you enter into a CEMA with a lender, you agree to combine or consolidate the