NYC CEMA savings calculator
What is a CEMA and what does it save?
Every time a mortgage is recorded in New York, there’s a tax on it — 1.8%–1.925% of the whole loan. A CEMA (Consolidation, Extension and Modification Agreement) is paperwork that lets your new loan take over an existing one instead of starting from scratch, so the tax only applies to the new money — the part you’re borrowing beyond what was already owed. On typical NYC loan sizes that saves thousands. Lenders charge roughly $2,000–$3,000 to do it, which this calculator subtracts for you.
How much does a CEMA actually save? A worked example
Refinancing a $300,000 balance into a $450,000 loan in Brooklyn: without a CEMA, the recording tax hits the whole new loan — 1.8% of $450,000 = $8,100. With a CEMA, only the $150,000 of new money is taxed: $2,700. After ~$2,500 of CEMA fees you still keep about $2,900 — and the bigger the existing balance, the bigger the win: refinance a $700,000 balance into an $800,000 loan and the tax falls from $15,400 to $1,925 on the new money, keeping five figures even after fees.
When a CEMA is worth it
- Refinancing: almost always ask — without a CEMA you pay the full recording tax again on the whole new loan.
- Buying (purchase CEMA): needs the seller’s cooperation and their lender’s consent, takes 30–90 days, and sellers often ask to split the savings — still usually worth it on loans over ~$400,000.
- Co-ops: not applicable — co-op loans pay no mortgage recording tax at all.
Background: the full mortgage recording tax guide.