How CEMA Loans Can Lower Your Closing Costs?

Whether you're refinancing or buying a high-value property in New York, you could be facing thousands in mortgage recording taxes alone. But here’s the good news - a CEMA loan (Consolidation, Extension, and Modification Agreement) can significantly reduce those costs, making it a smart move for eligible transactions in the Empire State.

• A CEMA loan can significantly reduce mortgage recording taxes.
• Ideal for refinancing or purchasing with an existing mortgage.
• Requires lender cooperation and legal documentation.
• Not exclusive to VA borrowers, it's available to a wide range of applicants.

Let’s sort through the confusion and show you exactly how CEMA loans work, who qualifies, and how to apply - without falling into compliance traps or surprise fees.

A CEMA loan is a unique type of mortgage transaction that is available only in New York. Instead of taking out a brand-new loan, a CEMA lets you transfer your existing mortgage balance to a new lender, reducing how much is taxed under the Mortgage Recording Tax (MRT).

• NY mortgage tax can cost 1.8% to 1.925% of your loan amount - on a $500K loan, that’s nearly $10,000.
• With CEMA, you only pay tax on new money (like cash-out or additional financing).

Pro Tip: CEMA works for both purchases (assignment CEMA) and refinances (refinance CEMA).

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This isn't a one-size-fits-all loan, but it’s more accessible than many think. Here’s who can benefit:

• You own property
• You’re refinancing or purchasing with an assigned mortgage.
• Your current lender agrees to the CEMA process.
• The loan type is Conventional, Jumbo, or FHA - no VA-specific limitation here.

• Some lenders may charge a CEMA processing fee.
• It requires legal coordination, so the timeline and paperwork may be slightly longer.

But don’t worry - we’ve got you covered with lenders who streamline this process.

reAlpha Mortgage specializes in simplifying complex loans like CEMA, making your refinance smoother, smarter, and more rewarding.

1. Apply for a new loan with a lender that supports CEMA.
2. The existing lender agrees to assign the outstanding mortgage.
3. An attorney drafts the CEMA agreement, consolidating the old and new loan amounts.
4. The new lender records only the new money, reducing your mortgage tax bill.

This could save you thousands with very little added complexity.

Let’s say you’re refinancing a $700,000 mortgage in Brooklyn. Without CEMA, you’d owe ~$13,475 in mortgage recording taxes.

Using CEMA? You’re only taxed on the new loan portion. If that’s $50,000, your tax drops to around $950.

That’s a $12,000+ savings - and that’s money back in your pocket.

Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.

When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.

The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.

See how much you could save:

• Check your eligibility
• Explore homes that fit your budget today.
• Your next move could come with thousands back at closing.

Estimate your savings → Rebate Calculator

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