Is CEMA worth it?
Now that you know what CEMA in New York is, it’s time to decide if this type of loan is right for you. Each type of loan has advantages and disadvantages. Here’s what you should consider before going ahead with a CEMA loan.
Benefits of a CEMA loan
Home ownership is expensive and owning real estate in New York State is very expensive. This is especially true in New York. So it makes sense that one of the most attractive benefits of a CEMA loan is the avoidance of the additional mortgage registration tax.
It is possible to save thousands of dollars upfront by choosing a CEMA loan over a traditional mortgage refinance. Plus, you can potentially take advantage of a lower interest rate and lower closing costs with a CEMA loan.
Disadvantages of a CEMA loan
Although a CEMA loan saves you money in many cases, it is not necessarily the fastest process. New York State, and any previous lender, must have special approval in order for mortgage and title transfers to be processed according to CEMA regulations, allowing you to pay taxes only on new money from the transaction rather than the principal balance. .
This means that CEMA refinances are going to require a little more patience than your typical refinance. Closing your loan can take 60 to 90 days. However, they will keep you informed throughout the process.
If for some reason you really need your loan closed quickly, you can consider other types of refinancing. Just be aware that you might pay additional taxes in exchange for that speed.