Mortgages / Refinance

Should you refinance?

Compare the mortgage you have with a new one: what changes each month, what the new loan costs to close in New York, and how long it takes to pay back. A CEMA can cut the mortgage recording tax to the new money only.

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Example figures A made-up loan and rate. Replace them with yours; the rate is an example, not a quote.

Refinancing cuts your monthly principal and interest by $796; counting interest and $7,390 of closing costs, it pays back in interest saved after 10 months.

Monthly principal and interest$5,541Now $6,338; $796 less a month.

Closing costs$7,390$7,390 to bring to closing

Pays back, counting interest10 monthsWhen interest saved has covered the closing costs. On the monthly payment alone: 10 months.

Over the years you'll keep it$51,061 savedInterest plus closing costs over 84 months, against keeping your loan. Principal repaid isn't a cost.

A rate-and-term refinance: the new loan pays off the old one, with no cash out.

The new term is longer than the years left on your loan, so part of the monthly saving comes from stretching the repayments, not from the lower rate.

Closing costs for the new loan

Cost	Estimate	Notes
Lender fees and points	$3,700	Our estimate: origination, underwriting and appraisal
Mortgage recording tax	$0	On the new money only: 0 dollars above your balance
Bank attorney	$1,500	The lender's own counsel
Lender's title policy	$1,440	Our estimate
Recording and filing fees	$750	Our estimate

The CEMA saves $17,325 in mortgage recording tax. Both lenders' and attorneys' fees for a CEMA apply on top; ask for a quote.

Estimates from model.js, the same as cash to buy: title, attorney and lender fees vary, and your lender's Loan Estimate gives the real figures. Information, not advice.

What to know

Mortgage recording tax and a CEMA. A new mortgage is taxed when it's recorded. If the current lender assigns your mortgage to the new lender and it's consolidated with any new money, the state taxes the supplemental mortgage only on the new or further debt. NY Tax Law §255: supplemental mortgages taxed only on new debt · revision of 22 Sep 2014, checked 22 Oct 2026 The state's rules count a new lender by assignment as a supplemental mortgage. NYS DTF TSB-A-01(4)R, quoting 20 NYCRR 645.1(a)(5): a new lender by assignment is a supplemental mortgage · 23 May 2001, checked 22 Oct 2026 Rates: NYS DTF memo TSB-M-05(4)R: mortgage recording tax rates · checked 21 Oct 2026
Co-ops. A co-op share loan isn't a recorded mortgage, so there's no mortgage recording tax and no CEMA. NYC Department of Finance: mortgage recording tax report (co-ops) · checked 21 Oct 2026
Cash out. For loans Fannie Mae buys, a limited cash-out refinance pays off the existing first mortgage and the closing costs, with cash back of no more than the greater of 1% of the new loan or $2,000. Fannie Mae Selling Guide B2-1.3-02: limited cash-out refinance · section dated 8 Oct 2025, checked 22 Oct 2026
"No-cost" refinances. Lenders cover the costs either with a higher rate and a credit, or by adding them to the loan; a higher rate costs more over time, and a bigger loan raises the payment. CFPB: is there such a thing as a no-cost refinance? · reviewed 3 Apr 2024, checked 22 Oct 2026 Points work the other way: you pay upfront for a lower rate. CFPB: lender credits and points · checked 21 Oct 2026