Fill out the form and one of our experienced CPAs will get back to you shortly.
Refinancing a mortgage in New York City can help homeowners secure better loan terms, but it often comes with additional costs. One of these is the Mortgage Recording Tax (MRT), which can be significant. However, there are ways to reduce or avoid this tax under specific circumstances, such as using a Consolidation, Extension, and Modification Agreement (CEMA).
12+
Years Serving NYC
50
States Covered
5★
Rated on Yelp
150,000+
Returns Filed
Open
Evenings & Weekends
In most cases, refinancing a mortgage in NYC will trigger the Mortgage Recording Tax. This tax is calculated based on the amount of the new loan and ranges from 1.8% to 2.8% of the mortgage amount, depending on the loan size.
For example, refinancing a $500,000 mortgage could result in a tax liability of $9,000 to $14,000, adding to the overall cost of refinancing.
A CEMA (Consolidation, Extension, and Modification Agreement) can help reduce or eliminate the Mortgage Recording Tax during refinancing. This agreement allows homeowners to consolidate their existing mortgage with the new loan, avoiding the need to pay the tax on the original loan amount.
With a CEMA:
For example:
While a CEMA can provide significant savings, it’s not always available. The lender must agree to the arrangement, and additional legal and administrative fees may apply. These fees could offset some of the savings, so it’s essential to evaluate the cost-benefit of using a CEMA.
If you’re planning to refinance your mortgage in NYC, understanding how the Mortgage Recording Tax applies is crucial. A CEMA can be a valuable tool for reducing costs, but it requires lender approval and careful planning. Consult with a real estate attorney or financial advisor to explore whether a CEMA is right for your refinancing needs.
No cost to start
Fifteen minutes with a CPA who handles this every week. We will walk you through your options — no sales pitch, no obligation.
“George has prepared and maintained the corporate accounting and provided consultant services for my company for a number of years. He has always done an outstanding, professional and courteous job. I feel that his rates are very fair and he provides a great value for the cost.”
“Excellent service and very professional. George and his team have been handling my business taxes for years and I couldn't be happier with the results. They are always available to answer questions and provide expert advice.”
“I've been working with Dimov CPA for both personal and business taxes. Their attention to detail and knowledge of tax law has saved me thousands. Highly recommend to anyone looking for a reliable CPA in NYC.”
Keep reading
Filing and paying are two separate tests on two different numbers. You can be required to file the UBT and owe nothing at all. What each test measures.
The New York LLC filing fee is charged on gross income from last year, not on profit. A loss making LLC still pays it. What Form IT-204-LL asks for.
New York City businesses face several taxes, and which reach you depends on how you are organized, where you rent, and what you sell. Sorted in one table.
Ready when you are
A CPA will review your situation and give you a straight answer. No commitment, no jargon.
