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Purchase CEMA Savings Calculator for NYC

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Buyer Mortgage Recording Tax - Without Purchase CEMA
Buyer Mortgage Recording Tax - With Purchase CEMA
Total Mortgage Recording Tax
Buyer Pays
Lender Pays
Mortgage Recording Tax Savings
Seller NYS Transfer Tax - Without Purchase CEMA
Seller NYS Transfer Tax - With Purchase CEMA
NYS Transfer Tax Savings
Total Purchase CEMA Savings
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Glossary

Purchase CEMA

A Purchase CEMA is a strategy for reducing your closing costs when buying or selling a condo or house in New York City. A Purchase CEMA is also known as a Purchase Consolidation Extension Modification Agreement.

The Purchase CEMA itself is the act of assigning a seller’s existing mortgage to the buyer. The CEMA reduces the amount of new loan money which must be originated, and this reduces two closing costs: the buyer’s Mortgage Recording Tax bill and the seller’s New York State Transfer Tax bill. Because a Purchase CEMA requires the permission of the seller and the buyer saves more than the seller, most sellers will use this leverage to propose an equal split of the total savings between the buyer and seller.

Seller Savings with a Purchase CEMA

Under a Purchase CEMA, the seller does not have to pay the New York State Transfer Tax on any existing loan amount which is assigned to the purchaser. The NY State Transfer Tax is currently 0.4% for most residential sales below $3 million, and 0.65% for sales of $3 million or more.

Buyer Savings with a Purchase CEMA

Under a Purchase CEMA, the buyer does not have to pay the Mortgage Recording Tax on any existing loan amount which is assigned from the seller to the buyer. The Mortgage Recording Tax for most residential transactions is currently 2.05% for loans under $500k and 2.175% for loans of $500k or more, however most lenders cover 0.25% of the tax (excluding commercial transactions).

Mortgage Recording Tax

The NYC Mortgage Recording Tax is a buyer closing cost which is 2.05% for loans below $500k and 2.175% for loans of $500k or more.  Most lenders cover 0.25% of the tax (excluding commercial transactions). The amount of the Mortgage Recording Tax is based on the amount of new loan being underwritten. This means your MRT bill will continue to go down as you increase the size of your down payment. You can reduce the amount of the Mortgage Recording Tax by negotiating a Purchase CEMA with the seller.

NYS Transfer Tax

The New York State Transfer Tax is 0.4% for sales below $3 million and 0.65% for sales of $3 million or more. The higher rate of 0.65% kicks-in at a lower threshold of $2 million for commercial transactions and residential properties with 4 or more units. Prior to the New York Tax Law amendments in 2019, the NYS Transfer Tax was previously a fixed 0.4% regardless of the sale price. The New York State Transfer Tax is authorized by New York Consolidated Laws, Tax Law – TAX § 1402.

The New York State Transfer Tax is 0.4% for sales below $3 million and 0.65% for sales of $3 million or more. The higher rate of 0.65% kicks-in at a lower threshold of $2 million for commercial transactions and residential properties with 4 or more units. Prior to the New York Tax Law amendments in 2019, the NYS Transfer Tax was previously a fixed 0.4% regardless of the sale price. The New York State Transfer Tax is authorized by New York Consolidated Laws, Tax Law – TAX § 1402.
Disclaimer: Hauseit’s Purchase CEMA Savings Calculator provides estimates that are meant to be illustrative and used for reference purposes only. Please consult the closing statement your real estate attorney will provide you for your exact closing costs. Hauseit and its affiliates do not provide tax, legal, financial or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, financial or accounting advice. You should consult your own tax, legal, financial and accounting advisors before engaging in any transaction. The services marketed on Hauseit.com are provided by licensed real estate brokers and other third party professional service providers. Hauseit LLC is not a licensed real estate broker nor a member of any multiple listing service (MLS).

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