Estimate the mortgage recording tax, borrower/lender split, and potential CEMA savings.
Co-op purchases are exempt (no mortgage on real property). 1-2 family homes get a small ($30) reduction not shown here. A CEMA requires lender cooperation and may carry bank/legal fees that offset part of the savings. Estimate only.
The mortgage recording tax is paid when a mortgage is recorded with the NYC City Register. It applies to all new mortgages on real property (condos, houses, commercial buildings) but not co-ops (which use stock pledges instead of mortgages).
Mortgage of $400,000:
Mortgage of $1,200,000:
A CEMA allows a buyer to "assume" the seller existing mortgage for the purpose of reducing the mortgage recording tax. The tax is only paid on the difference between the new mortgage amount and the old mortgage being assigned. For example:
Co-op purchases are exempt from mortgage recording tax because co-op financing involves a pledge of shares and proprietary lease, not a mortgage on real property. This is a significant cost advantage for co-op buyers, saving 1.8-1.925% of the loan amount.
The mortgage recording tax also applies to refinancing. If you refinance with the same lender, a CEMA can minimize the tax. If you switch lenders, a CEMA may still be possible but requires more coordination between the old and new lenders.
NYC mortgage recording tax is 1.8% for mortgages under $500,000 and 1.925% for mortgages of $500,000 or more. The borrower pays the majority (1.0-1.125%) with the lender paying 0.8%.
You cannot avoid it entirely for real property, but you can reduce it significantly through a CEMA (Consolidation, Extension, and Modification Agreement). Co-op purchases are exempt from mortgage recording tax.
This is an estimate. Look up any NYC address for the actual assessed value, tax class, zoning, and FAR — free, no account needed.