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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15342
Experience:  15years with H & R Block. Divisional leader, Instructor
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I am trying to verify whether or not the transfer tax on my

Customer Question

I am trying to verify whether or not the transfer tax on my cema refinance can be waived by the lender since they hold my current mortgage. It is my primary residence located in NYC. I am not borrowing any additional money, closing costs will come out of pocket, so I know there is no state mortgage tax but I thought the transfer tax was only if I change banks. Is that correct?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


CEMA, which most major lenders offer commonly for refinances allows you to assign the old mortgage and consolidate and amend it with a new mortgage for refinances . Using this you pay the tax on the difference between the current balance of the outstanding mortgage (old mortgage) and the new mortgage if you do not use the same lender.

If the payoff lender and new lender are the same, recording an assignment may not be necessary.

Homeowners aren’t required to pay the tax again when they refinance unless their new loan is larger than the outstanding debt on the previous loan, if that is the case they will be taxed on the difference.

My understanding is the same. Unless you have a larger loan and change lenders there is no transfer and no tax to pay.

Expert:  Robin D. replied 1 year ago.

If my answer addressed your question please rate below or above (let me know if you have difficulty as I believe the system changed), if you need more information reply below.