Have a Tax Question? Ask a Tax Expert
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.
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