Knowing your rights and what lenders are and are not allowed to do can help you a great deal if you’re attempting to refinance your New York home. Homeowners in New York are not required to pay the state mortgage recording tax all over again in certain circumstances.
States are allowed to charge a recording tax on a new mortgage debt, but not if the home is being refinanced. You might find yourself paying this tax again, though, if you get a new lender. If the existing lender doesn’t agree to transfer the mortgage to the new lender and recast the old mortgage in the new terms, you might find that you have to pay this tax all over again.
It’s a really good tool to consider the benefits of the assignment process, even though it requires a little bit of extra effort on your part. Both new and old lender representatives have to be present at the table to discuss the Consolidation, Extension and Modification Agreement. Find out from your existing lender whether they will or will not consider an assignment.
If you’re getting tax savings by refinancing, you will need to determine whether the legal costs that you’ll have to pay will outweigh those costs. If the tax savings are limited to a few thousand dollars, it’s not going to line up as well to go through the aggravation and effort associated with an assignment.
You can minimize your refinance costs simply by knowing whether your lender will be open to an assignment. Calculate the costs of moving forward before you begin, to ensure you’re aware of all possible costs and benefits.