Refinancing your mortgage in New York
A straight read on when it makes sense, what it costs, and how to do the math before you call a lender. Drop your current loan into our comparison tool to see the numbers for your situation.
The New York picture
New York has the most expensive mortgage closing costs in the country, by a wide margin. The mortgage recording tax is the culprit. A borrower in Manhattan refinancing a $750,000 loan without a CEMA will write a check for more than $14,000 in state and city tax alone, before a single lender fee or title charge. That one fact changes the entire refinance decision framework for every New York homeowner.
The market also splits hard between New York City and the rest of the state. NYC is one of the few major American metros where the primary housing unit is an apartment rather than a detached house, and co-op loans work differently from condo or single-family mortgages. Upstate New York, from Albany through Buffalo, has median prices in the $250,000 to $350,000 range, which means the tax bill is a smaller dollar amount but still applies. Wherever you are in the state, the CEMA question is the first thing to ask your lender before you lock a rate.
New York mortgage recording tax runs $1.00 per $100 on loans of $500,000 and above outside NYC, and up to $1.925 per $100 inside the five boroughs. A CEMA lets you pay that tax only on the new money borrowed, saving $10,000 to $15,000 on a typical large loan. Attorney representation at closing is required and costs $1,200 to $2,500. Effective property tax rates run about 1.4 percent statewide.
When refinancing makes sense in New York
The core test is the same everywhere: closing costs divided by monthly savings equals break-even months. In New York, the closing cost number is dramatically higher than national norms if you skip the CEMA. With a CEMA, New York refinancing costs come down to something closer to the national average; without one, you are extending break-even by a year or more. Always model both scenarios before making a decision.
The signals worth acting on in New York:
- Rate drop of 1 percent or more without CEMA. The higher closing cost floor in New York means smaller rate cuts do not pencil out as quickly. A full point of improvement on a $500,000 loan saves roughly $310 a month, which clears a $12,000 to $16,000 closing cost bill in three and a half to four years.
- CEMA eligibility on a large balance. If your current lender will cooperate with a CEMA and your balance is above $400,000, the mortgage recording tax savings alone can justify the refinance even with a modest rate improvement. Run the full math with actual CEMA fees included.
- ARM resetting. Many New York borrowers in the luxury segment used adjustable-rate jumbo loans when fixed rates were low. If your 5/1 or 7/1 ARM is entering its adjustment period and the new rate exceeds current 30-year fixed rates, locking in makes sense regardless of the tax hit.
- FHA to conventional. FHA loans carry permanent mortgage insurance when put down less than 10 percent. At $500,000 that is roughly $230 a month in MIP. Refinancing to conventional at 20 percent LTV removes it permanently, which is often worth paying the recording tax.
On a rate-and-term refinance in New York, the attorney-state requirement means every closing has two sets of legal fees. Budget $1,200 to $2,500 for your own attorney. The lender covers theirs. If you pursue a CEMA, both attorneys will negotiate the assignment and consolidation package, which adds roughly 30 to 45 extra days to the timeline. A standard NY refinance without CEMA takes 30 to 45 days; a CEMA refi takes 60 to 90 days.
What is actually happening in the New York market
New York City in 2026 has stabilized after a difficult 2023. The condo and co-op market in Manhattan saw price declines of 10 to 15 percent between mid-2022 and late 2023 as rates rose and the investor class stepped back. Prices have recovered roughly half of that decline. Brooklyn and Queens held up better because of stronger owner-occupant demand and lower price points relative to Manhattan.
The outer boroughs and the northern suburbs, Westchester, Nassau, and Rockland counties, remain tight on inventory. Many homeowners in those markets locked sub-3.5 percent loans in 2020 and 2021 and have little reason to sell. Days on market is low and bidding wars are still common for well-priced single-family homes in the $600,000 to $900,000 range.
Upstate, the picture is simpler and more favorable for buyers. Albany, Buffalo, and Rochester have seen modest appreciation over the last two years, driven by remote workers and affordability seekers moving out of the metro. Prices in those markets are at a level where most refinances involve loan balances under $300,000, making the CEMA decision less urgent and the overall closing cost math more forgiving.
One New York-specific risk worth watching: property tax reassessments. New York assessment cycles vary by municipality, and a reassessment year can push the assessed value, and therefore the escrow payment on a new loan, significantly higher. Check the latest assessment and any pending grievance filing before locking a rate. The difference between an old assessment and a new one can materially change your true monthly payment comparison.
A worked example
Take a homeowner in White Plains, Westchester County, with a $580,000 conventional 30-year loan at 7.25 percent originated in late 2023. Their principal and interest payment is roughly $3,957 a month. Today they could refinance to a 6.375 percent 30-year, dropping that payment by about $347 a month.
| Item | Current | After refinance |
|---|---|---|
| Loan balance | $580,000 | $580,000 |
| Rate | 7.25% | 6.375% |
| Principal & interest | $3,957 | $3,610 |
| Monthly savings | — | $347 |
Now for the New York cost difference. Without a CEMA, closing costs on this Westchester refinance look like this: $5,800 in mortgage recording tax ($1.00 per $100 on $580,000), $3,000 in lender and origination fees, $1,800 in title insurance, $1,800 in attorney fees for both sides (borrower $1,500, lender separate), $600 appraisal, $500 recording fees, and roughly $4,500 in prepaid taxes and insurance. The real out-of-pocket sunk cost, excluding prepaids, is roughly $13,500.
Break-even without CEMA: $13,500 divided by $347 a month equals 39 months, about three years and three months.
With a CEMA, the mortgage recording tax on this loan drops dramatically. Assume the existing balance is $572,000 and the new loan amount is the same $580,000. Only the $8,000 in new money is taxed, saving roughly $5,720 in recording tax. The CEMA has its own fees, roughly $1,500 for assignment and additional attorney time, so net savings are about $4,200. Now the sunk cost is closer to $9,300.
Break-even with CEMA: $9,300 divided by $347 a month equals 27 months, about two years and three months. A plan to stay in the home for three-plus years makes the refinance pay off cleanly with or without the CEMA, but the CEMA scenario is the right default for any New York borrower refinancing a loan above $400,000.
Run the same math with your own loan in the New York mortgage comparison tool.
Frequently asked questions
What is a CEMA and how does it save money on a New York refinance?
CEMA stands for Consolidation, Extension, and Modification Agreement. In New York, the mortgage recording tax applies to new mortgages, not to the modification of existing ones. A CEMA lets you assign your current mortgage to the new lender and consolidate it with the new money borrowed, so you only pay mortgage recording tax on the new money, not the entire loan balance. On a $600,000 refinance where you are replacing a $575,000 existing loan, you pay the tax on $25,000 instead of $600,000. The process takes longer and has its own assignment and recording fees, but on a large loan the savings routinely run $10,000 to $15,000. Not every lender offers CEMAs; ask before you lock.
What is the New York mortgage recording tax?
New York State charges a mortgage recording tax on the loan amount at closing. The basic rate is $0.50 per $100 for loans under $500,000 and $1.00 per $100 for loans of $500,000 and above on property outside New York City. Within the five boroughs the total is higher: the city adds its own layer, bringing the combined rate to $1.80 per $100 on loans below $500,000 and $1.925 per $100 on loans of $500,000 and above. On a $700,000 NYC refinance without a CEMA, the mortgage recording tax alone is roughly $13,475. This is the single biggest cost difference between New York and almost every other state.
Does the mansion tax apply to a cash-out refinance?
No. The mansion tax is a buyer-paid transfer tax on residential sales of $1 million or more. It applies to purchases, not refinances or equity extractions. A cash-out refinance does not trigger the mansion tax regardless of your loan size or home value. The mansion tax is tiered: 1 percent on sales from $1M to $1.999M, rising in steps to 3.9 percent on sales above $25M. You may encounter it when you eventually sell, but it has nothing to do with your refinance decision today.
Do I need an attorney to refinance in New York?
Yes. New York is an attorney-state for real estate closings. Both the borrower and the lender are represented by attorneys at the table. The lender's attorney is covered by the lender; you hire your own. Borrower attorney fees for a refinance run $1,200 to $2,500 depending on the firm and complexity. This is a fixed cost that adds to your break-even calculation. You cannot waive it; most title companies will not issue a policy without borrower counsel present.
What is SONYMA and who qualifies?
The State of New York Mortgage Agency offers below-market fixed-rate loans for first-time homebuyers and qualifying low-to-moderate income borrowers purchasing primary residences. The main programs are the Low Interest Rate Program and the Achieving the Dream program for lower-income buyers, with rates typically 0.5 to 1.0 percent below prevailing market rates. SONYMA loans have income limits and purchase price limits that vary by county and household size. For refinancing, SONYMA runs a program for existing SONYMA borrowers. If you bought with a SONYMA loan, contact the agency before assuming you need to go to a conventional lender.
How different is New York City from upstate for refinancing?
Dramatically different. The five boroughs carry a median condo and co-op price well above $700,000 and detached single-family homes are rare. Westchester, Nassau, and Suffolk counties run $600,000 to $800,000 for single-family homes. Upstate markets, Albany, Buffalo, Rochester, Syracuse, run $200,000 to $350,000 with much lower loan sizes. The CEMA decision, the attorney cost, and the mortgage recording tax math all apply statewide, but the dollar amounts are far larger in the metro. A Buffalo homeowner refinancing a $220,000 loan faces a $2,200 recording tax at most; a Manhattan borrower on $800,000 faces over $15,000.
What is the STAR rebate and does it affect my refinance?
STAR, the School Tax Relief program, is a New York State property tax exemption for owner-occupied primary residences. Basic STAR is available to all qualifying homeowners; Enhanced STAR is for seniors 65 and over meeting income requirements. The rebate is applied to your school tax bill, not your mortgage. Refinancing has zero effect on your STAR eligibility. If you have not enrolled in Enhanced STAR and you qualify, register through the Tax Department; it can save $1,500 to $3,000 a year in property taxes independent of anything happening with your mortgage.