Monday, September 26, 2011

Who’s giving you the best mortgage deal?

The New York Times suggests vetting the lender when you buy a home.
“BEFORE buying a house, borrowers will undoubtedly do a thorough check of the property, examining its structural soundness and the surrounding neighborhood, among other things; they will research the best type of loan, comparing interest rates, terms and fees. But not all borrowers do due diligence on their lenders.”
“Ferreting out good information is not that easy. For one thing, different kinds of lenders are held to different rules, licenses and disclosure requirements. Some states, like New York and New Jersey, require mortgage brokers to complete criminal background checks through the state police.”
So what to do?  According to industry experts they  
“suggest that borrowers focus more on the individual who would be their mortgage broker, loan officer or loan originator. Among the questions borrowers should be asking them: How long have they been in the field? How well or promptly do they answer questions? Do they want to know the borrower’s financial goals? A look at their work experience and background on their LinkedIn profile may also be helpful.”
What should you look for?

  • are good listeners, and helpful with personal-finance questions.
  • size might be one factor.
  • whether a blemish on a firm’s record, say a large number of foreclosures or a class-action lawsuit settled three years ago, will dissuade you from cultivating a helpful relationship.
  • governmental and quasi-governmental sites may be helpful.

A minefield? Maybe.  Read the full article to learn more.

For your next title order or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Stephen's Title Agency, LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-227-4724 - Fax 973-556-1628
E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Friday, September 23, 2011

New York mortgage tax - how can it be reduced

A client posed a question yesterday-

"I have a borrower who is trying to save money on a refinance in Manhattan, any ideas?"

"Sure," I said, "use a CEMA."

CEMA is shorthand for Consolidation, Extension and Modification Agreement. It helps to save mortgage tax because the original mortgage being paid-off is assigned to the new lender instead of being satisfied. The mortgage tax is paid only on the amount of the loan being given by the new lender. The two mortgages are "consolidated" into one by the CEMA.

The New York Times has an interesting article on the money saving aspects of a CEMA transaction. Read it here.


For your next title order or


if you have questions about what you see here, contact


Stephen M. Flatow, Esq.


Stephen's Title Agency, LLC


165 Passaic Avenue, Suite 101


Fairfield, NJ 07004


Tel 973-227-4724 - Fax 973-556-1628


E-mail Stephenstitle AT comcast.net - www.stephenstitle.com