What is mortgage refinancing and how can it benefit homeowners?

Mortgage refinancing is the process of replacing your current home loan with a new one, usually to secure better terms. Homeowners often refinance to lower their interest rate, reduce monthly payments, or switch from an adjustable-rate mortgage to a fixed-rate one. In some cases, refinancing is used to tap into home equity through a cash-out refinance. This can provide funds for home repairs, education expenses, or consolidating high-interest debt. Refinancing can save you thousands over time, but it’s important to evaluate closing costs, your credit score, and how long you plan to stay in the home.

What is a CEMA and why is it important in New York?

A CEMA, or Consolidation, Extension, and Modification Agreement, is a refinancing tool available in New York that allows borrowers to avoid paying the full mortgage recording tax again. Instead of paying tax on the entire new loan amount, you only pay on the difference between the original and new loan if any. This can result in significant savings, especially in high-value transactions. CEMAs are particularly beneficial for borrowers refinancing with the same lender or within New York State. However, they can involve extra paperwork and coordination, which is why legal guidance is recommended.

How does a cash-out refinance differ from a traditional refinance?

A cash-out refinance allows you to borrow more than your current mortgage balance and receive the difference in cash. This option is typically used to access equity for large expenses like home improvements, education costs, or debt consolidation. In contrast, a traditional refinance only replaces your old loan with a new one for the same amount, usually to secure better terms. While cash-out refinances provide liquidity, they can come with higher interest rates and increased loan balances. It's essential to compare options and understand the long-term impact on your finances.

What are the typical costs associated with refinancing a mortgage?

Refinancing a mortgage typically involves closing costs that range from 2% to 6% of the loan amount. These costs may include lender fees, title searches, appraisals, and escrow charges. In New York, closing costs tend to be on the higher end, averaging around 2.1% of the loan amount. Some lenders offer “no-closing-cost” refinances, but these usually result in higher interest rates or rolled-in fees. Homeowners should evaluate these costs against their potential savings to determine if refinancing makes financial sense.

Is it necessary to get a new deed when refinancing a home?

No, refinancing a mortgage does not require a new deed because the ownership of the property doesn’t change. The deed, which shows who owns the property, stays in your name throughout the process. What changes is your loan—either the terms, the lender, or the loan amount. While the deed remains untouched, the mortgage agreement and promissory note will be updated to reflect the new loan terms. Despite no deed change, refinancing still involves significant legal and financial paperwork, making it wise to review all documents carefully.

What are some risks homeowners face when refinancing without legal advice?

Homeowners who refinance without legal support risk missing hidden fees, accepting unfavorable terms, or falling for misleading loan offers. Fine print can contain clauses about prepayment penalties, balloon payments, or added fees that could cost thousands. Without professional review, it’s easy to misunderstand legal documents or overlook requirements specific to condos or co-ops. A real estate attorney can help identify potential pitfalls and ensure that your new loan aligns with your financial goals. Legal support adds a layer of protection during a complex financial transaction.

What is the role of a New York real estate attorney in the mortgage refinancing process?

A New York real estate attorney acts as your legal advocate throughout the refinancing process. They review all documentation to ensure accuracy and compliance with local laws, and they explain the legal and financial implications of the terms you're agreeing to. Attorneys also coordinate with banks, title companies, and other parties to manage logistics like payoff letters and closing schedules. Their goal is to make sure you’re protected from unnecessary costs or legal complications. With their guidance, homeowners can navigate refinancing with more confidence and clarity.

Why is mortgage recording tax a significant factor in New York refinances?

Mortgage recording tax in New York can add a considerable cost to refinancing, particularly in high-value transactions. The tax is based on the loan amount and can range from hundreds to thousands of dollars. However, through a CEMA, borrowers can often avoid paying tax on the entire refinanced amount, reducing or eliminating this expense. That’s why refinancing in New York requires a strategic approach that weighs not just interest rates but also local tax implications. Legal counsel can help identify if a CEMA is possible and walk you through the steps to make it happen.

How can Sishodia PLLC help homeowners with refinancing or CEMA agreements?

At Sishodia PLLC, we assist New York homeowners with all aspects of refinancing, including traditional refinances and CEMA agreements. Our legal team reviews your loan documents, flags costly clauses, and explains all terms in plain language. We work to help you avoid unnecessary taxes, protect your interests at closing, and ensure a smooth transaction from start to finish. For CEMA refinances, we handle the legal paperwork required to qualify for the tax benefit. Our goal is to help you make confident, informed financial decisions that align with your long-term goals.

How can I contact Sishodia PLLC for help with refinancing my mortgage?

You can contact Sishodia PLLC by calling (833) 616-4646 to schedule a consultation with one of our New York real estate attorneys. Whether you're considering a refinance, a CEMA, or simply want clarity on your mortgage terms, our team is ready to assist. We offer personalized legal guidance tailored to your situation and help ensure your rights and finances are protected. You can also reach out through our website to book an appointment or request more information. At Sishodia PLLC, we’re here to help you navigate your refinancing options with confidence.

Last updated on September 8, 2025

Do You Need a New York Real Estate Attorney When Refinancing a Mortgage?

Rates are ticking up, but you still have a chance to get a refinance or a CEMA (Consolidation, Extension, and Modification Agreement) at a fair rate. A refinance can cut your monthly payment and add up to thousands in yearly savings. With a CEMA, you can roll your current loan into a new one and often keep from paying the mortgage recording tax again, which is a big deal in New York.

You’ve probably seen nonstop ads telling you to refinance. Some offers are great. Others don’t fit your goals or come with fine print that bites later. If you want clear advice on a traditional refinance or a CEMA, consult with a New York real estate attorney at Sishodia PLLC. Our team can look at your numbers, flag fees and traps, and help you choose the path that protects your money, including avoiding mortgage recording tax when possible. For personalized guidance tailored to your specific situation, contact Sishodia PLLC at (833) 616-4646.

What Is Mortgage Refinancing and When Does It Make Sense?

When you refinance your mortgage, you take out a new loan to pay off your existing one. Same house, new terms. Your new loan pays off the old one, and your payments will start on the new terms. People refinance to save money, change their payoff timeline, or tap home equity for other goals.

Refinancing can make sense if one or more of these apply to you:

You can lock in a lower interest rate than you have now. A smaller rate often means a lower monthly payment and less total interest over time.
You want a shorter term. Moving from 30 years to 15 years can raise the monthly payment but cut years of interest.
You need to access equity. A cash-out refinance lets you borrow against your home’s value for repairs, education, or consolidating higher-rate debt.
You want to switch from an adjustable rate to a fixed rate for stable payments.

Before you refinance, look at closing costs, your credit, your home’s appraised value, and how long you plan to stay in the home. That is how long it takes for monthly savings to cover the upfront costs. If you plan to sell soon, the numbers may not work.

A New York real estate attorney can help you compare loan terms, review the note and mortgage, flag junk fees, and coordinate title, payoff, and recording. Your attorney can also explain condo or co op requirements, spot prepayment penalties, and keep the closing on track. You get clear answers and a refinance that fits your goals.

Do You Need a New York Real Estate Attorney When Refinancing a Mortgage?

In New York, you do not have to hire a real estate attorney to refinance your mortgage. Still, it is usually a smart move. Refinancing comes with lots of moving parts and plenty of places to slip up.

Mortgage refinancing involves detailed documentation and legal requirements that can be overwhelming without legal guidance. A New York real estate attorney can dig into the paperwork and the rules so you do not have to. Our team can explain the terms in plain English and how they affect your payment, interest, fees, and timeline. At closing, you will face a stack of documents, major financial commitments, and a lien on your home. Having someone in your corner keeps things steady.

A real estate attorney focuses on your interests only. We can review every page, protect your rights, and help you make clear choices. Additionally, an attorney can assist in negotiating better terms and spot problems that could cost you later.

So no, it is not required, but it is a practical choice. You sign knowing exactly what you are agreeing to and why it works for you today and for the years ahead.

New York Real Estate Attorney

Natalia A. Sishodia, Esq., LL.M.

Natalia A. Sishodia is a highly skilled New York City attorney known for delivering tailored legal strategies in real estate, business, elder law, estate planning, and taxation. Fluent in English and Russian, she has advised clients from over a dozen countries, including Russia, Switzerland, Japan, Canada, and the UK, guiding both domestic and international clients through legal matters in New York. Trusted by high-net-worth individuals, celebrities, businesses, and major mortgage lenders, Ms. Sishodia is particularly recognized for her work in high-end real estate transactions, covering everything from condo and co-op purchases to 1031 exchanges. Her careful preparation and negotiation skills have earned her a reputation for facilitating smooth, “stress-free” closings.

Beyond real estate, Ms. Sishodia’s private client practice focuses on multijurisdictional wealth management, cross-border tax strategies, and legacy planning for affluent families. She also brings compassion and attentiveness to elder law and estate planning, helping clients secure their futures with wills, trusts, and strategies for digital assets like cryptocurrency. Committed to giving back, she offers pro bono legal services to underserved communities and actively supports charitable causes, including her work with Travelogion for brain cancer survivors. Her career is marked by professional excellence, community service, and a dedication to helping clients make the law work in their favor.

Three Reasons to Hire a New York Real Estate Attorney When Refinancing a Mortgage

1. Homeowners Often Fall Victim to Scams

Promising a low-interest rate is one of the many tools lenders use to entice homeowners to make a quick decision to refinance; however, advertised interest rates rarely apply to the typical homeowner seeking to refinance a mortgage. Reading the fine print, which can be difficult for even the most cautious homeowner, is crucial to avoid falling victim to scams. A lawyer can help ensure a refinancing offer is legitimate.

2. A Lawyer Ensures Accuracy and Understanding of All Documentation

A New York real estate attorney will take all steps to ensure legal documents pertaining to mortgage refinancing are accurate and in accordance with all applicable local, state, and federal laws. Rather than attempting to understand legal documents yourself, you should enlist the help of a qualified attorney who can clearly explain what the documents mean in an easily digestible format. A lawyer can help you avoid the unnecessary stress and anxiety that’s often associated with the refinancing process.

3. A Lawyer Acts as a Liaison and Helps to Ease the Refinancing Process

Your attorney can guide you through the process and correspond with your old bank, new bank, and the title company. This means they can order payoff letters from your old bank to pay off existing mortgages and loans, prepare you for the upcoming closing, which includes a review of the title report and title commitment, and represent you at closing.

Refinancing Type / Factor	Description / Benefit	Typical Cost or Approximate Outcome
Rate-and-Term Refinance	Replace existing mortgage with a new one (new rate, new term) without taking cash out	Helps lower monthly payments or shorten term
Cash-Out Refinance	Tap into home equity by borrowing more than your current mortgage	Access funds for repairs, education, or debt consolidation
No-Closing-Cost Refinance	Avoid paying upfront fees by adding costs into the loan or accepting a higher rate	Costs are covered later but result in higher long-term cost
Closing Costs (general range)	Sum of lender fees, appraisal, title, escrow, etc.	Typically 2%–6% of loan amount (e.g. $3,000–$9,000 on a $150k loan)
Average National Closing Cost	Broad snapshot of costs across the U.S.	About $2,400 (0.72% of loan amount); higher in states like NY (~2.1%)
Interest Rate Considerations	Comparing refinance vs. original mortgage rates	30-year refinance ~7.24%; 15-year ~6.18% (July 2025 averages)

Do You Get a New Deed When You Refinance?

When you decide to refinance your property, it involves obtaining a new loan under different terms. This process does not require changing the ownership of the property; therefore, the deed to your property remains unchanged. Refinancing is essentially about replacing your current mortgage with a new one, possibly to benefit from lower interest rates, different loan terms, or to consolidate debt.

It’s important to understand that the deed, which is the legal document that proves ownership, remains with you as the owner. The only change is in the terms and possibly the lender of your mortgage. This can be a useful financial move if you are looking to reduce your monthly payments, shorten your loan period, or tap into the equity of your home for large expenses.

Remember that while the deed stays the same, refinancing might come with various fees such as application fees, appraisal fees, and closing costs. It’s wise to weigh these costs against the potential benefits of the new loan terms to make a well-informed decision that aligns with your financial goals. Always consider consulting with a real estate attorney to discuss your specific situation and the best options available to you. Contact Sishodia PLLC today to schedule a consultation.

Attorney for Mortgage

Purchasing a home is often the most significant financial investment one makes in their lifetime. However, the mortgage process in New York presents many potential hurdles, which can lead to costly errors or disagreements. That’s why the legal help of a mortgage attorney in New York is invaluable. These professionals possess extensive experience in mortgages and are well-equipped to handle any related issues that may arise.

The primary role of a mortgage attorney is to ensure transparency throughout the mortgage process. They are well-versed in loan terms and remain vigilant for any signs of predatory lending or discrimination. A mortgage attorney at your side is a professional who can explain your rights and address any concerns or questions you have regarding your loan or mortgage terms.

A skilled NYC mortgage attorney can review your home purchase contract and assist with negotiations. They will help analyze loan documents, ensuring that the terms and conditions are fair and align with your expectations. If any issues arise from your mortgage, a mortgage attorney can file a claim on your behalf and represent you in any legal proceedings that may follow.

If you require assistance with your mortgage, our team of real estate lawyers at Sishodia PLLC in New York is here to help. We can provide the guidance you need to make informed decisions, resolve disputes, and ensure that your rights are protected throughout the mortgage process. Schedule a consultation today by calling (833) 616-4646.

Refinancing Your Mortgage? Consult with a New York Real Estate Attorney First.

With the help of a New York real estate attorney, homeowners can make decisions based on facts and data, not simply emotions. To find out how an attorney can help you, contact Sishodia PLLC today online or by calling 833-616-4646.

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