For the average American, the gold market can be quite confusing. This is primarily due to the fact that some businesses are stretching the boundaries of what proper gold investment is and consists of. Markets such as gold coin trading have led to speculative and misleading gold marketing. Its for this reason that the US Money Reserve was founded by a group of gold market veterans. They seek to provide clarity and outstanding customer service to individuals that are looking into including gold in their investment portfolio. Consisting of over 100 employees including numismatic experts, research professionals, investment professionals, and gold specialists this organization is a good place to start your search into gold investing.

My advice: invest your savings into something, whether it be gold, stocks, etc, that will allow you to retire earlier and enjoy your beautiful home.

A CEMA mortgage works by taking the old mortgage (the existing mortgage sometimes called the old money, and using it towards the calculation of the total loan amount and the difference between the two (the new money). So for a total loan amount of $100,000, and an existing mortgage you $80,000, the new money would be $20,000. The recording tax costs are then calculated against $20,000, rather than the $100,000 total loan amount. You can see that this would result in significant cost savings for the borrower.

When considering whether a NY CEMA is right for you, its important to weight the costs of the process (legal doc fees, lender fees, etc) against the savings associated with the CEMA mortgage. If your savings outweigh your costs, its a no brainer. You might consider a CEMA Refinance, which has its own procedures and documentation.

Let’s say we have current mortgage holder that is able to offer CEMA products (not all lenders are accredited through the state and capable of offering CEMA mortgages). The process generally follows a work-flow, dictated by the documents required by the lender and the state.

1.  The legacy mortgage must be issued by either a new lender, or the existing lender. If it is the former, the original mortgage must be assumed by the new lender which requires special documents and legal processes.

2.  The final consolidated amount is calculated by looking at the unpaid portion of the principal balance on the old mortgage, and comparing it against the new loan amount.

3.  The original lender signs over the original not to the new lender. This requires obvious legal documentation by both parties.

4.  The CEMA form (Consolidation Extension Modification Agreement) are prepared by the new lender’s attorneys or legal department.

5.  The new mortgage is issued, and recording tax costs are calculated against the gap rather than the original mortgage amount.

The CEMA refinance process can take a few weeks, depending upon the speed at which legal documentation is assembled. As the new lender typically receives its payment (in the form of fees taxes onto your mortgage), it is in their best interest to close quickly and handle the matter in an efficient and effective manner.

• It stands for a Consolidation Extension and Modification

Why would you do a CEMA Mortgage?

• Helps to alleviate the total amount of your mortgage tax (only in NY)

What steps are required?

• Borrowers must pay fees to the lender in order to start the process.

When is the right time to perform a CEMA?

• When the point arises when you need to save substantial money.

How much can be saved in the process?

• You can save on your taxes (so this would be dependent upon your tax rate in the area in which you live. Based upon your credit score, you can save some on the principal unpaid balance. You can also save some in future refinance fees.

When should I apply for the CEMA?

• As early as possible. You might do it immediately after an appraisal is completed.

We hope that these questions and answers help you begin to inform yourself about the process of a CEMA loan modification. Remember that every person’s circumstances are different so each person will save a different amount of money during the process. Doing a CEMA mortgage can help you save quite a bit of money and help you in difficult situations, when you might be considering watch brokers or other methods to get quick money for your valuables.