Posted on: 01st Dec, 2009 02:40 pm
what does cema stand for on my good faith estimate?
why am i being charged a higher rate for a two-family?
why am i being charged a higher rate for a two-family?
CEMA is a term used in our industry that helps people avoid paying county taxes again. You should not be charged more for a 2 family HOWEVER you can be charged more because it is a rental property and you are not occupying one of the units. Other factors such as score, loan amount, state and loan type (cash out) can and will affect your final rate and terms
If the loan is conventional, then the rate would be higher for a 2 family, as the Government Sponsored Entities (Fannie Mae/Freddie Mac) have a price adjustment for a two family.
Depending on your loan amount, you might want to pay that adjustment in points if it makes a big difference in the rate.
Depending on your loan amount, you might want to pay that adjustment in points if it makes a big difference in the rate.
cema stands for consolidation, extesnion and modification agreement. it applies to properties in new york. when you buy the property you pay a mortgage tax in new york, the amount of the tax varies by county. when you refinance, the tax is paid agian unless you go through the cema process to not have to pay the tax again. the cema process costs money and that fee to process the cema is what is on your good faith estimate.
fannie mae and freddie mac have a 1.00% (one point) loan level price adjustment for 2 and 3 and 4 familty properties. you either pay the one point or raise the rate to cover it.
fannie mae and freddie mac have a 1.00% (one point) loan level price adjustment for 2 and 3 and 4 familty properties. you either pay the one point or raise the rate to cover it.
I was denied a cema saving I don't understand the cema anaylsis. how do i calcualte it to try to see for myself??
I don't think you would get a calculator which will help you in doing the CEMA analysis.