Understanding the Advantages of CEMA: A Buyer's and Seller's Guide

by Cristina Callegari Kanellopoulos

When you are obtaining a mortgage in New York State the buyer of that home typically pays mortgage tax on the whole amount of the mortgage that they obtain. The mortgage tax in New York State is usually the largest amount a buyer pays in closing costs. This tax can easily account for 40% of the closing costs paid when purchasing a home. The mortgage tax rate in the 5 boroughs of New York City is generally between 1.8 to 2.55%! This accounts for thousands of dollars in closing costs that the buyer of a home can avoid.

The Advantage of CEMA to Buyers:
The buyer can avoid this tax in part, or in whole by obtaining an assignment of mortgage from the seller of the property. The savings is dependant upon the amount of the seller's existing lien. This assignment of mortgage must be approved by both the sellers mortgage holder and the buyers new mortgage company.

The Advantage of CEMA to Sellers:
The seller of the home also benefits from the assignment. In most cases the seller will avoid paying the New York State transfer tax they are obligated to pay when selling a home. The New York State transfer tax rate is $4 per $1,000 of selling price. If the seller chooses to assign the mortgage on their home, and the lenders allow this assignment, the seller can save thousands just for signing the authorization.

In Memorium: Norma B. Casassola

In Loving Memory of
Norma B. Casassola
August 10, 1941 to June 19, 2009

God saw you were getting tired,
and a cure was not to be,
so he put his arms around you
and whispered, "Come to me."

With tearful eyes we watched you,
and saw you pass away.
Although we loved you dearly,
We could not make you stay.

A golden heart stopped beating,
hard working hands at rest.
God broke our hearts to prove to us,
He only takes the best.

Finding a New York Apartment that Allows Dogs

by Cristina Callegari Kanellopoulos

I am often asked by fellow dog owners why it is so difficult to find a rental apartment in New York that will allow dogs. The truth of the matter is simple - Money.

Facts:

• Homeowners insurance premiums increase if the landlord allows dogs, especially large-breed dogs, or breeds deemed "dangerous" by the Insurance underwriters. Their thinking is these breeds are more likely to bite someone, and force a lawsuit on the homeowner, thus resulting in a homeowners claim.
• Co-ops and Condos can not afford to allow pets as a general policy, not only because of the increased overall insurance costs, but because it will increase property maintenance costs as well. They claim that their experience has shown them that not all pet owners are responsible at properly curbing their dogs. Additionally, the Co-op and Condo boards fear that if a badly-trained dog lives in the building the barking will disturb the neighbors. Therefore, decreasing the overall property value. As such Co-op and Condo boards generally have blanket policies of No Dogs Allowed.
• Also Landlords and Co-op/Condo Boards alike fear that poorly trained dogs will wreck the apartment, by urinating in the apartment, and public halls, and by chewing on baseboard moldings, etc.

There is hope in sight though. As small breed dogs have become more and more fashionable, landlords and Co-op/Condo Boards recognize that they need to cater to us in the dog loving community. And, many buildings that were previously not dog-friendly, have changed their rules to allow dogs below 20 pounds with board approval.

Unfortunately, for those with large breed dogs, or, more than one dog - it will be extremely difficult to find an apartment that will accomodate you and your pets.

If you need help finding an apartment in Northeastern Queens, or Western Nassau that allows dogs call me at 917.921.5397.

Housing Market Offers Opportunities, Glimmers of Hope

by Cristina Callegari Kanellopoulos

Buying opportunities abound for value-savvy home shoppers in select markets across the nation, where prices have fallen to 2003 levels. While home prices are still declining on a year over year basis, they are falling at the slowest rate in five months, which indicates a degree of stabilization compared to recent months.

Attractive prices, coupled with strong affordability and mortgage rates below 5%, translate to more buying power for homebuyers. Buoyed by the $8,000 federal tax incentive, first-time buyers represented the majority of transactions closed last month. Their activity is expected to remain high and reduce the glut of homes on the market.

According to Charles McMillan, "Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment. For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today's market are unique."

Another positive factor is the return of the jumbo loan. For nearly a year, it has been almost impossible for buyers to find financing for homes selling for more than $417,000. Bank of America recently began offering a 30-year fixed rate jumbo at less than 6 percent. Other banks are starting to follow suit.

Home sales and other consumer spending data combined with big earnings at some banks indicate that the U.S. economy is on the road to a gradual recovery this year. "The economy is still very weak, but there are some encouraging signs that support cautious optimism," said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta.

Welcome to the Cristina Callegari Kanellopoulos Blog

Welcome to my new blog. Please check back often as I will be posting regular updates.

Sincerely,
Cristina Callegari Kanellopoulos