Refinancing in New York: What the Data Tells Homeowners in 2024
New York’s refinance market is shaped by some of the highest loan amounts in the nation, a unique and costly mortgage recording tax, and a legal framework that requires attorney involvement at closing. For homeowners considering a refinance, understanding how these factors interact is essential to making an informed decision. Here is what the latest data reveals about refinancing in the Empire State.
Overview of Refinancing Activity in New York
In 2023, New York homeowners completed 17,979 refinance originations, with an average loan amount of $748,420. That average loan size is notable: it is nearly double the national average of $410,429, reflecting the state’s high property values, particularly in the New York City metro area. Despite a relatively low homeownership rate of 54.31% (well below the national average), the state still accounts for a meaningful share of national refinance volume.
However, the denial rate for refinance applications in New York stands at 28.95%, slightly above the national average of 27.87%. This may reflect the higher loan amounts involved, stricter underwriting for jumbo loans, and the complexity of New York’s closing process. Homeowners considering a refinance should be prepared for thorough documentation requirements.
How New York Compares to National Averages
New York stands out in several key ways:
- Loan size: The average refinance loan of $748,420 is 82% higher than the national average of $410,429, indicating that many New York refinances involve jumbo or high-balance loans.
- Denial rate: At 28.95%, New York’s denial rate is slightly above the 27.87% national average, though the gap is modest.
- Homeownership rate: At 54.31%, New York has one of the lowest homeownership rates in the country, meaning the refinance-eligible population is proportionally smaller.
- Median home value: The statewide median of $403,000 is somewhat misleading, as New York City and its suburbs push average loan amounts far higher than this figure suggests.
Loan Type Breakdown: What It Signals
New York’s refinance market is overwhelmingly conventional, with 95% of refinance originations falling into the conventional loan category. FHA loans account for just 5%, while VA loans make up less than 1%. This distribution is consistent with the state’s high loan amounts: FHA and VA loan limits, while generous in some counties, may not cover the larger balances typical in New York. Homeowners with jumbo loans will generally find their refinance options concentrated among conventional and portfolio lenders.
Top Lenders Active in New York
Based on HMDA filing volume, the most active mortgage lenders in New York include:
- JPMorgan Chase Bank, National Association – 28,738 filings
- Citizens Bank, National Association – 21,307 filings
- Rocket Mortgage, LLC – 13,383 filings
- United Wholesale Mortgage, LLC – 12,864 filings
- Manufacturers and Traders Trust Company (M&T Bank) – 11,229 filings
The mix of large national banks, online lenders, and regional institutions like M&T Bank gives New York homeowners a range of options. When refinancing, it is generally wise to obtain quotes from multiple lenders, as rates and fees can vary significantly. Our guide to top refinance lenders can help you compare.
Current Rate Environment
As of the latest data, the current 30-year fixed refinance rate sits at 6.38%, while the 15-year fixed rate is 5.75%. For homeowners who locked in rates during 2020 or 2021 when rates were near historic lows, today’s rates may not offer savings. However, for those who purchased or last refinanced when rates were at or above 7%, current rates could represent a meaningful opportunity to reduce monthly payments or shorten their loan term.
Given New York’s high average loan amounts, even a modest rate reduction can translate into substantial dollar savings. Use our refinance calculator to see what today’s rates could mean for your situation.
State Regulations and Closing Costs
New York’s refinance process comes with several state-specific requirements that significantly affect closing costs:
- Attorney required: Yes. New York requires an attorney for both the borrower and the lender at closing. This is one of a handful of states with this requirement, and it adds to overall closing costs, typically several thousand dollars combined.
- Mortgage recording tax: This is one of the most consequential costs for New York refinancers. In New York City, the tax is generally 1.8% of the mortgage amount (2.05% for loans over $500,000). Outside NYC, the rate is typically 1.05%. On a $748,420 loan in NYC, the mortgage recording tax alone could exceed $15,000.
- CEMA (Consolidation, Extension, and Modification Agreement): Refinancing with the same lender, or a lender willing to participate in a CEMA, can save borrowers thousands of dollars. A CEMA allows the borrower to pay the mortgage recording tax only on the “new money” (the difference between the new loan and the existing balance), rather than on the entire loan amount. However, CEMAs require lender cooperation and typically add processing time.
- Right of rescission: Under federal law, New York homeowners have 3 business days after signing refinance documents to cancel the transaction without penalty.
Because of these costs, the break-even calculation for a New York refinance is especially important. Our break-even calculator can help you determine how long it will take for monthly savings to recoup your closing costs.
State Programs for New York Homeowners
The State of New York Mortgage Agency (SONYMA) primarily serves first-time and low-to-moderate-income homebuyers through programs like Achieving the Dream. While SONYMA’s focus is on purchase mortgages, homeowners who originally financed through a SONYMA program may be eligible to refinance through their existing program. It is worth contacting SONYMA directly to explore whether refinance options are available for your specific loan.
Consumer Complaints to Consider
New York’s large population and high loan volumes mean the state generates a notable number of mortgage-related consumer complaints. Homeowners should consider checking the CFPB’s complaint database for any lender they are evaluating. Common issues reported nationally include problems during the payment process, trouble with loan modifications, and closing-related disputes. Doing your research before selecting a lender can help you avoid potential frustrations.
Tips for New York Homeowners Considering Refinancing
Given New York’s unique cost structure, here are practical considerations:
- Prioritize a CEMA if possible. The mortgage recording tax is one of the highest costs in any New York refinance. If your current lender will participate in a CEMA, the savings can be dramatic.
- Factor in attorney fees. Budget for both borrower and lender attorney costs when calculating your total closing expenses.
- Shop multiple lenders. With loan amounts averaging $748,420, even a small rate difference can mean significant savings over time.
- Run the numbers carefully. Higher closing costs in New York mean the break-even point may be longer than in other states.
A Worked Example
Consider a New York homeowner with a $748,420 loan currently at 7.2%. Refinancing to today’s 30-year rate of 6.38% would reduce the monthly payment from approximately $5,084 to $4,672, saving about $412 per month. If the homeowner is outside NYC and completes a standard refinance (without a CEMA), the mortgage recording tax alone at 1.05% would be roughly $7,859, plus attorney fees and other closing costs that could bring total costs to approximately $12,000 or more. At $412 in monthly savings, the break-even point would be around 29 months.
However, if the homeowner qualifies for a CEMA and owes $600,000 on the existing mortgage, the recording tax would apply only to the $148,420 in new money, reducing that tax to roughly $1,558 instead of $7,859, a savings of over $6,000. This would drop the break-even period to approximately 15 months.
Use our refinance calculator and break-even calculator to run your own numbers based on your specific loan balance, rate, and estimated closing costs.
The Bottom Line
New York’s refinance market involves larger-than-average loans, higher-than-average closing costs, and a legal process that requires attorney participation. The mortgage recording tax is a major factor that can make or break the financial case for refinancing. Homeowners who take the time to understand CEMA options, shop across multiple lenders, and carefully calculate their break-even timeline will be best positioned to determine whether refinancing makes sense for their situation.