It’s not everyday that you get a check for $157,000! It would have been $151,000 if we didn’t postpone closing for a week! Why? We were able to save $6000 in mortgage tax by doing a mortgage assignment and consolidation rather “paying” off the previous mortgage.
This little trick can not only be used on refinances of investment real estate but also purchases too! How? If the property you are buying has an existing mortgage on it you may be able to have that bank assign the mortgage to your bank who is offering the purchase money. This would then be assigned and consolidated with any new debt on the property.
The previous bank may charge an assignment fee but that may be negligible in comparison to what you would save in closing costs!
Matthew Drouin is a full time real estate investor and REALTOR with 12 years of acquisition, disposition, development and management experience in Rochester, NY.