Susan sells her residential condominium in New Haven, Connecticut for $960,000. The municipality imposes the maximum standard municipal conveyance tax of 0.25%. What is the total Connecticut conveyance tax (state plus municipal) that Susan owes at closing?
Correct Answer
B) $10,400
First, calculate the state conveyance tax: $800,000 x 0.75% = $6,000, and the remaining $160,000 x 1.25% = $2,000, for a state tax total of $8,000. Then calculate the municipal conveyance tax at 0.25% of the full $960,000 sale price: $960,000 x 0.0025 = $2,400. Total tax is $8,000 + $2,400 = $10,400, so the correct answer is B.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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