In Broward County, a seller is selling their home for $425,000. The documentary stamp tax on the deed is $3.00 per $1,000, and the intangible tax on the new mortgage of $340,000 is $2.00 per $1,000. If the seller pays the deed stamps and the buyer pays the intangible tax, what is the total documentary stamp cost for this transaction?
Correct Answer
C) $1,955
Correct: Documentary stamp on deed: ($425,000 ÷ $1,000) × $3.00 = $1,275. Intangible tax on mortgage: ($340,000 ÷ $1,000) × $2.00 = $680. Total documentary stamp costs: $1,275 + $680 = $1,955. Why not A: This only calculates one of the taxes. Why not B: This only includes the deed stamps. Why not D: This uses an incorrect calculation method.
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Related Concepts
IRV stands for Income, Rate, and Value. It represents the relationship between Net Operating Income (I), Capitalization Rate (R), and Property Value (V).
Loan qualification math involves calculating the debt-to-income ratios that lenders use to determine whether a borrower qualifies for a mortgage. The two primary ratios are the front-end (housing expense) ratio and the back-end (total debt) ratio.
Monthly interest is the portion of the total annual interest that is paid or accrued each month.
More Closing Procedures Calculations Questions
The buyer gets a $280,000 mortgage in Florida. The intangible tax is:
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- → Property taxes of $2,400 for the year have been paid by the seller. The closing is on September 15th (day 258 of 365). How much does the buyer owe the seller for the unused portion of prepaid taxes?
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Previous Question
A buyer is purchasing a $350,000 home in Miami-Dade County with a 20% down payment. The lender requires an origination fee of 1% and discount points of 0.5%. The buyer will also pay for a survey ($450), home inspection ($500), and attorney fees ($800). What is the total amount of lender-related fees the buyer will pay at closing?
Next Question
In Florida real estate transactions, all of the following are typically paid by the buyer at closing EXCEPT: