A promissory note for $120,000 is executed in Florida. Ignoring any mortgage-recording tax and focusing only on the documentary stamp tax on the note, how much tax is due?
Correct Answer
A) $420
The note tax is $0.35 per $100 or fraction, with a $2,450 cap on the note. For $120,000, that produces $420.
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Related Topics & Key Terms
Key Terms:
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A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
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