What is the standard Maryland state transfer tax rate applied to most residential real estate transactions?
Correct Answer
D) 0.50% of the consideration
Under Md. Code Ann., Tax-Prop. § 13-203, the standard Maryland state transfer tax rate is 0.5% (one-half of one percent) of the consideration paid for the property. This rate applies to most residential transactions unless a specific exemption or reduced rate applies.
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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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