A Michigan home sells for $420,000. The seller is responsible for paying both the state real estate transfer tax and the county real estate transfer tax at closing. Using the Michigan state transfer tax rate of $7.50 per $1,000 and the county transfer tax rate of $1.10 per $1,000, what is the total transfer tax the seller must pay at closing?
Correct Answer
B) $3,612.00
Step 1: Calculate the state transfer tax. $420,000 ÷ $1,000 = 420 taxable units. 420 × $7.50 = $3,150.00. Step 2: Calculate the county transfer tax. 420 × $1.10 = $462.00. Step 3: Add both taxes. $3,150.00 + $462.00 = $3,612.00. The seller must pay a total Michigan transfer tax of $3,612.00.
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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.
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