A property in New York City is purchased with a mortgage loan of $400,000 secured by a 1-to-3-family residential dwelling. Calculate the total combined New York State and New York City mortgage recording tax (MRT) owed by the borrower, ignoring the lender's 0.25% portion. (Use: NY State basic + additional = 0.50% + 0.25% = 0.75%; NYC tax = 1.00% for mortgages under $500,000 on 1-3 family homes; borrower receives the standard $30 state exemption on 1-2 family homes.)
Correct Answer
A) $6,970
On a $400,000 mortgage under $500,000 secured by a 1-to-3-family residence, the combined NYS + NYC MRT rate (borrower's share, excluding the lender's 0.25%) is 1.75%. $400,000 × 1.75% = $7,000, less the $30 state-portion exemption granted on 1-2 family homes = $6,970.
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