A New York closing involves several financing transactions. Which listed transaction is the exception that is not subject to mortgage recording tax under New York law?
Correct Answer
C) An assumption of an existing recorded mortgage with no increase in principal
An assumption of an existing recorded mortgage with no increase in principal amount is generally not subject to additional mortgage recording tax in New York, since the tax was already paid when the original mortgage was recorded and no new debt is being created.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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