A borrower in Buffalo, New York is obtaining a second mortgage (home equity loan) of $50,000 while keeping their existing first mortgage of $200,000 in place. What is the mortgage recording tax obligation for this transaction?
Correct Answer
C) Tax is due on $50,000 (the second mortgage amount only)
New York mortgage recording tax applies to each mortgage individually when recorded. The second mortgage of $50,000 will trigger mortgage recording tax calculated on that amount only, since the first mortgage was already recorded and taxed previously.
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