New York's mortgage recording tax is approximately:
Question & Answer
Review the question and all answer choices
0.5% of the mortgage amount
Option A is incorrect because 0.5% is far below New York's actual mortgage recording tax rates. This misconception likely stems from confusing recording taxes with other fees or from rates in different states.
1% of the mortgage amount
Option B is incorrect because while 1% is closer to some New York counties' rates, it doesn't account for NYC's higher rates (up to 2.8%) and thus represents an incomplete understanding of the state's variable tax structure.
1.8% to 2.8% depending on location
No mortgage recording tax
Option D is incorrect because New York definitely imposes a mortgage recording tax. This misconception might arise from confusing recording taxes with transfer taxes, which are separate but related fees in real estate transactions.
Why is this correct?
Answer C is correct because New York State imposes a mortgage recording tax that varies by location, with rates ranging from 1.8% to 2.8%. NYC specifically has higher rates (1.8% for loans under $500k and 2.8% for loans above $500k) while other counties have lower rates, making this the only option that accurately reflects this geographic variation.
Continue Learning
Explore this topic in different formats
More Real Estate Financing Videos
Continue learning with related video lessons
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.