New York State Mortgage Tax : New York Mortgage Tax

Confused with the New York state mortgage tax jargon? Baffled by your mortgage recording tax amounts in New York? Read on for information to help you figure your best mortgage tax options in the Empire State.

New York State Mortgage Tax

New York mortgage tax becomes due at the time of recording of a mortgage, or any other transaction that increases indebtedness secured by an existing mortgage. Irrespective of whether you apply for refinancing,debt consolidation, increasing or modifying an existing mortgage, you become liable to pay the predetermined amount of New York state mortgage tax. However, if you opt for refinancing your real estate loan at a higher amount, then you are required to pay tax only for the incremental amount of your loan and not the entire mortgage. New York mortgage tax is calculated considering a number of factors such as the type of property, taxable property value,tax rate, etc.and these factors will vary per county. Depending on the nature of your real estate transaction in New York, you may have to pay any of the following taxes - Real property transfer gains tax, Real estate transfer tax, Mortgage recording tax, etc. The final amount paid of New York mortgage tax will vary depending on your property type. Different tax rates apply depending on the tax classification that you fall under.

In New York, property is grouped under four tax classes for mortgage tax calculation purposes -

• Class 1 - Comprising one, two or three family homes
• Class 2 - Apartment buildings comprising three or more units (includes Cooperatives and Condominiums)
• Class 3 - Property of utility companies
• Class 4 - All other commercial and industry property

The Mortgage Tax Unit is responsible for collecting mortgage tax as per stipulations set forth by the State of New York. A portion of your tax amount goes to the individual town or city where your mortgage property is located while one-fourth of tax paid (general rate applicable) is due to the State of New York. The followinginformation is essential to calculate the amount of New York State mortgage tax due at the time of refinancing or registering your mortgage:

• Recorded information about previous mortgage (In the case of refinancing)
• Information about Tax-Paid loan value of the property (The property value for which you have paid tax)
• Extent of your real taxable property appreciation value
• Current increase in mortgage debt
• Present mortgage tax rate payable, calculated based on the new loan amount

For professional advice pertaining to your mortgage tax options it is advisable to consult with reputable mortgage lenders in order to receive expert advice regarding available options.

New York Mortgage Recording Tax

New York mortgage recording tax becomes due at the time of recording your mortgage in the Empire State.Both the mortgage lender and the borrower are entitled to pay a portion of this tax. The amount of New York state mortgage recording tax varies per county and is calculated as a predetermined percentage on your loan amount.

While recording your mortgage transaction in New York, you will be required to pay the following processing fees - Page fee, Handling fee, Notation fee, etc. The fee amount must be paid as check, cash or money order. You will also be required to submit the following information:

• Your name and address
• Name and address of your mortgage lender
• Date of mortgage
• Signature and the lender's signature
• Documents signed and acknowledged by a notary public
• Mortgage recording and endorsement page

You may claim any eligible exemptions on your NYS mortgage tax amount by submitting along with your mortgage documents, two affidavits copies (original and one copy) mentioning the type of deduction you require. These affidavits should be signed and notarized.