State Mortgage Recording And Transfer Taxes

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Florida And Georgia Mortgage Taxes – How Much Do You Have To Pay?

September 14th, 2011 |

Author: yroth

I get a lot of questions about the mortgage documentary stamp taxes from borrowers in both Florida and Georgia who aren’t clear on how much they have to pay as part of their closing costs when the refinance their existing mortgage or take out a new mortgage for a new home purchase.

Here’s the answer.

In Florida, you have to pay a documentary stamp tax that is .0035 x the loan amount PLUS an intangible tax of .002 x the loan amount. An easy way to calculate this is to add them up to .0055 x the loan amount.

So, if you’re borrowing $200,000, your mortgage tax (i.e. docs stamps and intangible tax will be 200,000 x .0055 = $1100.)

As a result of the documentary stamp and intangible tax, Florida is on of the more expensive states in terms of the closing costs the borrower/buyer has to pay. On the other hand, Florida has no state income tax, so the doc stamp tax and intangible tax is one way the state of Florida generates additional state revenue.

In Florida, for purchase transactions, there is a transfer tax; however it is paid by the seller of the home.

This is .7 x the purchase price of the home. So, if the home sells for $200,000, the seller has to pay the state of Florida $1400 as a transfer tax (200,000 x .7 = $1400.)

In Georgia, the state mortgage tax is $3 for every $1000 in mortgage amount. The calculation is .03 x the loan amount.

For example, if the mortgage amount is $200,000 the state of Georgia will assess a tax of $600. (i.e. 200,000 x .03 = $600.)

This applies to both mortgage refinance transactions and purchase transactions.

Tags: documentary tax, Florida, Florida documentary taxes, Florida Intangible tax, Georgia, home loan, intangible tax, mortgage, refinance |

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Maryland Recording And Transfer Mortgage Tax – How Much Do You Have To Pay?

September 13th, 2011 |

Author: yroth

I talk to a lot of people who are buying real estate or refinancing their homes in Maryland and come across the Maryland Recording And Transfer Mortgage Tax.

The mortgage tax is substantial but varies according to what type of transaction you’re doing.

This article will shed light how much you have to pay the state of Maryland if you’re refinancing your existing mortgage or taking out a new mortgage for a home purchase.

On refinance transactions, you only pay the recording tax on the difference between the existing mortgage payoff amount and the new mortgage amount.

So, if your mortgage payoff is $100,000 and your new mortgage amount is $105,000, you’ll be taxed on the new money or the $5000 difference in this case. This only applies to primary residences.

If you’re refinancing a second home or investment property, the tax is paid on the full mortgage amount.

If you’re buying a new home, you have to pay the Maryland state transfer tax. Usually, the tax is split 50/50 between buyer and seller.

If the buyer is a first-time home buyer, the buyer’s half is waived. Good news, indeed.

Now to the amount of the Maryland recording and transfer tax.

The recording and transfer tax varies according to the county the property is located in.

For example, if the property is located in Montgomery county, the recording tax is $6.90 per thousand and $10.00 per thousand if the loan amount is over $500,000.

The transfer tax, on the other hand, is 1.5% of the loan amount. Wow.

So you see the Maryland transfer tax can get expensive.

Email me at yroth@amerisave.com if you’d like to know how much you’ll have to pay the state if your home is located in another county.