NYC Real Estate Lawyer Natalia Sishodia Explains Mortgage Recording Tax in New York

NYC real estate lawyer Natalia Sishodia releases a new article (https://sishodia.com/how-do-i-avoid-mortgage-recording-tax-in-ny/) explaining the meaning of mortgage recording tax in New York. The lawyer mentions that if an individual is looking to purchase property in New York City, they should already be aware that it is going to be a costly venture. Aside from the cost of the property, the buyer may also be responsible for some closing costs.

“Closing costs will involve everything from application fees and origination costs to appraisals and legal fees. One of those closing costs is the mortgage recording tax. It is important to speak with an experienced NYC real estate lawyer when dealing with real estate matters. A skilled lawyer will be able to help you understand your rights in the transaction and the costs you are likely to incur,” says the NYC real estate lawyer.

NYC real estate lawyer

The lawyer mentions that in New York if an individual obtains mortgage financing, both state and local governments will collect a mortgage recording tax that will document the mortgage transaction. This is a separate cost from the costs associated with the mortgage the buyer will be required to pay at closing.

Attorney Natalia Sishodia says that for condos and one to three-family homes, the borrower’s portion of the mortgage recording tax will be 1.80% of the loan amount. This is only if the mortgage is less than $500,000. If the mortgage is above $500,000 the mortgage recording tax is calculated at 1.825% of the loan amount. The lender is also responsible for 0.025% of the loan amount.

In the article, attorney Sishodia adds that the purchase and financing of a co-op is not subject to the mortgage recording tax. The tax is only imposed on the financing of real property and co-op is not considered real property. If an individual is looking to purchase a co-op, they do not have to worry about paying the mortgage recording tax.

According to the real estate attorney, “In a refinance situation, the mortgage recording tax can be greatly reduced or avoided when the original lender agrees to assign the existing mortgage to the new lender and the new lender agrees. The mortgage recording tax will only be calculated based on the difference between the old loan and the new money. This process can even be more streamlined when a borrower refinances with their original lender.”

Lastly, the real estate attorney emphasizes the importance of having a skilled attorney when it comes to dealing with matters such as closing costs. An experienced lawyer may be able to help the client understand their rights and make guided decisions about their purchase.

About Sishodia PLLC

Sishodia PLLC’s team of professional New York foreign investment lawyers pride themselves on their ability to give the most comprehensive advice and guidance possible for their clients. The lawyers at Sishodia PLLC take time to fully understand each client’s unique goals and circumstances, minimizing potential risks and issues. Call them today at (833) 616-4646 for a consultation.

Sishodia PLLC

600 Third Avenue 2nd Floor, New York, NY 10016, United States

(833) 616-4646

###

For more information about Sishodia PLLC, contact the company here:

Sishodia PLLC
Natalia Sishodia
+18336164646
natalia@sishodialaw.com
Sishodia PLLC
600 Third Avenue 2nd Floor, New York, NY 10016, United States

FacebookTwitterGoogleDiggRedditLinkedIn