County Mortgage Tax paid by the Buyer?

Question

Hi Tax masters,I have a question about the county mortgage tax when purchasing a property.I'm quoting a mortgage from 3 lenders for a small multi-family in Bushwick/Ridgewood area (Brooklyn NY), and one of them estimated the county mortgage tax in their quote when the other 2 didn't.If anyone has some knowledges to share with this, I would appreciate it.

Account Closed · Answer

I am certainly not a tax expert, but fwiw, I just looked at my closing statement from the purchase of a Brooklyn multi-fam and as purchaser, I paid the following taxes:

Transfer Tax Additional Transfer(mansion)tax

Transfer Tax Supplemental NYC(mansion)tax

Mortgage Tax 1st mortgage

Jason Watson · Answer

Other people in the lending space might have better answers, but some lenders quote taxes, insurance, etc. to fully understand the monthly cash burden and ensure you know it as well.

Kenji Tominaga · Answer

Thank you Eric, the real life experience is the best reference!

Mohammed Rahman · Answer

Hey @Kenji Tominagai ! Building off of what we discussed so others who are perusing the forums can also see.

In NYC transactions, property taxes are pro-rated and sellers + buyers pay for the portion they're responsible for (depending on the calendar schedule of the county + closing date).

Transfer taxes are paid by the seller in most cases (unless its a new build, in which case its the norm for buyer to pay).

Of course the above 2 points can vary deal by deal based on the deal terms, but 99.99% of cases align with the above.

In terms of the actual *mortgage* county tax, if you google NYS Mortgage Tax rate form MT-15, you will find a several page document that will highlight your tax rate depending on which NYS county you're purchasing in.

Account Closed · Answer

that is correct Jason, I personally like it better like that so I can actually see what my payment is after everything is said and done.

County Mortgage Tax paid by the Buyer?

County Mortgage Tax paid by the Buyer?

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