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Fortunately, the answer is no. You do not have to pay income taxes on the money you get through a cash-out refinance.
Taxes, generally paid by the buyer/borrower, are due when the mortgage is recorded. What does the tax look like in real numbers? Lets say you purchased a beautiful single-family home for the bargain price of $650,000 in New York City. Your mortgage recording tax comes out to $14,137.50.
The mortgage recording tax requires purchasers to pay 1.8% on mortgage amounts under $500,000 and 1.925% on mortgage amounts above $500,000 in NYC (this includes the recording tax for both New York City and New York State). NY state imposes a mortgage tax rate of 0.5%.
In many instances, the buyer pays the recording fees for the new mortgage and deed to be entered into a legal record. 2 The amount depends on the type and complexity of the real estate transaction. The recording fee for a deed may cost $12 in one county, while another county charges buyers $15.
In NYC, the buyer pays a mortgage recording tax rate of 1.8% if the loan is less than $500,000 and 1.925% if more than $500,000 or more. Buyers of commercial property pay 2.55%. These rates are what the buyer is responsible for. Your mortgage lender will also contribute 0.25%.
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The most common way to avoid paying a mortgage recording tax in New York City is to purchase a co-op rather than a condo or another type of residential property. You might wonder why co-ops, but not condos and other residential properties, are exempt from the mortgage recording tax, and the answer is simple.
In NYC, the buyer pays a mortgage recording tax rate of 1.8% if the loan is less than $500,000 and 1.925% if more than $500,000 or more. Buyers of commercial property pay 2.55%. These rates are what the buyer is responsible for. Your mortgage lender will also contribute 0.25%.
In NYC, the buyer pays a mortgage recording tax rate of 1.8% if the loan is less than $500,000 and 1.925% if more than $500,000 or more. Buyers of commercial property pay 2.55%. These rates are what the buyer is responsible for. Your mortgage lender will also contribute 0.25%.
special additional tax of 25 cents per $100 of mortgage debt or obligation secured.
Who Pays the Real Estate Transfer Tax? In New York, the seller of the property is typically the individual responsible for paying the real estate transfer tax. However, if the seller doesnt pay or is exempt from the tax, the buyer must pay.

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