Closings glossary
Mortgage recording tax
The New York tax due when a mortgage is recorded, computed on the new money secured. On a building with six or fewer apartments the lender pays 0.25 points of the combined rate and may not pass it to the borrower, so a buyer there budgets 1.8 or 1.925 percent rather than the full rate. A CEMA is the standard structure used to reduce the taxable amount.
How much is the mortgage recording tax in New York?
Quick Answer
The full definition
The New York tax due when a mortgage is recorded, computed on the new money secured. On a building with six or fewer apartments the lender pays 0.25 points of the combined rate and may not pass it to the borrower, so a buyer there budgets 1.8 or 1.925 percent rather than the full rate. A CEMA is the standard structure used to reduce the taxable amount.
Also called: MRT.
Which related terms should you know?
These are the terms that come up alongside mortgage recording tax in the same file.
- CEMA (Consolidation, Extension and Modification Agreement)
- An agreement in which an existing mortgage is assigned and consolidated with new financing rather than being satisfied and re-recorded. It requires the current lender's cooperation and extra lead time.
- Transfer tax (RPTT and NYS)
- Taxes on the conveyance itself, one City and one State. Rates step up at higher prices, and who pays is set by custom and then confirmed by the contract.
- Mansion tax
- A New York State tax paid by the buyer on residential conveyances of one million dollars or more, graduated upward through a series of higher price tiers.
- Closing statement
- The itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer mortgage closings pair it with the Closing Disclosure.
- Recording
- Filing an instrument with the register or county clerk so it becomes part of the public record. Recording establishes priority against later purchasers and lenders.
Where does mortgage recording tax come up in a New York City closing?
A $750,000 mortgage on a Manhattan condo carries roughly $16,300 in mortgage recording tax, of which the buyer pays about $14,400, unless a CEMA assigns an existing balance to the new lender.
What else should you read before closing?
Questions this raises
- How does a CEMA work at closing?A CEMA assigns the old mortgage instead of satisfying it, so New York mortgage recording tax is paid only on new money. The documents and the seque...
- How are title fees shown on a Loan Estimate?Section C holds shoppable title services, Section E holds recording and transfer taxes. How to read New York title lines and compare them to the fi...
Closing checklists
- Refinance and CEMA closing checklistA New York refinance has no deed and no owner’s policy. It turns on the payoff, lien priority, the lender’s policy and whether a CEMA is available.
- Condo purchase closing checklistA NYC condo closing has a deed, an owner’s policy and a recorded mortgage, plus a right of first refusal waiver and a common charge arrears letter.
The statute itself
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