Closings glossary
Mortgage recording tax
The New York tax due when a mortgage is recorded, computed on the new money secured. 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. A CEMA is the standard structure used to reduce the taxable amount.
Also called: MRT.
Where does mortgage recording tax come up in a New York City closing?
A $750,000 mortgage on a Manhattan condo carries roughly $14,000 in mortgage recording tax, unless a CEMA assigns an existing balance to the new lender.
What else should you read before closing?
In the glossary
- 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...
- 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 con...
- Mansion taxA 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...
- Closing statementThe itemized accounting of every credit, debit and disbursement at a closing. Commercial deals use a HUD-1 or ALTA settlement statement; consumer m...
- RecordingFiling an instrument with the register or county clerk so it becomes part of the public record. Recording establishes priority against later purcha...
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...
The statute itself
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