Asked and AnsweredI just found out I have to pay a fee to have my mortgage recorded. Is that right?
Yes. The recording of mortgages is a revenue generator for both New York State and New York City. Here are two examples of the mortgage recording tax due on mortgages with two different face amounts. The recording tax on a mortgage of $400,000.00 (or any loan of $500,000.00 or less) in New York City will be $8,200.00, or $2.05 for each $100 of mortgage loan. For a loan of $600,000.00 (or any loan greater than $500,000.00), the mortgage recording tax would be $13,050.00, or $2.175 for each $100 of mortgage loan. Mortgage recording tax rates are lower outside the five boroughs of New York City. The buyer’s attorney should bring the issue of the mortgage recording tax to the buyer’s attention as soon as possible, particularly if the buyer has never purchased real estate before in New York. For more on typical closing expenses, see "Closing Costs".