Real Estate Mathematics

Mortgage Recording Tax (MRT)

A NY tax imposed on the recording of a real property mortgage, paid by the borrower.


Definition

The Mortgage Recording Tax is collected when a mortgage is recorded against real property in NY. Rates vary by county: most upstate counties charge approximately 0.75–1.05%; NYC charges approximately 1.80% on residential mortgages of $500,000 or less and 1.925% on amounts over $500,000. The tax is paid by the BORROWER at closing. KEY EXEMPTION: co-op share loans are NOT real property mortgages, so they are exempt from MRT. CEMA agreements can substantially reduce MRT in refinances by limiting the tax to 'new money.'

Exam Tip

BUYER/borrower pays. Co-op share loans are EXEMPT (no real property mortgage). CEMA can save thousands in refinances by taxing only the new-money portion.

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