It is advisable to have your own attorney represent you in the refinancing procedure. Your lawyer should help guide you through the process and be at your side at the closing when you will be asked to sign many complicated documents.
Do you pay mortgage tax when refinancing?
With any mortgage—original or refinanced—the biggest tax deduction is usually the interest you pay on the loan. Generally, mortgage interest is tax deductible, meaning you can subtract it from your income, if the following applies: The loan is for your primary residence or a second home that you do not rent out.
Do I need a lawyer when I refinance?
As mentioned above under Tip No. 3, some states require the use of a real estate attorney in the refinance process. While it is otherwise not necessarily required, we highly recommend hiring an attorney if only to have someone there who’ll understand the mortgage terms that may get thrown around.
Do you have to pay taxes on a refinance in New York?
New York may be the only state that requires a tax for a refinance. Sorry for those who live there. In other states the only “tax” on a refinance might be what they call a recording fee which is the cost that the local courthouse charges to record the mortgage documents.
What should I know about refinancing my mortgage?
Refinancing at the right time can help you lower your mortgage payments, but it also requires you to pay fees and other closing costs. Use a refinance calculator to see if refinancing your loan makes sense for you and to estimate the breakeven point. Here are some more tips to help you with your mortgage refinance:
When do you pay mortgage tax in New York?
“Under New York law, a mortgage recording tax must be paid when a new mortgage is created and recorded on a property,” said Douglas F. Wasser, a Manhattan real estate lawyer.
Does a mortgage tax apply in a Refi?
The 1.8% Mortgage Tax on a NYC condo would then make a refi prohibitively too expensive to be practical. Thanks for any insight you might have. I am facing exactly the same dilemma. ING Direct is refusing to assign our current mortgage to a new lender. Needless to say the mortgage recording tax eliminates any incentive to refi.
