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Originally Posted by Carla B
Wow, never heard of a mortgage tax, certificate of occupancy, etc. etc. If you ever get to "F" your real estate life should be much simpler. Good luck.
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Only a few states charge a mortgage tax. In NY it comes to about 1.8% for a mortgage up to $500,000. Many who refinance and take cash out wind up paying the tax on the entire mortgage rather than just on the additional money. Banks are NOT obligated to do the necessary paperwork and NEVER advise the uninformed. I insisted and persisted. Bank of America charged me $500 for preparing the documents but then post closing improperly discharged the mortgage creating the tax liability on a subsequent refi. We didn't find this out until many years later when we refinanced to get a lower rate. We were forced to pay the entire tax. But I spent the next year proving to Bank of America what they did wrong and eventually was reimbursed about $6000.
It can be confusing -- Caveat emptor at its worst.