Question

What is the mortgage recording tax paid on a property that sold for $485,000, assuming there is a tax rate of $2.05/$100 of the loan amount and the bank uses an 80% LTV...?

Answer 1

$7,954

Step-by-step explanation:

Calculation for the mortgage recording tax paid on a property

First step is to find the tax rate

Tax rate =2.05/100

Tax rate = 0.0205

Second step will be to multiply the percentage of the tax rate with the price of the property that was sold for the amount of $485,000,

0.0205 × $485,000

= $9,942.5

The third step will be to calculate the LTV which is fully known as loan to value which was given as 80 % in order for us to known mortgage recording tax paid on the property

Hence,

Mortgage recording tax paid on the property $9,942.5 × 0.8 =

Mortgage recording tax paid on the property $7,954

Therefore the Mortgage recording tax paid on the property that was sold for the amount of $485,000 will be $7,954