Real Estate Terms Dictionary
Additional Mortgage Tax
Definition of 'Additional Mortgage Tax'
The additional mortgage tax is a type of tax that results from securing a mortgage. It is a form of mortgage recording tax, like the basic tax or the city tax.
What is an Additional Mortgage Tax:
If you took a mortgage loan for a property, then you must record the mortgage with the county clerk's office and pay a tax for this. This is known as the mortgage recording tax. All mortgage loans are subject to this additional tax unless it has been suspended in the county where the property is located. The amount to be paid usually varies from 25 cents to $2.5 for each $100 of mortgage loan, depending on the loan amount and the location of the property. The additional mortgage tax can be a significant addition to the final costs of taking a loan, so it is recommended that it's taken into consideration right from the start.
Here's a real-life example from one of the properties researched on PropertyShark:
The glossary is intended to provide real estate professionals and home buyers with a basic understanding of various specialized terms related to legal rights over a property. All terms appear in public records such as ACRIS. We do not take responsibility for the legal accuracy of the definitions provided and ask that use of these explanations in a legal setting be made only after checking with a lawyer or another specialist in the field.