Finance (alternative)
Maryland's first-time homebuyer exemption from state transfer tax means:
AFirst-time buyers never pay any transfer taxes
BFirst-time buyers are exempt from the 0.5% state transfer tax, shifting the full amount to the seller✓ Correct
CFirst-time buyers pay only 0.25% state transfer tax
DThe county portion of transfer tax is also eliminated
Explanation
Maryland first-time homebuyers are exempt from paying the 0.5% state transfer tax.
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Key Terms to Know
Transfer Tax
A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
State-Specific Concepts
Transfer Tax
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