Real Estate Math

A New York buyer makes a 25% down payment on a property valued at $840,000. The mortgage recording tax rate is 1.925% (a common NYC rate for residential first mortgages over $500,000 on 1-3 family homes). How much is the mortgage recording tax?

A$12,217✓ Correct
B$12,348
C$12,469
D$16,170

Explanation

Loan amount = $840,000 x (1 - 0.25) = $840,000 x 0.

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