Finance
Vermont's mortgage recording tax is paid by:
AThe lender at the time of origination
BThe borrower at the time of recording the mortgage in the town land records✓ Correct
CThe title company from the escrow account
DThe state of Vermont from property transfer tax receipts
Explanation
Vermont imposes a mortgage recording tax paid by the borrower (mortgagor) when the mortgage is recorded with the town clerk. The tax is based on the principal amount of the mortgage.
People Also Study
Related Vermont Questions
- Vermont's 'mortgage discharge' must be recorded within how many days of the mortgage being paid in full?Finance
- Vermont uses a town-based recording system. When a deed is recorded, it is filed with:Property Ownership
- A Vermont borrower's gross monthly income is $7,500. Their proposed monthly housing costs (principal, interest, taxes, insurance) total $2,100. What is their front-end debt-to-income ratio?Finance
- A buyer takes out a $250,000 mortgage with monthly payments of $1,600. The first month's interest is $1,250. How much principal is paid in the first month?Real Estate Math
- A Vermont buyer obtains a $400,000 mortgage at 7% annual interest with a 30-year term. Using the factor of $6.65 per $1,000 borrowed, what is the estimated monthly principal and interest payment?Finance
- In Vermont, discount points paid on a mortgage loan each represent:Finance
- A Vermont buyer takes out a 90% mortgage on a $340,000 home. What is the loan amount?Real Estate Math
- Vermont's discharge of mortgage (release) must be recorded in the land records to:Escrow & Title
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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
State-Specific Concepts
Transfer Tax
Study This Topic
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →