What Are Transfer Taxes on a Mortgage?
Buying a new home can be quite an exciting (and somewhat stressful) experience, especially when it comes to tax rates, fair market, and closing costs. You might wonder, “how do I afford a new home?”. To help answer questions like this when looking for a home purchasing loan in Tucson, read more about the process below.
When you make the decision to start looking for a new home, you might be thinking to yourself, “what are transfer taxes on a mortgage?”. While the rules of transfer tax can change depending on your location, it’s important to be prepared by knowing what a transfer tax is and how it appears on a mortgage.
In this blog post, we’ll discuss what transfer taxes are and how the team here at Altitude Home Loans can help you throughout the process.
What are Transfer Taxes?
Before we fully dive into answering the question of “what are transfer taxes on a mortgage?”, let’s go over mortgage and what it is.
A mortgage is a loan agreement between the buyer and a lender and it’s what gives you the capability as a new homeowner to purchase real property. Over time, you continue to make mortgage payments. If you fail to do so, the lender you made the agreement with can take the property back. This is why it’s important to keep up with your payments after buying a home.
A transfer tax, not to be confused with property taxes, is a one-time payment enforced by the state or local jurisdiction when a transfer of real estate property occurs between the seller and a qualified buyer. To put it simply, it’s what happens when a property changes ownership. The transfer tax is equal to the percentage of the appraised value of the property you’re purchasing.
Depending on where you are located, the buyer and seller can negotiate who will pay the real estate transfer tax. While it may seem like an intimidating decision to make in theory, the customs surrounding the local real estate market will ultimately help make that decision.
Turn to a Professional Lender to Explain Your Mortgage Responsibility
If you’re ready to purchase a home, start with us at Altitude Home Loans. Once you find your home loan officer, all you have to do is apply for your loan through our easy-to-follow online portal on our website. Your personal loan officer will reach out and guide you through the process. It’s as easy as that!
With our professional team of home loan officers, we can guide you in the right direction for mortgage payments and transfer taxes.
Contact Altitude Home Loans in Tucson, AZ
If all this financial jargon is confusing you, you’re not alone. Many homebuyers struggle to understand the financial complexities of their first home purchase. To ease those concerns, you need a mortgage broker who is qualified to help. Our team here at Altitude Home Loans can help with answering questions like “what are transfer taxes on a mortgage?”.
Call us today at 520-500-1010 or contact us online to schedule an appointment with a home loan officer at Altitude Home Loans in Tucson, AZ.