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Georgia Refi…, Home Owner in 30326

When refinancing a mortgage in the state of Georgia, without a change in ownersip, is it necessary to pay a transfer tax?

Asked by Georgia Refi Question, 30326 Mon Jan 23, 2012

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Transfer tax is for the sale of a property not for a refinance.

Sally W. Hamby
Senior Mortgage Banker
Fidelity Bank Mortgage
404 644 7696
1 vote Thank Flag Link Mon Jan 23, 2012
Georgia Refi Question,

The answer is a qualified "no". I assume you are referring to a change in mortgage "ownership" and not the actual ownership of the home. If the name of the lender on the title documents obtained from your county and the name of your new lender are precisely the same, then yes you would not be required to pay transfer tax unless the new loan amount were higher than the current loan amount recorded on the security deed. But in many cases if a lender sold your loan to Wells Fargo after the closing, the lender on title could be listed as XYZ mortgage and new loan listed as Wells Fargo which would require you to pay the intangible tax.

Timothy Brown
LPO Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
tbrown@getevolved.com
678.468.5626 x110 | fax 678.935.1156 | cell 678.467.9959


Hope this makes sense!
1 vote Thank Flag Link Mon Jan 23, 2012
A transfer tax would not be included in the refinancing of a mortgage.
0 votes Thank Flag Link Thu Dec 5, 2013
Real estate transfer tax is an excise tax on transactions involving the sale of real property where title to the property is transferred from the seller to the buyer.

Before a deed, security instrument, or other writing can be recorded in the office of the clerk of the superior court, the real estate transfer tax must be paid. Once the tax has been paid the clerk of the superior court or their deputy will attach to the deed, instrument or other writing a certification that the tax has been paid.

The real estate transfer tax is based upon the property's sale price at the rate of $1 for the first $1,000 or fractional part of $1,000 and at the rate of 10 cents for each additional $100 or fractional part of $100. The tax must be paid by the person who executes the deed, instrument, or other writing or the person for whose use or benefit the deed, instrument, or other writing is executed. The real estate transfer tax is paid by the seller unless otherwise agreed by contract between the parties.
O.C.G.A. 48-6-1. - 48-6-10.
0 votes Thank Flag Link Mon Jan 23, 2012
Georgia Refi Question -

I think what you're referring to is the Georgia Intangibles Tax – which is $3.00 per $1,000 of the loan amount.

This tax must be collected at closing on a refinance, but there are some exceptions to the rule.

If the loan is same original lender (not brokered or sold and in MERS) to same lender, same borrowers to same borrowers, than it’s possible the tax can be waived - or reduced amount collected.

The best person who can answer this question for you is the closing attorney for the refinance.

Good luck!

Jonathan Cundiff
Mortgage Consultant
NMLSR ID 448285
Wells Fargo Home Mortgage
464 Cherokee Ave Se
Atlanta, GA 30312
Tel (404) 610-1011
Fax (877) 302-9968
Jonathan.R.Cundiff@wellsfargo.com
0 votes Thank Flag Link Mon Jan 23, 2012
The closing attorney would only collect Transfer Tax in a purchase transaction. The GA Intangible Tax does apply to both purchase and refinance transactions as does the $10 GA Residential Mortgage Fee.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Web Reference: http://www.rodneymason.com
0 votes Thank Flag Link Mon Jan 23, 2012
No there is no transfer tax for a refi, there is a "refinance" tax called the intangable tax though.

It is based on the loan amount.

Take the loan amount divided by $500
round that number up to the nearest dollar
Then multiply by 1.5 and that is your tax amount.

On the GFE it is often times shown in the same place as the transfer tax.
0 votes Thank Flag Link Mon Jan 23, 2012
From the Georgia DOR website, "Real estate transfer tax is an excise tax on transactions involving the sale of real property where title to the property is transferred from the seller to the buyer" in link below under web references. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com
0 votes Thank Flag Link Mon Jan 23, 2012
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