If I refinance an existing mortgage, do I need to pay the state tax stamp?

Asked by Fellpoint, 21231 Thu Apr 26, 2012

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ndouglastommy, Home Owner, Gambrills, MD
Fri Sep 6, 2013
If I refinance my family house and request a goodbye mortgage money for my town house, I will need to pay transfer taxes for the cash out amount? How much is the %?
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The Roskelly…, Agent, Gambrills, MD
Tue Aug 21, 2012
Hi Fell,

Unfortunately yes, however there are many lenders that will allow you to roll the closing costs right into the loan. A good idea if you are cash poor and will be in your residence long enough to recoup the expense.
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Lake Propert…, , Baltimore, MD
Sun Apr 29, 2012
Yes you will have adjustment between the two. Consult your title company.
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Robert Mcgee, Agent, Baltimore, MD
Fri Apr 27, 2012
Hu Fellpoint:

If it is your primary residence you pay tax stamps on the difference between the old mortgage and the new one. For example, if the principal amount goes from $200,000 to $250,000, then you pay on the $50,000 which in Baltimore city would be $500. You also pay the cost of recording the mortgage, and the lien release which is minor compared with tax stamps.

Bob McGee
Advance Realty Timonium
(410) 560-4574
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Anne Coscia &…, , Baltimore County, MD
Thu Apr 26, 2012
So far the best answer is from Chris Breck but any title company should be able to give you the re-issue rate on your current title insurance as long as it's not older than 10 years and you provide a copy of your current policy. Yes, it must be your primary residence, and you only have to pay the tax stamp on the difference between your old loan amount and your new one. Should you be paying off a second mortgage or a line of credit that's considered cash out and you'll be required to pay the stamps on that amount as well. Hope this helps.
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Simms Simmor…, , Baltimore County, MD
Thu Apr 26, 2012
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Chris Breck, , Baltimore, MD
Thu Apr 26, 2012
If it is your primary residence you only have to pay taxes on the difference between the principle balance of your existing mortgage and your new loan amount.

Oh and you can get title insurance that is even cheaper than a reissue rate if you know the right title company.

Contact me if you need more info.
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Asha Goel, Agent, Lutherville, MD
Thu Apr 26, 2012
Yes, you do. If you don't want to pay out of your pocket then you can finance the amount also. You might go to title company who did your settlement earlier and should get a break with closing cost. If you which I think you must have, took owner's title insurance policy at the time of closing then your cost should be much cheaper. If you have owner's title insurance then you should be getting reissue policy price.

Thank you,
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