Big change for Maryland refinances involving non-principal residences
Until recently, Maryland treated refinances of principal residences and other properties differently.
A borrower refinancing a principal residence paid recordation taxes on the difference between the outstanding principal balance of the existing loan and the face amount of the new loan. However, for non-primary residences (and for commercial property) a borrower paid recordation taxes on the full amount of the new loan.
A new law removes that distinction. All refinances are treated the same, with recordation tax assessed only on the difference between the outstanding principal balance of the existing loan and the face amount of the new loan. The law is effective for all mortgages recorded on or after July 1, 2013.
Related Articles
Federal Title Featured by Redfin
We’re excited to share that Federal Title & Escrow Company was recently featured in a Redfin article discussing one …
Fear Not! You Did NOT Just Sell Your House for $10!
Virginia deeds often say something like the following: “That for and in consideration of TEN DOLLARS ($10.00), cash in h…
NVAR Contract – What Day is It?!
Our attorney team recently received two great questions about the Northern Virginia Association of Realtors (NVAR) Contr…
Ready to Get Started?
Get a guaranteed quote from Federal Title — attorney-led, consumer driven since 1996.