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
Why Paper Checks Don't Pass the Closing Test
Why title companies require wire transfers over cashier's checks at closing, and how to protect yourself from wire fraud…
Official-Looking Mail vs. Your Wallet: A Scam Spotting Guide
A guide to spotting two common scams targeting new LLC owners and homeowners — fake annual report fees and deed copy sol…
More Than a Closing Company
When a last-minute gas service issue threatened a closing, Federal Title's attorneys stepped in to protect the buyer whi…
Ready to Get Started?
Get a guaranteed quote from Federal Title — attorney-led, consumer driven since 1996.