Mortgage Tax

Mortgage tax refers to a tax that is levied when a borrower takes out a mortgage to purchase property. This tax is typically based on the amount of the mortgage loan and is paid to the state or local government. It can be a one-time fee paid at closing or an ongoing tax that may be included in the monthly mortgage payments. Some regions offer exemptions or reduced rates, so it’s essential to understand the specific rules in your area when considering a mortgage. This tax helps fund local services and infrastructure.