Tip 23-2012: Significant Changes To Refinance Recording Costs Start July 1st
Effective
July 1, 2012, Virginia is reducing the recording costs for the
refinance of any existing debt, but the recording costs exemption many
previously enjoyed is also being eliminated.
The current
recording cost for a Deed of Trust is $3.33 per $1,000.00 of the loan
amount (ex. $100,000 Deed of Trust cost $333.00 to record.) If the new
loan was a refinance of an existing loan with the same lender,
then there was no recording cost up to the amount of the existing Deed
of Trust (ex. A refinance with Bank A of an existing $100,000 Deed of
Trust, also with Bank A, would not incur any recording tax.)
As
of July 1, any refinance of a borrower's loan (in other words, the loan
is not to purchase the property) will be taxed at a rate of $2.40 per
$1,000.00. Accordingly, both $100,000 refinances described above will
cost $240.00 in recording tax. It does not matter who the original
lender was, all that matters is that the loan is a refinance of an
existing debt.
This is another reason to take advantage of the
historic low interest rates by refinancing of borrower's current loan.
Not only can borrowers lower their monthly payment by taking advantage
of a lower interest rate, but now they can save on the new recording
costs of the refinance of an existing debt. Once again, it's a great
time to tell everyone to contact a local lender to refinance all of the
residential and investment loans.
PS - If anyone is
planning to refinance their loan with their current lender, you need to
close and record by June 29, 2012 or your recording cost will increase
significantly.
Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions, or visit our blog below for previous tips. Thank you for allowing us to send you this email.
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William D. Tucker, III
Charlottesville, VA 434-973-7474 | Lake Monticello (Palmyra, VA) 434-589-3636
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