REPLACE THE WORKED EXAMPLE 2 SECTION WITH THE FOLLOWING:
Worked Example 2: $875,000 Purchase in New York City
New York City layers multiple transfer and recording taxes onto buyers. The math compounds fast.
For an $875,000 purchase with a 25% down payment ($656,250 loan amount):
| Line Item | Estimated Cost |
|---|---|
| Loan origination (0.75%) | $4,922 |
| NY State mortgage recording tax (0.25% on loans over $500K) | $1,641 |
| Mansion tax (1.0% of purchase price) | $8,750 |
| Title insurance (owner + lender) | $4,100 |
| Attorney fee | $2,500 |
| Bank attorney fee | $950 |
| UCC filing | $175 |
| Appraisal | $725 |
| Prepaid interest (10 days) | $1,040 |
| Homeowner's insurance (first year) | $1,800 |
| Initial escrow deposit | $3,600 |
| Total | $30,103 |
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That is 3.4% of the purchase price. The mansion tax and transfer-related charges together comprise nearly two-thirds of the buyer's closing costs. A buyer relocating from Dallas to Manhattan who budgeted based on prior experience would still face closing costs significantly higher than expected, though the difference is driven more by the mansion tax than by a single outsized line item.
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