On a $900,000 purchase with 20% down, the down payment is $180,000 and the mortgage is $720,000. That calculation does not tell you the final amount to bring to closing.
For a financed New York purchase, one line worth identifying early is mortgage recording tax. New York taxes the recording of mortgage debt, with the applicable components depending on the property’s location and the transaction. The tax is tied to the secured mortgage amount, not simply the purchase price.
In that example, the starting debt amount is $720,000, not $900,000. The actual tax calculation and the portion charged to the borrower still need to come from the lender and closing professionals.
Get one estimate that accounts for everything
Ask the lender and attorney to reconcile the down payment with loan charges, mortgage recording tax, title and legal expenses, prepaid items, and any initial escrow deposit. Have them identify which amounts have already been paid and which remain due.
This last part matters. A contract deposit is not an additional down payment on top of the same money. Credits and deposits need to be reflected correctly so you are not counting them twice.
The Consumer Financial Protection Bureau’s Loan Estimate explainer shows how estimated cash to close combines the down payment and closing costs with deposits, seller credits, and other adjustments. Use the actual estimate for your proposed loan rather than a generic closing-cost percentage.
Compare loans using the same assumptions
A rate quote on one loan and a cash-to-close estimate on another are not enough for a useful comparison. Ask for the same purchase price, loan amount, loan type, and expected closing date. Then compare the charges and credits alongside the rate.
Keep your after-closing cash separate from the money required to complete the purchase. Moving costs, planned work, and a cash reserve belong in your budget even when they do not appear on the closing statement.
Before setting an offer price, I want those figures on one page. It is easier to choose a financing plan when you know both what the purchase takes today and what remains afterward.
Work through a New York purchase with TopNetRealty.
Featured image: AI-generated editorial illustration, not a specific property.
