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What is a transfer tax on closing fees?

I'm trying to refinance my current FHA mortgage and my lender included a fee on my closing costs called a "transfer tax" for a considerable amount. What is this for and should I try to negotiate the cost down? by MHedberg from Conshohocken, Pennsylvania. Nov 9th 2012 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 4,842 contributions

This is a prime example of why I always suggest using someone local.. if you are dealing with an internet lender, they will often times not be aware of all the local customs of purchase and refinance transactions in your state.. In PA, the transfer tax is only collected on purchase transactions, not refinance transactions.. There are some lenders out there who don't know if it is necessary or not, so they disclose it "Just in Case"... I have seen the same confusion and poor disclosures from local banks as well as internet / nationwide lenders.. So I suggest using a local mortgage broker.. Not the bank, not the internet guy, and not the nationwide lender.. a local, brick and mortar mortgage broker.. Lower overhead, lower costs, better educated, familiar with local customs, equals a much smoother transaction.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Nov 9th 2012
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Bert Carpenter (BertCarpenter)
#6 ranked lender in Arizona - 1,732 contributions

This is the exact reason I always tell people to work with a local Mortgage Banker/Broker, rather than one of the big banks or big national mortgage factories. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. More importantly, we know and understand local requirements. If you are working with one of the big banks or national mortgage factories, stop and find a local Mortgage Banker/Broker. If you are working with a local Mortgage Banker/Broker they should know better. However, I have worked for firms that have pre-filled templates for disclosures and it would include a fee such as this. It is up to me to remove it if it didn't apply. Either way, if won't be charged, and if you ask, they should remove it and re-disclose to you without a fuss. If they do fuss or otherwise make you feel uncomfortable, then simply walk away. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Nov 9th 2012
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Mark Principi (centrallending9080)
#0 ranked lender in Pennsylvania - 26 contributions

should not apply to a refi .... please call me , i will explain everything !!Mark 215 970 5044

Nov 9th 2012
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Fred Glick (FredGlick)
#19 ranked lender in Pennsylvania - 9 contributions

Your lender is an idiot. Transfer tax is only for purchases in PA. Find a good mortgage broker instead!

Nov 9th 2012
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Fred Glick (FredGlick)
#19 ranked lender in Pennsylvania - 9 contributions

Does not apply to refis just purchased in PA. Your lender does not know what they are doing. Call us for a quote 2675144630 x1

Nov 9th 2012
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 1,545 contributions

Many states charge a fee/tax when a home is sold, sometimes that is paid by the seller, sometimes by the buyer. Other states charge a fee everytime there is a new mortgage recorded. It does not apply to refinances in PA but the lender may have a policy of disclosing in case it applies. If the fee applies and isn't disclosed the lender may have to "eat" the cost. It's easier to take the fee off but impossible to add it later.

Nov 9th 2012
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Richard C. Carlton (Carlton)
#17 ranked lender in Alabama - 14 contributions

Does not apply to Pa refinance.

Nov 9th 2012
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Patrick McCarthy (PatrickM)
#26 ranked lender in Ohio - 196 contributions

This only applies to refi's in Pa. I am licensed in Pa nd have as good of rates and fees as you will find anywhere. Pat McCarthy, Stonegate Mortgage, 614-310-7520

Nov 9th 2012
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Dennis Callan (Dennis)
#30 ranked lender in Pennsylvania - 7 contributions

There is definitely no transfer tax in Conshohocken on any type of mortgage refinance. I live and work in Conshohocken and would be happy to answer any questions you have.

Nov 9th 2012
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