What taxes are involved in the purchase of a home?

When purchasing a home in California, there are several taxes that you need to be aware of. First, there is the Transfer Tax, which is a fee imposed by local government to transfer the title of the home from the seller to the buyer. This fee varies depending on the local government, but generally ranges between $0.55 and $1.10 per $500 of the sale price. Next, there is the Mortgage Recording Tax, which is a tax imposed by local government when you take out a mortgage on a property. This tax typically ranges between 0.0015% and 0.0067% of the loan amount. Finally, there is the Property Tax, which is an annual tax imposed by the county to fund local government. Property taxes are based on the assessed value of the property and can vary significantly from county to county. In addition to these taxes, there are also certain fees associated with closing a real estate transaction such as title insurance, escrow fees, and notary fees. It is important to factor these fees into the total cost of your home. In summary, when purchasing a home in California, you need to be aware of the Transfer Tax, Mortgage Recording Tax, and Property Tax. Additionally, there are certain closing fees associated with real estate transactions.

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