The Quick Read: Counties charge a flat fee to record your new mortgage, and some states and counties add a tax based on the loan amount. The flat fee is usually small. The loan-based tax can be large, and it is the part that changes from county to county. A cash-out loan is bigger than a plain refinance, so it can carry a bigger tax base. Some places tax only the new money, which softens the hit.
Key Takeaways
- A county recording charge has two possible parts. One is a flat fee per document and page. The other is a tax that scales with the loan.
- Whether the tax applies to the whole new loan or only the cash-out portion depends on where you live.
- Government charges are set by law. You can’t negotiate them, but you can compare the lender and title lines around them.
- Your loan program decides whether recording costs come out of your proceeds, your pocket, or the loan balance.
- Read the government-charges section of your own Loan Estimate. It beats any national average.
What Does Recordation Actually Cost You?
It costs whatever your county, and sometimes your state, says it costs. There is no single national number. Anyone quoting one is averaging very different places.
Recording means filing your new mortgage with the local land records office. That filing puts the lender’s lien on the public record. If your old loan is paid off, a release of that old lien is usually recorded too.
Two kinds of charges can come out of that process:
1. A flat recording fee. The county sets it, usually per document and per page. It does not grow when your loan grows.
2. A mortgage or recordation tax. Some states and counties charge it as a percentage of the debt. This one grows with your loan.
Many borrowers only budget for the first kind. The second kind is where county differences become real money.
Why Does a Cash-Out Refinance Change the Math?
A cash-out refinance replaces your current mortgage with a larger one and hands you the difference. The new loan is bigger than the old balance. If your area taxes the loan amount, the base is bigger too.
Across the wholesale programs we place files with, a conventional cash-out on a one-unit primary residence tops out at 80% of the home’s value. On two- to four-unit primary residences, second homes and investment property, the cap is 75%. Fannie Mae’s Eligibility Matrix lists the same caps by occupancy and transaction type. The tax is built on the loan you end up with, so that ceiling also puts a ceiling on the tax base.
A refinance (the agencies call it a limited cash-out) works differently. It reaches 95% of value on a one-unit primary residence, and 97% on the first-time-buyer programs where the existing loan is agency-owned. The new loan covers the old first mortgage, closing costs and any purchase-money second lien, with only incidental cash back. The loan can be larger as a share of value. Cash-out loans still tend to be bigger in dollar terms when you pull equity, and in some places that matters a lot.
Seasoning matters here too. On a conventional cash-out, the first mortgage being paid off must be at least 12 months old, counted from note date to note date. You also need to have been on title for six months. There are exceptions for delayed financing, inheritance and legal awards.
The Three Layers of a County Charge
Most county bills stack up in layers. Knowing the layers lets you ask better questions.
| Layer | Based on | Grows with loan size? |
|---|---|---|
| County flat fee | Documents and pages | No |
| State mortgage tax | Loan amount | Yes |
| County or city add-on | Loan amount | Yes |
Some places have all three. Some have only the first. A few have a state tax and no county add-on. That is why two homeowners with identical loans can see very different totals.
Where the General Rule Breaks: Named Edge Cases
Several examples show the range. They illustrate the mechanism. Your own county’s schedule is what counts, and it can change.
Maryland: County-Set, Often Taxed on New Money
Maryland counties set their own recordation tax, usually expressed per $500 of debt and rounded up to the next $500 unit. Rates differ widely across counties. On a refinance, the tax generally applies only to principal above what remained on the original debt.
Here is the picture in percentages. Say the old balance is 60% of the new loan. The tax in a new-money county applies to the other 40%. The exemption usually requires that you be the original borrower and file an affidavit, so ask your closing agent.
New York: Taxed on the Full Loan Unless a CEMA Is Used
New York is nearly the opposite. The NYC Department of Finance says most refinances are subject to the mortgage recording tax. It lists state components: a basic tax of 0.500%, an additional tax that is 0.300% in the commuter district or 0.250% elsewhere, and a special additional tax of 0.250%. Individual co-op apartment mortgages are not subject to it.
County rates differ, and counties can change theirs. The state’s own notices show county taxes being added or adjusted. Lender and borrower split the pieces under local convention, so the lender normally pays the special additional tax on one- to six-unit residential loans.
Borrowers often ask about a CEMA, short for consolidation, extension and modification agreement. It is a commonly cited way to limit the tax to the difference between the old balance and the new amount. It adds paperwork and attorney work, so ask your closing attorney whether it fits your loan.
Florida: A State Tax on the Full New Loan
Florida’s documentary stamp tax on a mortgage is 0.35% of the debt secured, in the Department of Revenue’s terms, and the department says there is no cap on the tax due on a mortgage. It applies to the whole new loan, not only the cash-out piece. The county mostly matters for the flat recording fee here.
Tennessee and Others: State Tax Plus Local Surcharges
Some states tax the principal obligation at the state level, and some counties add surcharges on top. Tennessee is a common example. Because schedules vary by place and change over time, treat the county clerk or state revenue site as the final word.
The Pattern in One Table
| Type of place | What gets taxed | Cash-out effect |
|---|---|---|
| No loan-based tax | Flat fees only | Small, barely moves with loan size |
| New-money jurisdiction | Loan above old balance | Cash-out costs more than rate-and-term |
| Full-loan jurisdiction | Entire new loan | Same tax either way, scaled to loan size |
The table shows why “cash-out costs more” is true in some places and false in others. In a full-loan place, a rate-and-term and a cash-out of the same size pay the same tax. In a new-money place, the cash-out pays more because it adds new principal.
Who Pays, and Can You Roll It Into the Loan?
It depends on the program. This is one of the most practical questions to settle early.
- Conventional cash-out: closing costs, including government charges, can usually come out of your proceeds, within the loan-to-value cap. That means a loan-based tax directly reduces the cash you walk away with.
- Conventional rate-and-term: you can’t count on cash proceeds to cover it, because cash back is limited to incidental amounts. Fannie Mae’s limited cash-out cap sets a small ceiling, and it changed recently, so older articles may show an outdated figure. Check the live Selling Guide.
- FHA Streamline: HUD says lenders may not add closing costs to the new mortgage amount, and cash back is sharply limited. A tax-heavy county raises your out-of-pocket amount directly.
- VA: recording charges are generally allowable borrower costs. On a VA cash-out they can come from proceeds. On an IRRRL, those permitted fees can often be rolled in. Confirm the specifics with the lender, since VA policy sits in its Lenders Handbook.
A borrower in a new-money county with a modest cash-out might owe very little tax. A borrower in a full-loan county on the same loan owes tax on everything. That difference can decide whether pulling cash is worth it.
Where Do You Find the Number on Your Own Paperwork?
Look in Section E of your Loan Estimate and Closing Disclosure, headed “Taxes and Other Government Fees.” The CFPB explains that recording charges sit there, along with certain other settlement services. Those items generally can’t rise by more than 10% in total between the estimate and closing.
There is one wrinkle. The form separates flat recording fees from government charges based on loan amount or sale price, which it labels transfer taxes. So a mortgage-recording tax can land on the transfer-tax line rather than the recording-fee line. Add both lines when you compare estimates.
A few practical steps:
1. Ask the title or closing agent which county’s schedule applies.
2. Ask whether any tax applies to the full loan or only the new money.
3. Ask whether a refinance exemption or credit is available and what paperwork it needs.
4. Compare the government line, the lender lines and the title lines separately across estimates.
What Is Negotiable and What Isn’t?
Government charges are set by law, so they are not negotiable. The lender collects them and passes them on. What you can shop are the lender fees and title services around them. If two Loan Estimates show different government totals, the quotes likely assumed different tax treatment, such as new money versus the full loan. Ask why.
Is It Still Worth Refinancing?
A large upfront tax lengthens the time it takes to earn back your costs. That is the break-even idea. If you plan to move soon, a heavy charge can erase the benefit of a cash-out.
Think in terms of what you need the money for and how long you’ll keep the loan. A cash-out that pays off higher-cost debt or funds a lasting improvement can still make sense in an expensive county. A cash-out that funds a short-term want may not.
Also consider alternatives. A second lien or home equity line is a smaller loan, so a loan-based tax lands on a smaller amount in some places. But you keep your existing first mortgage and take on a second payment, so compare the whole picture.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Common Mistakes
- Assuming the charge is small everywhere. A flat fee is modest. A loan-based tax is not.
- Assuming the lender sets it. The government does.
- Assuming a refinance never re-triggers the tax. Some places tax it, and some exempt only the existing balance.
- Assuming cash-out and rate-and-term cost the same to record. That holds in some places and not others.
- Assuming you can roll everything into an FHA Streamline. HUD says no.
- Quoting old cash-back caps. Agency rules change, so check the date on any source.
Key Terms Defined
Recording fee: a flat charge a county records office takes to file a document, usually priced per document and per page.
Mortgage recordation tax: a government tax on the new mortgage, set as a share of the debt in states and counties that impose one.
Transfer tax: a government charge based on a sale price or loan amount, listed on a separate line of the Loan Estimate.
New money: the part of a refinance loan that exceeds the old mortgage balance, the portion some jurisdictions tax.
CEMA: a New York agreement that consolidates an old mortgage with a new one so the tax applies mainly to the difference.
Seasoning: the waiting period a loan or ownership must meet before a cash-out refinance is allowed.
Frequently Asked Questions
Is recordation tax the same as a transfer tax?
No. A transfer tax generally follows a change in ownership, such as a sale. A refinance usually triggers recording fees or a mortgage tax instead. Because the Loan Estimate can put a loan-based charge on the transfer-tax line, the labels get confusing, so ask your closing agent what each line is.
Does a cash-out refinance always cost more to record than a rate-and-term?
Not always. In places that tax only new money, it does, because the cash-out adds principal. In full-loan jurisdictions, the tax is the same either way for equal loan sizes. Your county’s rules decide it.
Can I roll the recording costs into my new loan?
It depends on the program. A conventional cash-out can usually pay them from proceeds, within the loan-to-value cap. An FHA Streamline cannot add closing costs to the balance. A VA IRRRL can often fold in those permitted fees. All of this is subject to lender guidelines and full file review.
Can I negotiate the county charge?
No, the government sets it. You can compare the lender and title fees around it and ask whether an exemption or credit applies to your loan.
How do I find my county’s actual amount?
Start with the government-charges section of your Loan Estimate, then ask the title or closing agent for the county schedule they used. The county clerk or state revenue site has the official figures, which can change.
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the cash-out refinance programs and the equity each one reaches. A Lendmire broker arranges these loans through wholesale lenders and does not lend directly. Every parameter here is subject to lender guidelines, and nothing in this piece is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and home buyers in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae – Eligibility Matrix
3. Florida Department of Revenue – Documentary Stamp Tax
4. Fannie Mae – Selling Guide B2-1.3-02, Limited Cash-Out Refinance Transactions
5. HUD – Streamline Refinance Your Mortgage
6. CFPB – What are government recording charges for a mortgage?
This article is part of Lendmire’s Refinance series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: How Much a Vacation Condo Cash-Out Refinance Releases · How Much a Duplex Cash-Out Refinance Releases for an ADU or Renovation · Can You Use a Cash-Out Refinance to Fund Your Business?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.