It appears lower interest rates in 2010 have attracted many homeowners to refinance their homes and has also helped fuel home purchases of modestly priced homes in Suffolk County.

With interest rates in the 4 to 6 percent range for much of 2010, the Suffolk County Clerk’s office recorded 41,863 mortgages last year, nearly the identical amount recorded in 2009.

While mortgage recordings remained constant, the Mortgage Tax collected with the recording of these mortgages decreased by $8,189,341.00, representing an almost 10% reduction in the amount of money borrowed with each mortgage.

New York State Mortgage Tax is calculated on mortgage loans and is collected when a mortgage is recorded in the County Clerk’s Office.  The 1.05% tax is distributed to Suffolk’s ten towns and villages and to New York State. 

In Suffolk County, the average mortgage amount for each recorded mortgage dropped in 2010 to $205,333.00.  In 2009, the average mortgage amount was $221,135.00.

With interest rates expected to remain low for the beginning of 2011, we anticipate further home mortgage refinancing.  Homeowners appear to be refinancing to lower their interest rates and monthly payments while leaving untouched whatever equity may still remain in their homes.

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