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Unlock Home Buying Savings Million Dollar House Tax Explained

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The Middle Class

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Whenever you buy a house that's a million or more, and yes, you'll see many homes selling for $999,999. But if it's a million dollar or more, there's a 1% tax. And it changes in tiers if it gets way more than that. In Jersey, they switch the rules. Who has to pay that? But the bottom line is there's a onetime fee that adds to your closing cost. And again, >> yeah, >> we'll get to that at some point. But savings and how much money people have for their down payment, they often times forget closing costs. Closing costs are a fortune. differs from state, differs by county, >> and when you're buying a home for 1.1, there's an $11,000 fee added onto your closing cost. Now, $11,000 for most people, it's not pocket change, and that takes a big toll.