Queens vs. Long Island: A Huge Difference in Closing Costs

Alisha
2 days ago
6 min read

Buying a $700,000 Home? Closing Costs Can Look Very Different Depending on Where You Buy

When you're preparing to buy a home in New York, the down payment isn't the only cash you'll need at closing.

Where you buy can also make a significant difference.

Consider a buyer purchasing a $700,000 home with 10% down and a $630,000 mortgage. The financing is the same, but purchasing in Queens versus Nassau or Suffolk County on Long Island can result in very different closing costs.

One of the biggest reasons? Mortgage Recording Tax.

The $700,000 Home Purchase Example

Let's start with the same basic scenario in both locations:

Purchase Price: $700,000

Down Payment (10%): $70,000

Mortgage Amount: $630,000

At first glance, you might assume the buyer's closing costs would be relatively similar regardless of whether the property is in Queens or Long Island.

But location matters.

Buying in Queens, NY

For a $630,000 mortgage, the buyer's portion of the Mortgage Recording Tax could be approximately $12,100.

Buying in Nassau or Suffolk County

For the same $630,000 mortgage, the buyer's portion could be approximately $5,010.

What's the Difference?

That's approximately a:

$7,100 difference

And remember—the purchase price, down payment, and mortgage amount in this example haven't changed.

Only the property's location has.

What Is Mortgage Recording Tax?

Mortgage Recording Tax is a tax associated with recording certain mortgages against real property in New York.

The applicable tax can vary depending on factors such as where the property is located, the mortgage amount, and the transaction structure.

That's why two buyers borrowing the same amount of money can potentially face very different mortgage-related closing expenses when purchasing properties in different areas.

For buyers comparing Queens and Long Island, this can become an important part of determining how much cash they should have available for closing.

Your Down Payment Is Only Part of the Picture

A common mistake—especially among first-time home buyers—is focusing primarily on the down payment.

Using our example, the buyer knows they'll need:

$70,000 for the 10% down payment.

But that doesn't mean $70,000 is all they should have available to complete the purchase.

There can be several additional expenses associated with financing and closing a home.

What Closing Costs Should Buyers Prepare For?

Depending on the transaction, buyers may encounter expenses including:

Lender Underwriting and Financing Fees

Your lender or mortgage provider may have underwriting, application, processing, or other loan-related charges.

The specific fees depend on the lender and financing program.

Title Search

A title search helps identify matters involving ownership and the property's title history that may need to be addressed before closing.

Lender's Title Insurance

When financing a home, the lender will generally require a lender's title insurance policy to protect its interest in the property.

Owner's Title Insurance

An owner's title insurance policy is separate from the lender's policy and is designed to protect the homeowner's ownership interest, subject to the terms and exclusions of the policy.

Mortgage Recording Tax

As our Queens-versus-Long-Island example demonstrates, this can represent a substantial expense—and the amount can vary significantly based on location and other transaction details.

Attorney and Transaction-Related Expenses

New York real estate transactions commonly involve attorneys, and buyers should account for legal fees and other transaction-related expenses that may apply.

Additional costs and adjustments may also appear depending on the property and transaction.

Queens vs. Long Island: Why Location Matters

A buyer deciding between Queens and Long Island might initially compare:

Home prices
Property taxes
Commute times
School districts
Neighborhood amenities
Property size
Monthly mortgage payments

But estimated cash needed to close deserves a place on that list as well.

A property with a similar purchase price can require a different amount of upfront cash depending on where it's located.

In our $700,000 example, the estimated difference in the buyer's Mortgage Recording Tax alone is roughly $7,100.

For someone working with a specific amount of savings, that difference can matter.

Bonus Tip: Don't Automatically Assume Who Pays Transfer Taxes

Another closing-cost item buyers should understand is the applicable transfer tax.

Transfer taxes are generally paid by the seller in a typical transaction, but buyers should not make assumptions about their individual purchase.

The purchase contract matters.

Your real estate attorney can review the contract and explain which party is responsible for applicable taxes and other expenses.

Always confirm your obligations before signing or moving forward with the transaction.

How Much Cash Do You Actually Need to Close?

This is one of the most important questions to ask before making an offer.

If you're purchasing a $700,000 home with 10% down, don't stop your calculation at:

$700,000 × 10% = $70,000

Instead, consider the broader picture:

Down Payment + Estimated Closing Costs + Applicable Prepaid/Adjustment Items = Estimated Cash Needed for Closing

The exact calculation will vary by transaction.

Preparing for these expenses early can help reduce surprises later in the home-buying process.

Why Buyers Should Review Closing Costs Before Making an Offer

Understanding your potential closing costs isn't something that should wait until closing day.

Before making an offer, buyers can benefit from discussing the transaction with their mortgage professional, real estate agent, and attorney.

Knowing your estimated cash requirements can help answer important questions:

Do I have enough funds for the down payment and closing costs?
How much money should I keep in reserve after closing?
Will buying in Queens versus Long Island materially change my upfront costs?
Are there loan programs, credits, or other options that may apply to my situation?

The goal is to understand the financial picture of the purchase—not simply whether you can afford the down payment.

Frequently Asked Questions

How much is the down payment on a $700,000 home with 10% down?

A 10% down payment on a $700,000 purchase price equals $70,000.

That would leave an estimated mortgage amount of $630,000, before considering any financing-specific adjustments.

Are closing costs included in the down payment?

Generally, the down payment and closing costs are separate components of the funds needed to complete a purchase.

Buyers should prepare an estimate of their total cash needed to close, rather than budgeting only for the down payment.

Why is Mortgage Recording Tax higher in Queens than Long Island?

Mortgage Recording Tax rates can differ based on the location of the property and applicable state and local taxes.

Because Queens is part of New York City, a mortgage recorded there may be subject to different applicable taxes than a mortgage recorded in Nassau or Suffolk County.

How much could the Mortgage Recording Tax be on a $630,000 mortgage in Queens?

Using the educational estimate in this example, the buyer's portion could be approximately $12,100.

Actual amounts can vary based on the transaction, mortgage, property, exemptions, and other factors.

How much could it be in Nassau or Suffolk County?

Using the same $630,000 mortgage example, the estimated buyer portion could be approximately $5,010.

That represents a difference of roughly $7,100 compared with the Queens example.

Who normally pays transfer taxes when buying a home in New York?

Transfer taxes are generally a seller expense in a typical transaction. However, the purchase contract and circumstances of the transaction matter.

Buyers should have their attorney confirm exactly what their contract requires rather than assuming which party will be responsible.

When should I ask for a closing-cost estimate?

Ideally, before making an offer or early in the financing process.

Having an estimate of the down payment, loan costs, title expenses, mortgage taxes, prepaid items, and other potential expenses can give you a better idea of the cash you'll need to complete the purchase.

Planning to Buy in Queens or Long Island?

Whether you're purchasing your first home or preparing for your next move, understanding the full cost of buying—not just the purchase price and down payment—can help you plan ahead.

Questions about financing or preparing to buy a home?

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