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Did You Know: Property Taxes
Posted by: | CommentsPROPERTY TAXES
Between 2006 and 2009, property values dropped 21% nationally. According to the National League of Cities, 25% of American cities raised their property tax rates in 2009. Like it or not, local governments depend on property taxes to pay for schools, police, libraries and other services. So it does not follow that just because property values drop that property tax bills will follow. You may wish to consider contesting your latest property tax bill. If so, call your local tax assessor’s office and ask about the process. Then here’s what you do. Check your assessment for correct land size, house size, and other imporvements. Collect information on at least 3 recent sales in your neighborhood that show your value is lower. They need to be properties similar to yours. Take Photos if your home needs repairs that would lessen its value. File On Time. In some areas, missing an appeals deadline could mean a year wait for a second chance.
Strike Now
Posted by: | CommentsThe Good News:
30 Year Fixed Rate home loans sank to 4.78% the week of May 26th, the lowest rate in 2010 and inching closer to the record of 4.71% set in 2009. This, along with the high inventory of available new homes, makes it a super time to be house hunting. A $200,000 loan would mean a principal and interest payment of only $1,046. If taxes, mortgage insurance and hazard insurance typical in the Richmond area are added in, one would have a total monthly payment in the range of $1,300 to $1,450 requiring gross yearly income of about $45,000 to $52,000. There is a spread here because each locality has a different tax rate and each loan instrument has different income to debt ratio requirements.
The Bad News:
FHA (The Federal Housing Administration) has announced that sometime this summer, they will SLASH the allowable maximum “seller concessions” from 6% of the home sales price to 3%. Seller concession rules allow buyers to ask the home seller to pay for a variety of settlement costs such as loan origination fees, points, state and local transfer fees, appraisals, and pre-paid items such as taxes and insurance. Currently, on a $200,000 home, a seller could agree to pay up to $12,000. That will go to $6,000 this summer when the new rules go into effect. FHA is still the best deal in town for cash out of pocket as they still only require 3.5% down. On the $200,000 home this would mean $7,000 versus a Fannie Mae or Freddie Mac that are requiring a minimum 10% down with excellent credit scores.
Both the Good News and the Bad News add up to one thing: Now is the time to strike and buy that new home!
