This Article Is About Getting More House For Your Money With Low Property Taxes
Getting More House For Your Money is possible.
- Getting More House For Your Money for home buyers can be done by getting a home with lower property taxes
- Property taxes vary widely from state to state and county to county
- New Jersey has the highest property tax rates in the country followed by Illinois
- There are towns and municipalities where property taxes are 4% of the property’s value
- Round Lake Beach, Illinois has one of the highest property tax rates than any city in the state of Illinois
In this blog, we will discuss Getting More House For Your Money.
Advice In Getting More House For Your Money
Home buyers will get more house for their money by purchasing a home with low property taxes.
- It is not the dollar amount of a home that is important but rather how much is the monthly housing payment that is important
- Loan Officers will qualify borrowers on the maximum monthly housing payment they can afford
- Not the dollar value of the home
- A $2,000 monthly housing payment can be on a $250,000 home or $350,000 home
- A home buyer may qualify for a $250,000 home in an area with higher property taxes and a $350,000 home with a lower taxed area
- A $500 monthly property tax payment is equivalent to a $100,000 mortgage loan balance
- Property tax is different depending on the state and township
- Home buyers should not just look at the price of the home, but also check what the property taxes are
Remember, getting more house for your money is dependent on the property taxes.
Lower Mortgage Rates Is Key In Getting More House For Your Money
Lower mortgage rates is key in getting more house for your money.
- Lower credit scores mean higher risk for lenders
- Therefore, lower credit score borrowers will be getting higher mortgage rates
- A borrower with a 580 credit score may get a 5.75% mortgage rate versus a 700 credit score borrower where their mortgage rates may be at 4.125%
- The huge pricing difference on the mortgage rates may mean a $100 to $200 per month difference in payments
- $200 monthly payment is equivalent to a $40,000 mortgage loan balance
Remember to work on boosting your credit scores prior to starting the mortgage process so you can get more house for your money.
Homeowners Association Dues Affect Buying Power
Many first time home buyers want to purchase a condominium and/or townhouse as their first home due to being lower priced.
- Many times, home buyers can purchase a higher priced single-family home versus a condo or townhouse and have the same monthly housing payment
- Most single-family homes do not have homeowners association dues
- There are instances where a condo and/or townhouse HOA fees are $500
- A $500 monthly HOA fee is equivalent to a $100,000 mortgage loan balance
When shopping for a home, take the HOA fees into account. Buying a single-family home may get you more house for your money.
With mortgage rates at a 20 month low, home buyers can get a lot more house for their money. For any questions in qualifying for a loan program that best suits your need, please contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at email@example.com. Gustan Cho Associates Mortgage Group is available 7 days a week, including late evenings, weekends, and holidays.
April 23, 2019 - 3 min read