Why Property Taxes Matter When Buying A House?

When you are looking for a house in the Charlotte, NC. area property taxes can and do play a vital factor into the affordability of a home. A lot of people gauge the value of a house based on the tax value. As accurate or inaccurate as that may be at times that number holds one true definite factor. The property taxes you will pay on a house in charlotte, NC. Property taxes are generally escrowed into a mortgage loan. if you are getting a VA, FHA or USDA loan they are required to be escrowed into your payment every month. On conventional loans it depends on what you are putting down and then the option is usually yours. But how do they affect the value of a house? in Charlotte, NC. we are in Mecklenburg county and the property taxes are based on a dollar amount. Times the tax value. In Charlotte the property tax rate is 1.2292 per hundred dollars. So if you are looking at a $100,000 tax value the property taxes would be $1229.20 a year or a little over $100.00 a month. A $200,000 tax value would be $200.00 a month. When you are applying for a loan the bank will generally tell you what you are approved up to dollar wise. But that may exceed where you want to be payment wise because of the taxes. You could be looking at a house that is going to sell for $125,000 and you know you are approved for $130,000 so you feel comfortable with the mortgage payment. But then you find out that the tax value on the house is $200,000 and your taxes are now $70.00 a month more than you anticipated. I always advise buyers when they find a house they like to get a mortgage payment quote before putting in an offer. I give them the taxes that are on the property so they can get a true idea of what the payment will be...This way the decision they are making is truly an educated decision. Dave diCecco Realtor/Broker Coldwell Banker United www.davedicecco.com