How do you estimate property taxes and home insurance?

[Qacer]

Hi peeps! :)

I'm thinking of purchasing a small house in Temple Terrace. I got some quotes for monthly payments, but they only include principal and interest. I was wondering how I can go about figuring out the payments for property taxes and home insurance.

I tried going to the Hillsborough Appraiser's page, but I can't seem to decipher the info on there. I did see some tax numbers for one of the property, but the number seems kind of low when I try to use the Appraiser's property tax estimator. On the actual page for the property, it's showing that the property tax for $2007 was around $1500, but on the estimator page, I put in a millage rate of around 19.3 and it's showing about $3000 to $4000.

Also, I haven't found any pages regarding home insurance payments, so I'm clueless in that area.

Thanks!

[Aharon]

The price of the home versus the amount the property appraiser uses for taxes can be vastly different. It's really luck of the draw. Figure $1,000-$5,000 a year and you will be fine.. lol

[corey r.]

If I remember right, the MLS should list the last year's taxes.

[Qacer]

I checked out the MLS listing and the taxes are really different. The houses are in the same area, but there are some that pay $4000 and others $1500 even if the house prices are the same.

How does the appraisal process work anyway? Does the county appraise the value of a home every year?

I'm trying to run some numbers before actually committing to buying a home. Do you guys have any ideas in terms of how much homeowners insurance will be? My price range for the house is a maximum of $200k. The particular houses that I'm looking are about 50+ years old.

[corey r.]

when was the house built? I remember looking at new houses built in the current year, and sometimes the taxes were based on a year when it was just a lot, no house.

[1Fast AWD]

If you are buying a house for 200K, you should not have to buy a house that is 50 years old:) The taxes are usually calculated by using a factor of 1.25%. The homeowner's insurance is different as it matters on the construction and area and many other things. If you want to PM me, I can give you a pretty accurate idea of what the taxes and insurance should be. If someone gave you a quote, they should have given you the total due monthly, not just the P and I.

[Strangeholliday]

Hilllsborough county appraisers office's website.. They will usually have a estimated calculator..

I always just to be safe use a 1.25 or 1.5 % of the purchase price, although temple terrace area seems to have a pretty low millage.

[Just Dave]

The really low tax bills are probably people that have owned their houses for many years and are saved by the "save our homes" 3% cap on property tax increases.

[Qacer]

when was the house built? I remember looking at new houses built in the current year, and sometimes the taxes were based on a year when it was just a lot, no house.

A lot of the house I'm seeing in the area are built in the 1950s. That's a bit old, but I guess I'm putting a priority on location. I need a central location between Clearwater and Lakeland.

[Qacer]

Hilllsborough county appraisers office's website.. They will usually have a estimated calculator..

I always just to be safe use a 1.25 or 1.5 % of the purchase price, although temple terrace area seems to have a pretty low millage.

Yep, I played around with the millage rate using the calculator. They had a table that had a Temple Terrace millage of 19.3, but some of the properties I saw on MLS were using 21.

The values that I was getting for a $200k house was between $3000 to $4000 assuming that I qualify for homestead.

[Qacer]

If you are buying a house for 200K, you should not have to buy a house that is 50 years old:) The taxes are usually calculated by using a factor of 1.25%. The homeowner's insurance is different as it matters on the construction and area and many other things. If you want to PM me, I can give you a pretty accurate idea of what the taxes and insurance should be. If someone gave you a quote, they should have given you the total due monthly, not just the P and I.

I've seen some brand new houses in the 200k range, but the location was just not ideal to work.

I also saw some of the houses via publicly viewable MLS list that had the property owner's taxes for the previous year, so I used that number for an estimate.

The rates given to me by the banks were about the same. This was based on a $220k loan (just to play conservative). The principal and interested amounted to about $1200 a month. I used $4k for both taxes and insurance, and the calculators were showing me that I need to shell out at least $1900+ each month.

Still fiddling around with the numbers, the probable range is between $1700 to $1900+. A little hard to swallow in my opinion, but I should be able to cover it as long as I don't go on unemployment. Haha.

I haven't ran the numbers, yet, but I was hoping that the real estate taxes and the interest payments will lower my tax bracket. I may have to fiddle some more with how much money I'm going to put into my retirement plan, so I can really bring my taxable income down and still have enough income to cover the bills.

[Strangeholliday]

So the bank is quoting you a rate in the 5's correct? Have they worked with you and viewed your credit and assets etc? or are they just quoting you best case scenario?

[1Fast AWD]

Probably like most places, they just quote the best rate they would give anyone, not a specific rate. The probably said 5.25%, but they did not tell you that it is a balloon loan with negative amortization, 20% down with an 850 credit score...:lol: Hopefully the did pull your credit and gave you an accurate quote. You are in the ball park with your estimates though about $1700 or $1800 per month with PMI and everything together. Good luck on your search!!

[Strangeholliday]

Probably like most places, they just quote the best rate they would give anyone, not a specific rate. The probably said 5.25%, but they did not tell you that it is a balloon loan with negative amortization, 20% down with an 850 credit score...:lol: Hopefully the did pull your credit and gave you an accurate quote. You are in the ball park with your estimates though about $1700 or $1800 per month with PMI and everything together. Good luck on your search!!

I love that.. "i'm getting a better rate through my bank"

then 2 days before closing.. " oh my god I need your help, the bank switched rate and terms on me, blah blah blah, Can you do the loan we discussed early? "

[Qacer]

Probably like most places, they just quote the best rate they would give anyone, not a specific rate. The probably said 5.25%, but they did not tell you that it is a balloon loan with negative amortization, 20% down with an 850 credit score...:lol: Hopefully the did pull your credit and gave you an accurate quote. You are in the ball park with your estimates though about $1700 or $1800 per month with PMI and everything together. Good luck on your search!!

Yep, thanks! :-)

I'm still in the process of getting a loan. The banks didn't do a credit check, yet. I just called them and ask to throw some numbers back. So far, I've talked to Wachovia, Bank of America, and Grow Financial.

Wachovia was willing to do some sort of fudging. The person told me that I can tell the seller to pay the closing cost and then I would just add that amount to the loan. I didn't get any numbers because I'd have to supply my social security.

Bank of America had no mortgage fee plus (or something like that). I told them to assume that I have excellent credit, and the person told me that I wouldn't have to pay any closing cost. Pretty much, some "minor" fees plus the down payment. Monthly estimated for P&I was around $1200+ for a $220k home. They also claim to have no PMI.

Grow Financial had a similar estimated for P&I, but closing costs were estimated at $7000+ plus a $50 pre-approval fee and a $300 final approval fee. The total money to bring at closing would be about $19k.

For all three banks, I remember the rates being in the high 5% or low 6%.

[Qacer]

I love that.. "i'm getting a better rate through my bank"

then 2 days before closing.. " oh my god I need your help, the bank switched rate and terms on me, blah blah blah, Can you do the loan we discussed early? "

That would suck. The banks that I talked to said that I could lock the rates for 30 to 90 days. I'm not sure if that includes the terms, though.

[1Fast AWD]

The problem you are facing is that they are still giving you best case scenario. They have no idea on what your credit and what if any documentation you can provide. You are allowed to roll closing costs into the loan, but only certain percentages. If they are telling you that they can roll it all in and you can close with no money out of pocket, then I would not trust them. There is hardly anywhere right now where you can get a true 100% financing and all closing costs rolled in. I am a broker and get wholesale rates for both Wachovia and Bank of America. Not sure about Grow but I think they are giving you rates that you can not attain with a 30 year fixed rate. If you would like another opinion, send me a PM. I have one of the most aggresive lenders out there and might be able to get you something that will actually help you get where you want to be. It is hard to talk to people with no education and are just trying to suck you in with a great up front proposal. Be very careful, espeically with all the sharks in the water nowadays:)

Another idea is if you think the total payment is too high, look for a cheaper place. I know that sounds obvious but just a few minute trip to a different spot can save you a lot of money for a similar home. Good Luck either way you go!!!

[Strangeholliday]

Yep, thanks! :-)

I'm still in the process of getting a loan. The banks didn't do a credit check, yet. I just called them and ask to throw some numbers back. So far, I've talked to Wachovia, Bank of America, and Grow Financial.

Wachovia was willing to do some sort of fudging. The person told me that I can tell the seller to pay the closing cost and then I would just add that amount to the loan. I didn't get any numbers because I'd have to supply my social security.

Bank of America had no mortgage fee plus (or something like that). I told them to assume that I have excellent credit, and the person told me that I wouldn't have to pay any closing cost. Pretty much, some "minor" fees plus the down payment. Monthly estimated for P&I was around $1200+ for a $220k home. They also claim to have no PMI.

Grow Financial had a similar estimated for P&I, but closing costs were estimated at $7000+ plus a $50 pre-approval fee and a $300 final approval fee. The total money to bring at closing would be about $19k.

For all three banks, I remember the rates being in the high 5% or low 6%.


Bank of america wholesale.- True they have no PMI, but to get 100% you need to have great credit. The No fee plus program, Is where they charge a higher rate to make up for the closing costs, I've done loans before with no closing costs, basically you just jack up the rate and pay the costs through Yieldspread (if you're a broker you have to disclose how much you're making, banks do not however)

Grow financial. is macdill federal credit union, Credit union if you're already apart of them do have some good rates, but again 100% financing is going to take some great credit and assets..

The closing costs can also be paid by the seller, through whats called seller concessions.

example, Home is for sale for 220,000, You put in your offer of 220,000 and 3 % seller concessions = 6600.00

Now the seller is really only netting = 213,400, if the seller really needs 220,000 then bump up the sales price so everyone is happy

If i was buying a home and I wanted 100% financing, I would do the following.

apply for an FHA loan 97 % and then apply for downpay assistance through ameridream program for the additional 3 % totaling 100%.

Since most of florida is in a decling market, loan to value limits are being slashed by 5 % everywhere.. so where they offer 100% , its really only 95 %

Another upfront cost, is the appraisal which is typically 300 - 400 bucks..

[Strangeholliday]

An ideal borrower would be the following

above 680 score, 6 months reserves ( meaning 6 months mortgage payments in assets, whether it be checking, savings of 70% of your 401k)

[1Fast AWD]

strangeholiday has it hit right on the head. Anyone telling you that they will give 100% is full of it. The market is taking 5% LTV off of the max across the board. There is only one thing I disagree with slightly.

If your score is under 680 and are doing a full doc deal, then it does not hurt if you are in the low 600's. Other than that, I agree and again good luck!!

[Strangeholliday]

strangeholiday has it hit right on the head. Anyone telling you that they will give 100% is full of it. The market is taking 5% LTV off of the max across the board. There is only one thing I disagree with slightly.

If your score is under 680 and are doing a full doc deal, then it does not hurt if you are in the low 600's. Other than that, I agree and again good luck!!

if you're under 680. you'll take a small hit to rate.

Credit Score = Pricing Adjustment

679-660 = 0.75%

659-640 = 1.25%

639-620 = 1.75%

Below 620 or missing credit score = 2.00

also bank of america hasn't done wholesale lender for more than 8 months now..

[1Fast AWD]

I have never used Bank of America because they were not competitive compared to some of the other big names I use. My primary choice for a prime lender doesnt break down the hits like that. There is a small difference but the ysp is almost the same, so it is pretty much negated. I agree that most lenders do have a break down like you explained tho.

Also with an FHA loan, they dont really look at credit scores as a major basis, but they do look at them. A 580 will get about the same respect with them as a 640, which almost the best way to go right now.