Question: We own a 3 bedroom, 2 bath home in the south
suburbs. Our taxes are really high and that bothers us. We heard that NW
Indiana has lower taxes. With our current savings and estimated home equity, we
would have 20% as a down payment on our next home. Our current monthly payment
including taxes is $1200. How would my monthly payment change if we bought a
similar home in NW Indiana?
Answer: We are asked that question many times by
homeowners. Knowing you have a 20% down payment makes the calculation easier.
Let’s say Munster, for example, works for you because of its proximity to the
border.
3 bedroom 2 bath quad levels range from approximately
$200,000 and currently go as high as $340,000, with the average being $240,000.
This variation of price is due to the homes age, size, condition &
location.
Using average taxes for the particular price ranges in
Munster and your 20% down payment, the $200,000
home would yield a monthly payment of approximately $1,130. The $240,000 home would have a monthly
payment of about $1,311. With the $340,000 home, your monthly payment
would be around $1,760. I used a 5% interest rate and a 30 year
mortgage term. So you have a range of $1,130-$1,760
as monthly payments for principal, interest and taxes.
You would need to look at homes only in the price range that
you qualify for and yields the best monthly payment for YOU. By viewing these homes, you will see what you
get for the money. Don’t forget to look at the whole picture; there are other
considerations besides real estate taxes. Do your homework with the help of a
knowledgeable Realtor team (like us!) and you are likely to make a decision with a happy
ending.
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