Does anone have any tips or hints to offer along the line of reducing closing costs?
We are really being stretched and it would help greatly if we could reduce our closing cost at all.
In case you can’t or don’t want to open the attached, our closing costs come in at about $8500.00.
Thanks,
Eric
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most of the actual closing costs don't seem outrageous but they are sticking in a lot of prepaid items for some reason and I don't understand the Hazard insurance. I know a banker can get a blister on his writing finger but other than that and the occasional Jesse James, it doesn't seem likke a very hazardous line of work to write mortgages. LOL
The taxes on this place are atroucious! You can own a much more modest hopuse in many places for what the monthly tax bill is on this.
To try reducing your front costs at closing, see if they really need that much for prepaid taxes and insurances.
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Pif,
The 'hazard' ins. is homeowners I believe. I'll have to check that and why it needs to be paid up front. I was thinking along the same lines as you.
Taxes were a guess, from what we are looking at could be anywhere from $1000.+ to around $3000./year. If you think that is high you should try living where we are running from......run down two family we're in is near 10k, friends up the street at over 6k! Values here have nearly doubled in the past 5yrs or less! (Putnam County)
More modest? 150k ain't buyin much either. I could post the listings. We're looking at 2000 sq ft or smaller, probably one bath, hoping for a few acres or more. Hey this is NY remember?
Thanks, keep your thinking cap on....
Eric
Well for one thing don't pay the $1000 state taxes. The sent Jesse to jail for trying to pull stunts like that. But I guess that the state can get away with it.
Somethings to check out. $4800 property taxes is very high on a $150k house. You might want to check with the county and make sure that is right.
Also I see that they have property insurance in there for purchase (not just the amount for escroll). I have always bought it direct.
The title insurance seems very high around here I think that it would be about 1/3 to 1/2 that amount.
There are a couple of junk fees. The obvisous one is the overnight and "tax service fee". Possilbly the document preperation fee and/or processing fee.
Also the interest rate is HIGH. Bankrate is showing 5.25%. But that is on a 20% loan. You have 10%. If that is why it is so high you might ask about an 80% 10% loan.
http://www.bankrate.com/brm/default.asp
But based on that I would shop around. Also check some other places for the cost of title insurance.
Bill, were you serious about the state tax?
Property tax will be lower, just took a guess on that one see above post.
How can I verify the actual cost of the title insurance if possible?
We're doing an 80/10/10 no doc good scores but issues put only one name on the papers. How are we doing now?
How married are we to this broker, recommended by a friend?
Thanks for the help,
Eric
I did notice that these are all estimates.
The thing to do is call and ask specifically about each item.
"What is this for"
" How can I reduce it"
"Do I have any alternatives to paying this"
For instance, on the homeowner's insurance, if you provide proof of insurabiulity or open account to cover it on you own, That item should be deleted. If you prove from the county records that taxes are half of the estimate, then it automatically reduces - and I still can't imagine why they put in there for prepayment of this. Ask if that is bank policy or law of some sort.
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
If you prove from the county records that taxes are half of the estimate, then it automatically reduces - and I still can't imagine why they put in there for prepayment of this. Ask if that is bank policy or law of some sort.
Good point, I believe that number represent the taxes we will owe to the seller as we would hopefully close the end of July. Hence six monthe worth of taxes. Again our guess at that point was wrong. Most of the properties we are looking at are 3k or less per year.
Thanks,
Eric
GUIDELINES FOR ANTICIPATED CLOSING COSTS FOR BUYERS & SELLERS
FOR THE SELLER:
1. Realtor fee.
2. Mortgage principal remaining on the property.
3. Seller's fee for his/her attorney.
4. State's Property Transfer Tax: $4 for each $1,000 of the Selling Price.
FOR THE BUYER:
1. Application Fee - Charged by all banks and mortgage brokers. Approx. $150.
2. Appraisal Fee - Fee depends on purchase price. Approx. $300. - $900.
3. Real Estate Tax service fee - $85.
4. Mansion Tax - 1% of purchase if purchase price exceeds $1,000,000.
5. Lender closing fees - Covers origination fees not paid at time of loan.
6. Prepaid Interest - Per diem interest paid on day you close the loan if closing not on the first of the month.
7. Property tax escrow advance- Lenders often insist on paying property tax on houses for which they issue mortgages to assure that the taxes get paid.
8. Attorney's fees - In addition to writing checks for his/her attorney, the buyer also pays approximately $600. for the bank's attorney.
9. Adjustments - Check must go to seller for any heating oil left and any property taxes paid in advance.
10. Balance of purchase price. Purchase Price less any down payment(s), less amount of the mortgage equals balance to be paid to the seller.
11. Mortgage Tax - NY State's mortgage tax is 1% of buyer's mortgage amount; buyer pays 75% of tax, lending bank pays 25%.
12. Title Insurance - One-time cost based on Selling Price of property; approximately $3.80 per $1,000.
13. Mortgage Insurance - Insurance to be paid by buyer to bank covering mortgage in the event the buyer defaults. Bank will not make loan without this insurance. Cost: $3.17 per $1,000 for mortgage of $100,000 - $500,000. Discount given if Title Insurance taken with Mortgage Insurance.
14. Mortgage Title Fee - based on purchase price and mortgage amount (see your Attorney).
15. Tip for Title Closer - optional - typically $175.
16. Underwriting/Processing Fee -A one-time fee, typically $250. - $600.
17. Flood Certification Fee - $160.
• This Checklist is intended as a guideline for Buyers and Sellers and is subject to errors and omissions. All entries should be independently verified. This disclaimer applies to every entry included.
August 26,2003"My life is my practice"
A few clarifcations. For those lurking a some of these items will be different in differnt parts of the country due to different laws and customs.
The most glaring is the taxes. That inluces the transfer tax, mortage tax, and mansion tax.
But also the property taxes. Where I live the property taxes are collect in arears so the sell will give the buyer an adjustment for the amount of time that the seller owns the property.
And I believe that the custom is that the seller pay the title insurance.
Also title companies are used for closings (and the title searches and insurance). There is no attorney's fee, but that is built into the title company fee.
From Katrina- Sorry I should have said- "New York" (Long Island specifically) closing costs."My life is my practice"
How married?
How much of your money does he have?
I thought this was a bank loan direct. The way a broker is supposed to be making money is to serve your interests. Doesn't sound like he's working too hard at it if a form with all these high "estimates" is all he has done.
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How married?
How much of your money does he have? I thought this was a bank loan direct. The way a broker is supposed to be making money is to serve your interests. Doesn't sound like he's working too hard at it if a form with all these high "estimates" is all he has done.
No we went through a broker that a friend of my wife recommended. I am asking these questions to arm myself with the right questions to present to him. Fact finding asit were. Paid him for the credit report up to this point. Hasn't suggested we will need to pay him anything.
I have a feeling that we may do a 'little' better through somone local to the area we are looking in.
First time we've done this. I thought I knew my way around this territory better than I do. Nothing like getting input from those with experience!
Thanks again,
Eric
The fact gathering habit will both educate you and save you money throughout your life. It is a good one to foster.
One of my better customers does this in a very friendly way, not letting anyone feel like he is interrogating them at all but always getting to the bottom of things.
He is a major player in real estate investments. I have been working in his home and overhearing his phone conversations several times, enough to have studied his style and refer it back to how he has played me and other contractors in negotiations.
He simply askes in the nicest way, What is this for, help me understand what I'm paying for here - no intention to chop your legs out from under you but if I don't need it, why is it here.
There are other things that he knows fromn experience he dpoesn't want to do and simply says, I don't want this, get it out of here.
Of course, he haas more clout than we do, but the technique is interesting. Simply by asking a Q, I have seen other contractors ( the landscaper or instance) voluntarily remove a cost line or "throw it in" for free.
When he did it for/to me, it was an opportunity to educate him why I needed to do something and impress him with my voluminous knowledge, LOL.
Applying same principole when I am shopping for insurance, I have ended up learning more and refining the poloicies by adding or deleting items instead of blindly accepting the boilerplate standard offering.
So by askin, asking, asking, you will find people offering to reduce or eliminat certain items
Glaad to see Katrina in here. I'll bet a phone call to her would realy be enlightening.
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
Glaad to see Katrina in here. I'll bet a phone call to her would realy be enlightening.
Yeh, the minute I saw that thread I called her over.saw the twinkle in her eye.....tween tennis and real estate I'm not sure if she ..........well, they better have tennis at Rhode Fest at least cause I'm bettin' Mikes not selling his house.
631 659-3007 for real estate advice or chants.
See you there
Be there or be square (get it...oiy)
andyMy life is my practice!
http://CLIFFORDRENOVATIONS.COM
Is that your home phone number, or Katrina's office number?
Never know when I might have ta call and check on ya again..............(-:All government, in its essence, is organized exploitation, and in virtually all of its existing forms it is the implacable enemy of every industrious and well-disposed man. [H.L. Mencken]
Home number is 631 659-3007.
I'd be happy to call you one evening just to shoot the breeze.
I pay $34 a month phone bill which includes taxes through cable. 24/7 includes all the US and Canada.
Pretty cool, huh?
My Mom makes me call her back from Florida...lol. She says I have no phone bill with this plan.
BE well Ron
andy
PS..
Wednesday's the big day here. I have 9 guys coming to help me finish the second floor. takes just too long with one metal head Pakistani kid and an old Hinju.I'm using the Hindu part to overcome the Jew part and just gonna spend the money....lol...see how well that works out?
We really should all combine all the good parts of all religions.Wouldn't ya say?
Wait a minute....I know what a combine in yer neck of the woods is...lol
Well back to work,,,,Wide plank flooring day...Very awesome look./*My life is my passion!
http://CLIFFORDRENOVATIONS.COM
Yes, that asking questions in the "fact finding mode" vs the "accusation mode" is a very very powerful tool.
One that I know well, but keep for getting to use.
Another example in construction. Instead of "why did you put the door there" ask what are the options or trade off if we moved the door there.
"We're doing an 80/10/10 no doc good scores but issues put only one name on the papers. How are we doing now?"
I really don't know. All I can suggest is that you shop around, but I think that the no doc's might add a point and with the 80/10/10 that might be about right. It is not real high rate, but not the best rate for 80% with a clean credit report.
I found out a couple of years ago that, at least some, mortgage brokers work on a commission and if they can get higher rates then they get a higher commission.
You are just renting money so check around.
Likewise check with the title company about the cost. Call a couple of them. AFAIK the buyer can pick the title company. But that might vary by area.
Just closed 2 house deals in the last month. Bought one, sold one. I agree with everyone on the fact the estimates look high but they usually are because like any estimate everyone is happy paying less not more. Frankly there are fewer fees on your sheet than I have seen on many before so except for the amounst of tax estimates I would say there is not much to work with there.
And in this day and age those "fees" are well in line. Keep in mind to the interest money is based on loan close to the first of the month generally. Try to close later in the month and you will reduce the amount needed. Also shop your own insurance. Simple phone call. I think the taxes are quite high vs value of the house also. Call the court house to get a better picture or the taxes should be listed for each house in the multiple listing book so it would give you an idea of comperable homes. DanT
Thanks Dan,
The broker actually mentioned closing late in the month. Makes me want to believe he's shooting straight.
As I mentioned in previous posts, the tax thing was a stupid guess. Will be lower, hopefully less than 3k/year.
Thanks for your thoughts,
Eric
I'm not a realtor I just buy and rehab houses part time and am a landlord. I use a mortage broker instead of a bank. Its important to ask their fees. They should be able to tell you what they charge up front.
I have seen closing statements that have mortage broker fees from $500 to $8000. It is strickly what the market will bare here. I assume it is in your state also. Better safe than sorry as you'll pay for that mistake for a lot of years.
I do like a broker as once you find a good one they have your best interest at heart. But finding a good one is the same as trying to find a good realtor. Good ones are in the minority.
The ones that know there stuff like Katrina obviously does and aren't simply a soccer mom trying to work her own hours are tough to find but worth the search. Even if you are only going to buy your personal residence knowing a good realtor will pay off as they stay in the business (again like Katrina) and you may want to move up later. DanT
I think your no doc classification puts your situation more in the sellers market than what you'ld prefer = a buyer's market
but we just went through a refinance - maybe a different dog altogether - and my wife demanded I try di tech which she saw advertised on TV
closing costs $395 no if ands or butts and rates to match the best!
they make their money over the duration - service the life of the loan rather than having to get their cut then selling your loan ** they are owned by General Motors
The best thing ( i hope) i ever did was learn how to borrow money and establish a relationship with a bank / bankers ... they kicked me upstairs to "personal banking" but there is little you can do that will help you more than to learn peoples names and talk to everyone at the bank (not just the tellers but that helps also) I often remind them "the bank" (as my personal bankers have left the bank and asked that i "follow" them...) that i dance with the one that brought me... I'm loyal to a fault and I impress upon them that fact and i never nit pick over small fees, have everything (all payments) auto withdrawn from my accounts and I try to keep them in the loop of current and future projects... I send them business... I put their name on signs "construction financing provided by........" they have all my information i keep it current with them and most loans are done in less than a week.... I've never considered using a broker... never thought to... I don't "shop rates".... if 1/2% will make or break one of my deals i don't need to do it anyway..... i have a closing coming up and it's nothing more than adjusting the rate down on a current loan and they are charging me $500 it has to cost them more than that in paperwork and the time i know they have spent on it... (i'll save more than 3x that on the first payment)... I do hate that I don't have a "back-up" bank but what can i say...
but... if i was you I'd go to a local bank that doesn't sell it's paper give them all my business and get to know the people in the bank... and let them get to know you... & learn the vocabulary of banking, real estate & money...
pony
I do business at that same bank, but they can't serve the whole country!
;)
I hear those closely heldand managed banks are getting fewer and fewer all the time
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
ponytl,
While I appreciate your situation it doesn't always fit in every location. Here we have 2 "local" banks. I worked with one for 5 years, then the president went through a mid life crisis of sorts and turned over 1/2 the staff. Next thing the people I worked with were moved to other areas or quit entirely. I went from good customer that always makes us money to who?
The other is a local bank but their policies and percentages are so tight with no flexibility that no business person of any size works with them on projects. They do mainly car loans etc. So I use a broker. I think you are right if you can build that relationship it is certainly to your advantage and I agree on the nit pick of small fees. It is wise if you are using money as a tool to look at the big picture. But the friendly personal banker is not as available as they once were. DanT
The title insurance is a lot like extended warrantees on automobiles - negotiable and extendable. I had a lawyer tell me that half of the title ins fee goes in his pocket and he discounts it to regular customers but the one timers pay the full retail on it.
So you are right about shopping it.
Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!
I found out a couple of years ago that, at least some, mortgage brokers work on a commission and if they can get higher rates then they get a higher commission.
I figure that IS how they make they're money. We (I) have a blemish on my credit so we are doing this in DW's name. It is a no doc loan so as long as we think we are getting a fair rate we don't want to stir the pot too much.
Will check the title ins. though.
Thanks,
Eric
all I know is our realestate agent took our list of bank closing costs ...
we requested the list at his request ...
and he scratched about half the list off ...
and wrote in reduced numbers for about another quarter of it ...
said to fight like hell to get things closer to his list.
In the end ... we saved about 25% off their list.
Some of the stuff they laughed at .... on other things .. they caved.
Really worth having a good agent.
Jeff
Buck Construction Pittsburgh,PA
Artistry in Carpentry
Thanks Jeff.
I'm thinking this may happen once we get into the shopping process a little further.
BTW I enjoy your posts about tile work as I do a significant amount myself. I had just completed a glass mosaic about six weeks before the article in FHB. I will post some pics soon.
Thanks,
Eric
Hi! This is from Katrina (Andy's C.'s wife)- Realtor for 24 yrs- Is this in NY? NY closing costs exceed many other states- except when we were in CA looking there they actually had more & alot more disclosures, too. But except for high taxes at least we don't have too many floods, mudslides, forest fires, & earthquakes! Everything's relative right? When I read what your taxes were ($4800?) I thought they were low. But as Dan T (he must be a Realtor, right?) said- after you close- if they are not appropriate i.e. much higher than other like properties in your area, then you can try to grieve them. Many closing costs are standard costs set by NY State- (title costs/mortgage tax) Dan's right about the time of month that you close in. Some banks will let you pay your taxes directly to the town (in which case they wouldn't need to take an escrow) but many (most) won't. The prosessing fee ($295) might be negotiable- that's just a junk fee for doing the paper work- the underwriting fee/ bank attorney fee- you pay the bank's attorney to close for you. $495 isn't exactly out of line- I've seen higher. Homeowner's insurance you can shop on your own, but you need to prepay the first yr & bring the paid policy to the closing. Since taxes are prepaid in NY (at least they are here on LI) you have to repay the seller for the taxes they've already paid (& then when you sell, you get paid back, too). If the house has oil heat or propane somewhere- you also will have to repay them for whatever is left in the tank. All those things are called adjustments- that your attorneys figure out at the closing.
As far as the type of mortgage & the rate you're getting- that's the thing that you can shop around for. Lots of banks charge more for a no doc loan, but not all. A popular type of mortgage available now is called an interest only. We have that kind- interest only 5 yr @4.5% from Washington Mutual. I liked it because I wanted to keep our monthly payments as low as possible for the time Andy's working on the house & besides which in the first yrs of an amortized mortage you're paying mostly interest anyway. But the type of mortgage you get should benefit your own personal needs & comfort/risk level.
As far as a mortgage broker goes- if you haven't given him any $ yet you can go anywhere you want- I've had customers who've even applied at two places at the same time (of course they had to pay for that). Anyway be glad there's no mansion tax on a $150,000 house!! (that would be 1% of the sales price paid to NYSTATE for no particular reason for any house selling for 1M or up.)
If you want a recommendation the best (most honest etc) mortgage brokers I've come across are: Larry Collins (Blue Star Mortgage) 516 921-6666 & John Vlogianitis (Wells Fargo) 516 224-8926.
Good luck, best thing you can do is buy a house!!!
My life is my practice!
http://CLIFFORDRENOVATIONS.COM
Hi Katrina,
Andy mentioned you months ago in responce to a similiar ppost from me. Thanks for taking the time to compose such a comprehensive reply.
This is NY. The tax thing was way off, hopefully will be less than 3k/year.
As I said to Piffin, I am gathering facts prior to any negotiating we may do with the broker lender.
The loan you have sounds very interesting especially if one is not planning on staying in the house more than a few years. This sounds like a good loan with which to purchase a fixer with the intention to sell, is that right? Are you guys living in that house while you are fixing it? We know that we are going to end up in something a 'little' derelict, and have not ruled out the possibility of a construction loan. Care to comment on that?
I read a little about asking the owner to pay the closing costs or rolling them into the purchase price. Is this something that can actually work or is it along the lines of the No Money Down schemes? I assume that this would require purchasing either an undervalued property or one that has received a 'high' appraisal. The intent of this post was to see if there was a way that we could whack a few thosand off the CC as we are really tight and wish not to extend the lease where we are.
Thanks for the broker info. I've heard good things about Was. Mutual and God awful things about Wells Fargo. What has your experience been.
Thanks again for your thoughts, they're greatly appreciated.
Eric
Edited 2/28/2004 8:51:11 AM ET by firebird
Edited 2/28/2004 8:55:52 AM ET by firebird
I'm no expert but I've bought a 2nd home and refinanced my primary residence in the last 6 months. I dealt with a mortgage broker (in MA) who offers a no/no (no points, no closing costs) ... you still have to pay pro-rated things like taxes and interest. I know I pay a small penalty in the rate, but not much - all have been 3/1 ARMS at 4% or lower. I did a ton of research before settling on this approach - talking directly to banks and at least a dozen other brokers - this is a small broker who isn't making a lot on any transaction but makes it up in volume. She pays for the lawyer and appraiser herself, along with all the random little fees.
I'm working on another deal now - decided I wanted my own lawyer because it was a little more complicated and risky. She said 'no problem, I've budgeted $400 for atty fees, I'll give it to your lawyer if he'll close both ends of the deal'. Since my guy charges $500, I have to kick in $100, but now I have the comfort of my own guy and we aren't paying 2 lawyers.
I just pulled the settlement charge page from the house i bought:
the broker got $4840.50 (about 1.5% of the loan amount) from the bank as her fee ... from that, she paid:
$475 appraisal fee, $20.22 credit report, $150 title exam, $400 atty, $1762.50 title insurance, $320 recording fees, $65 municipal lien certificate, $$25.37 town lien certificate, $150 survey, $25 courier, $35 final rundown fee, total of $3428 ... so she made about $1400, unless of course there is some other undocumented secret kickback.
I've never paid hazard insurance.
Don't know where you are located, but the Sunday paper here always has a table with a bunch of brokers, phone numbers, etc. ... I just picked the ones showing the best deals and started calling. Bottom line, I think the closing costs in your note, combined with the rate, are much too high.
Good luck ... Bill.
Thanks Bill,
I know I pay a small penalty in the rate, but not much - all have been 3/1 ARMS at 4% or lower. I did a ton of research before settling on this approach
3/1 ARMS
Ok, I know this is some kind of ajdustable rate thing...care to elaborate?
From what everyone is saying it looks like we have some shopping to do.
Eric
3/1 ARM: Adjustable Rate Mortgage, fixed for 3 years, can go up as much as 2% every 1 year thereafter, to some maximum amount (maybe as high as 12%).
It makes sense if you think you'll be selling or refinancing within 4 years. I've had nothing but adjustable rate mortgages for the last 15 years and found that it has worked to my advantage. Of course, if interest rates ever go super high again, and stay there, I'll get burned. You have to know your level of tolerable risk.
Last week my broker called and asked if I wanted to refinance one I did a year ago, at the exact same rate. My initial reaction was that she was nuts, but with no points, no closing costs, it costs me nothing and re-sets the 3 year clock where the rate is held fixed. I'm doing it.
Bill.
Thats a good faith estimate that realators hand out .
The taxes are way too high . Run as fast as you can !
Tim Mooney
The taxes are way too high . Run as fast as you can !
Almost everyone who took the time to respond to my initial post (Thank you) commented on the taxes. By the second or third post I realized that I had made a mistake by not being forthcoming with the fact that the tax number was generated by me and it was WRONG. Not a lot but it was wrong. Again the taxes on this property would be in the vicinty of 3k/yr depending mostly on how much land comes with the house.
What astounds me is how floored every one is by a number such as that! That is low still for many areas of NY. We live in one of the highest taxed states in the USA. I have clients that are paying 30k or more per year for a 3-5 bed/3-4bath house on LESS than an acre of land. That is correct. $30,000.00. I must admit though that I am equally at a loss as to how much any one else would be paying in their home state.
For some reason I found it disturbing how everyone was so surpised at the taxes.
Carry on and thanks everyone.......Andy, you and Katrina are the best, the call is coming in this week.
Eric
Well, if you insist I am willing to make you weep. We live in Ohio in a town of about 40k. My real estate taxes are about $700 a year. We used to live in the old money section of town where taxes were real high, $2200 a year. But now we just live in a middle class neighborhood as we didn't like the high taxes from before.
I know what your thinking. Man, how does he stand all that overhead? Well budgeting helps. :-) DanT
The only real negotiable fees on the part of your mortage broker are the doc prep fee, the processing fee, and the underwriting fee, although the underwriting fee may be being passed on from the secondary market money source. The other fees are all passed on by a third party, such as the title insurance and appraisal.
It's customary here for the seller to pay for the title search, but the buyer pays for the title insurance and 1/2 of the closing costs. Other than the attorney review charge, which seems high, and the taxes, which you acknowledge are high, the rest of the fees seem in line. The attorney fee, depending on the market you're in, might have some negotiating room.
The 6% rate on the no-doc loan is in line with the last one I've done. I'm a commercial lender, but do the assorted home loan for my customers.
From Katrina- Well the only thing I can say though is that one of the benefits of living here besides the beauty, great schools, proximity to NYC, etc. is that people can retire on the equity in their homes.Self employed people like ourselves can depend on the solidity of the value of our homes even in a down market -which we haven't seen lately. I know we pay for the priviledge. And as fate would have it we found a way to buy a house 23 yrs ago depite the 15-21% interest rates & traded houses a few times."My life is my practice"
Katrina,
No justification needed. We all make our choices and pick our poisons. It is in expensive to live here but I also can't charge the rate a lot of people on the board get. Its all relevent. It is beautiful here to in its own way. Creeks, a few real covered bridges still in use, rural setting. Low crime, a murder about every year or two. But the pizza isn't very good. :-) DanT
He pasted my post but I will respond to you .
I dont think its sqaure and fair here yet. Lets say my house is worth 200 thousand here and a half million somewhere else which is true as a matter of fact. I still just pay 700 and change . If I owned a house worth half a million , I would expect a high tax bill. But on 150,000???????? This is not about where we live on this one , its tax robbery!
I sat down and figgured it and it doesnt pan out .
Tim Mooney
New Jersey and New York (excluding the five boroughs of NYC) have the highest property taxes in the country. A $150,000 house in my town (there aren't many) would be paying approx $3600 in taxes in 2004. 20 miles to the east of me, it would be more like 5000. But there aren't really any $150,000 houses left there. The norm on a 250-400K (average value around here) house is around 7500-10K.
But I agree with ya, it's robbery alright. But also a fact of life here.