Mortgage Rates Moving Up

[Gpond]

YouTube - Salinas Facing Budget Crunch As Property Taxes Drop

The city of Salinas is facing some drastic budget challenges in the coming year due to a drop in property taxes due to the faltering housing market.

 

[ERD50]

Gpond, you are missing my point.

I'm not saying that there are no States/communities that set a property tax tied directly to the price of the home. Examples to the contrary are just data points, not proof of anything.

What I'm saying is, there are some States w/o a property tax, and some communities where the property tax is not directly related to the assessed value, but rather it fits into a formula. The formula *distributes* the tax burden based on assessments such that overall value changes do not change the amount of tax collected (my County is one of those).

I don't know the breakdown between the two (or more?) methods. W/o that, you are painting with too broad a brush.

-ERD50

 

[OAG]

The budget is set and then the millage is set by the amount to provide the necessary funds from the tax base (be it RE (residential and/or commercial) or any other "base(es)". However IMO what is getting pretty expensive is how "School and other Levies" are tacked onto the RE tax bills even in states with an Income Tax. I know they are approved by the voting taxpayers (which can be approved by a very small number of actual voters due to voter apathy; sometimes less than 10% of the total registered voters can approve these things). And with school levies they always shroud it in the "its for the children" mode when it should be shrouded correctly as being for the "teachers" since the vast majority of these increases go to salaries and to fund retirement plans. Here fully 89% of the last levy went to "Teachers" salaries and their retirement plans.

 

[cashflo2u2]

Well, the thing is, when assessments rise by 10%, many municipalities don't lower the tax rate so that their "take" matches inflation plus population growth. If the tax rate were routinely set this way, you wouldn't see some of the "tax revolts" that can occur when assessments are rising beyond typical wage growth.

What's funny -- well, not "ha ha" funny -- is that assessments may rise 10% and then the city or school district cuts the tax *rate* by 1% and claims to "cut taxes" even though you're paying 8.9% more in city and/or school taxes than the year before.

I can't speak for any other states other than the one I am in (New England-NH), but here they cannot do what you postulate, e.g., tack a little on for a profit. I'll bet if you look in your town annual report you will find a page that does the arithmetic that I set forth: Total budgeted spending for the coming year divided by the aggregate assessed value = tax rate for coming year. So, if the municipal spending never changes then the assessed valuation and tax rate can go up or down but your total tax bill stays the same. Of course if the relative value of the house changes you could pay more or less than your neighbor.

 

[Elderdude]

The banks I've been watching have raised their 30 year fixed by about .25 to .50 this week.
Anyone else noticing this?

Coincidently, I applied for a refinance loan thru a broker just before Christmas. I got a 30 day lock at 4.375%, 30 year fixed, which would allow me to have $600 more a month pocket money. I know my loan was sent to a lender. The lender sent me some disclosure documents, a loan number, some credit scores, (high 700's,) but also stipulated the documents did not constitute a comitment on the loan. Coming up this week on the 30 day lock period end, but no word as yet.

 

[Bimmerbill]

Total budgeted spending for the coming year divided by the aggregate assessed value = tax rate for coming year.

Yep, I live in NH too and this is how its done. My tax bill for the second half of the year just went up $500! Our town had two floods in two years and a tornado! So, they gotta fix the roads etc.

 

[harley]

Nice avatar, Elderdude. First HeeHaw character I've seen on the forum!

 

[Elderdude]

I resemble that remark, Harley. The picture was taken in Hungary at a jazz performance. Actually, our band was booked as a comedy jazz band. We played 20's music - politically correct labeled "Traditional Jazz."

I heard from my mortgage broker today that the lender is swamped and had extended the lock for another 15 days. There is still hope.

 

[harley]

I resemble that remark, Harley. The picture was taken in Hungary at a jazz performance. Actually, our band was booked as a comedy jazz band. We played 20's music - politically correct labeled "Traditional Jazz."

I heard from my mortgage broker today that the lender is swamped and had extended the lock for another 15 days. There is still hope.

Sorry, dude! I'd have sworn that was Grandpa Jones from Hee Haw.

 

[ERD50]

Sorry, dude! I'd have sworn that was Grandpa Jones from Hee Haw.

You are not the only one!

In fact, Elderdude looks more like how I remember Grandpa Jones looking than Grandpa Jones does!

Deep announcer voice: "Will the REAL Grandpa Jones please stand up."

-ERD50

 

[cardude]

Sorry to re-hijack this thread back to a rate discussion, but I just locked in a 4.75 rate at Wells Fargo with no points for 30 years. How 'bout that?

 

[Elderdude]

Dagnabit! I was shooting for the Charlie Weaver look.

Just saw a copy of the appraisal for my home. Apparently we've lost a quarter of a million dollars in home value since we last checked it. Oh well, easy come, easy go.