Don't just buy into that refinancing is a good deal for you! It may lower your monthly payment but......
Think about this: If they say you are going to save $50 a month, ask what the cost is to do the refinance. They will tell you we can do it with no out of pocket expense for you. We will just finance your cost into your mortgage. It will cost on average $3200 to refinance. Now you are paying on $3200 for 30 years. Lets say you had paid your mortgage for 3 years, so you are down to 27 years left now your back to 30 years. You added 3 years and at least $3200 onto your mortgage. What have you gained?
If you go to sell in a few years that additional $3200 will hurt you. You would have to stay in that home for several years to save the difference on what it cost you to refinance. Banks make money off you refinancing!!
If you are in an area that you know the current market value of your home is less then it was a year ago, consider appealing your property taxes. You shouldn't continue to pay property taxes based on a higher value. Higher taxes may also make a property less appealing and affordable to buyers.
How do most counties figure what to charge a homeowner? Residential property values are based on the amount a willing buyer would pay a willing seller without duress. Key word is "without duress" this means, if you have a lot of foreclosures in your area, the county does not have to lower your value based on those sales. Assessments are generally not reviewed on an annual basis, so a property's assessment will never be 100 of market value. In Butler and Sedgwick County, the comparables are a year behind the current year that we are being tax on. It may be next year before you see a decrease in your value. I strongly feel it will be difficult to get the county to lower our properties value because the governing bodies need MONEY!
If your home value seems to be out of line here are some steps for you to follow:
1. Make sure the county has the correct information on your home.
2. Public records are available for you to find out what other homes are appraised for in your area. You can use these for comparables.
3. Make sure you are familiar with the comparables the county used to assess your value. If you know those homes where in better condition such as; updating, new carpet, new roof, and fresh paint then you need to point that out to the county. Make a list of the positive and negative items that affects the value.
4. To find out the value of your home; you can call your local Realtor request them to run comparables or pay for a professional appraiser to do an appraisal.
Last thought- taxes will go up if in your area if the local mill levy has increase. That has nothing to do with the value of your home. For example; school, road or city improvements can increase taxes.
Good Luck
I did not believe in the bail out, because I have a small business and know the government would never come by my rescue if I had to close my doors. Car companies have made millions for years; they should have saved for a rainy day just like I was told to do. I hate to see people lose their jobs and see the cars I have grown up with go away. We can't keep printing money without having gold to back it up. The car companies can file their bankruptcy and continue to build their cars. If they develop new hybrids and other fuel-sippers and convert old SUV plants into factories turning out hot cars able to compete with those from Toyota and Honda. Then maybe they will be successful again. All America's are going to have to learn to be leaner in the next few years. The UAW members need to realize in order to have jobs they need to come to grips that thirty-five dollars per hour, unbelievable work hours and great benefits are not a reality to make this happen and be successful.
A job is better then no job.
#1 real estate agent in Butler County, KS for the last 7 years. We also sell homes in Wichita, KS. We provide a moving van and virtual tours. We sell residential, land and investment properties.
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