by haytham fox
Question by TraderPat: Does the property tax amount change if you refinance ur mortgage and the appraisal of the house is now higher?
My Main issue is to find out if its worth refinancing a house, because I dont want the property tax to change from a 200K house amoount to a 800K house amount. Please include sources if available. Thank you.
Answer by maimai
good question… i’ll wait to see the answer
Give your answer to this question below!
Property taxes are based upon the assessed value by the municipality you live in (i.e city, county, or state, etc)
So a private appraisal from a loan company should not have any impact on your taxes. Ask your state’s deparement of Revenue to be sure though.
Refinancing should not impact property tax. In many locations property tax is based on value. Taxing authorities usually keep track of the general value of a property apart from what it really appraises for and assesses tax based on that value.
the county where the property is located determines the property tax value. the appraisal value by the mortgage lender could be higher (most of the time) or lower but it does not affect the property tax amount.
County Tax Assessors do not rely on appraisals nor current values to determine your tax basis. The lenders rely on this information in order to gage the extent of the loan amount. If your home is being taxed on a value of $ 200K, any increase to that amount will determine a new base. If you’re re-financing rate and term, your first mortgage shouldn’t increase much, so there will be very little increase in taxes. However, if you’re cash-out refi-ing lets say, $ 200K more, your new base will be $ 400K. I know as fact that HELOCS do increase your base because this second is recorded and its addition to your value is obvious. (Even if you don’t draw from your line!) Appraising is not an exact science and we all would challenge anything Mr. Tax collector told us to be value.
Typically a refinance should not impact your taxes. Generally the taxes would only be affected if you make significant improvements that raises the assessed value or in the case of a sale.