How Taxes and Insurance are Making Your Midlothian, TX Home Unaffordable
Given that insurance and taxes are just a necessary part of owning a home, you may not have given a second thought to how much they cost you. But if you total it up, you are likely spending a lot on these two home expenses and they may be making your home costly enough that you would be better off selling.
The higher cost of living in Midlothian (7.5%)1, as compared to the rest of the United States means that a larger percentage of your income is put towards expenses such as utilities, healthcare, and meeting basic needs. When this is the case, you are able to save less and have less for a down payment for your home, which means you will be required to have mortgage insurance. The rates of mortgage insurance vary depending on your principal and your bank, but you will continue to pay this insurance, and its interest well into the life of your home loan. This is especially important for Midlothian home buyers, as home prices are increasing, while unemployment remains just 1% below the national 5.2% average.
Texans pay some of the highest home insurance rates in the United States, with premiums that are nearly 76% higher than the rest of the nation2 on an average home priced between $175,000 and $200,000. Severe weather losses and risk, high insurance company costs, and several other factors are to blame, but in the end, it is the homeowner who suffers and has to pay the price.
In case having high insurance prices isn’t enough, Texas also has high rates of property tax. Sitting just under 2%, tax rates in Texas are only five spots behind New Jersey, which has the highest rates in the nation3. The high rates are because the government depends on property taxes to cover things such as road development and maintenance, building schools, funding public transport, and supporting emergency services. Not all state governments rely on taxes heavily for these mandatory parts of the city, so some may have lower rates. If you have just realized how much you are spending to hold on to your property and are having second thoughts, reach out to HomeGo to arrange to sell your house fast in Midlothian, TX. We will look after all of the details and you can have a stress-free sale that lets you start saving money instead of spending it.