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Updated almost 6 years ago on . Most recent reply

User Stats

452
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672
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Scott Passman
  • Rental Property Investor
  • Batavia, IL
672
Votes |
452
Posts

Mortgage debt vs. property taxes

Scott Passman
  • Rental Property Investor
  • Batavia, IL
Posted

I am looking to move into a different primary residence in order to take advantage of lower housing costs in nearby towns.  Here is the question I want to bounce off everyone to determine if my thinking is correct or not:

Hypothetical example: If I'm looking for a home that will have a monthly payment of $1500, I am placing more emphasis on homes that would have a lower percentage of it being mortgage cost with the rest as PI. My line of thought being that at least I could "lock-in" the mortgage (which I can control) at a lower cost to help keep my overall payments from getting out of control.  If I found a home with a higher mortgage cost but had low taxes, I believe I would be placing too much out of my control because taxes could increase at any time which would then leave me with a high mortgage cost +high taxes and balloon my rate. 

Am I thinking correctly that I can help limit the impact of property tax hikes by focusing on locking in a lower mortgage cost vs. taxes to better take advantage of inflation over time?

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