Will a home equity loan increase my property tax? solution

Will a home equity loan increase my property tax?

Tags:capital improvements, home equity loan, money down, question example, value of my property,

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I am deliberation requesting for a home equity loan. In sequence to get a income we need, my residence would need to be assessed during a aloft worth than it now is since we have really small equity in a house. However, we have done most vital collateral improvements, so this won’t be a problem. If a bank’s assessor assesses a skill during a aloft value, will my residence be theme to aloft skill taxes? we live in NY, so a skill taxes have been a top in a country, as well as this would be a vital problem.

I have deliberate as well as researched alternative alternatives to a home equity loan, so we only need to find a answer to this question. we can’t appear to find it upon a Internet, as well as we have asked dual debt people…and they do not even know.
OK, if my skill taxation is formed upon a worth of my property…let me poise this question/example:

Say, we paid for my residence for 0,000 as well as put no income down. My residence is now assessed by a town/county during 0,000. That is what we compensate skill taxation on. Between taking flight skill worth as well as tens of thousands of dollars in collateral improvements, contend my residence can be assessed for 0,000. That would be ,000 some-more than a superfluous principal. Excluding any alternative interpretation or costs, a 100% home equity loan would yield me with ,000. Now, if someone came out as well as pronounced my residence was valued during 0,000…this wouldn’t enlarge my taxes? So…the town/county would not find out about this loan or a re-assessment? My taxation rate here is 3.5%. we have to be 100% sure.

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Comments (7)

boston857 said on 24-03-2010
	Not necessarily! Because the bank’s appraisal with the new value is not shared with anyone……also, typically, property taxes are assessed when there is a transaction on the property and unless you need the county’s building dept. approval, you should be fine…

RCA said on 24-03-2010
	No…your property tax is based on the value of your property.

M O said on 24-03-2010
	Property taxes are based on what the state or locale assesses your house at, not what the bank does. Private assessors often assess your house at its market value, while assessors for tax purposes use a different formula.

anicarelaford said on 24-03-2010
	your property tax will not raise until the county assesor raises the value of your home. The only thing that you need for an equity loan is an appraisal value that says you have equity. To get this, you don’t have to go through the bank that you are getting the loan from. You can pay any licensed appraiser to do it for you

rogers_andrew said on 24-03-2010
	No. The taxes are generally on 1/3 of the market value of your home in most areas. The taxes are never taken from the existing liens on the home.

Realtor Jim said on 24-03-2010

I certainly would not think it would. The amount of money that you can borrow is based on the appraised value of the home. The only way the value would go up is if it were appraised higher then it’s current appraised value. As long as you don’t borrow more than the current appraised value, then your taxes won’t go up. If you happen to get appraised for more then the current appraised value and your county tax appraiser finds out about it, then they could possibly reasses your taxes based on the new appraised value.

To verify this information, I would call your county tax appraiser’s office to see how they handle this.

RN said on 24-03-2010
	A home equity loan will not increase your property tax. Property tax is based on what the county assessor decides your house is worth, not what the bank has decided your house is worth.