Economy

usonian

(14,585 posts) Mon Dec 23, 2024, 11:47 PM Monday

Insurance and Taxes Now Cost More Than Mortgages for Many Homeowners

Hopefully not off the forum charter.

Archived ftom WSJ
https://www.wsj.com/economy/housing/home-insurance-property-tax-vs-mortgage-cost-43ab76ed

https://archive.is/pQSmQ

Insurers have pushed big rate increases because of losses from natural disasters and rising costs to repair homes. Surging home values in recent years, meanwhile, have lifted property taxes for many homeowners.

These ballooning expenses are rewriting the math of homeownership. In September, 32% of the average single-family mortgage payment went to property taxes and home insurance, the highest rate ever for data going back to 2014, according to Intercontinental Exchange.

The analysis is based on borrowers who use escrow accounts to pay their taxes and insurance as part of their monthly mortgage payments.

...

Nationwide, taxes and insurance make up more than half of the monthly mortgage payment for 9% of single-family mortgages. That is up from less than 4% at the end of 2014.

And in CA, HOA fees on many owned homes are sometimes crazy. Property taxes reset upon sale/purchase, but increase little until then.

A big help for billionaires with mansions that are never sold.

7 replies

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Highlight:

Insurance and Taxes Now Cost More Than Mortgages for Many Homeowners (Original Post) usonian Monday OP

It seems Florida is not the bargain it once was. Hassler Yesterday #1

There's always something. usonian Yesterday #4

And commercial property Old Crank Yesterday #2

Yes, that is the scam behind Prop. 13. SunSeeker Yesterday #3

Corporations never change ownership. Old Crank Yesterday #5

Yup. It's infuriating. SunSeeker Yesterday #6

Such homeowners would be better off bucolic_frolic Yesterday #7

Hassler

(3,782 posts)

1. It seems Florida is not the bargain it once was.

Reply to usonian (Original post)

Tue Dec 24, 2024, 01:12 AM

Yesterday

So much for no income tax

usonian

(14,585 posts)

4. There's always something.

Reply to Hassler (Reply #1)

Tue Dec 24, 2024, 02:34 AM

Yesterday

Oregon and Nevada are next to each other.

Oregon has no sales tax. Nevada has no income tax.

Old Crank

(4,879 posts)

2. And commercial property

Reply to usonian (Original post)

Tue Dec 24, 2024, 02:08 AM

Yesterday

That doesn't change hands and remains taxed at pennies on the dollar.

SunSeeker

(54,044 posts)

3. Yes, that is the scam behind Prop. 13.

Reply to Old Crank (Reply #2)

Tue Dec 24, 2024, 02:28 AM

Yesterday

It's why individuals are paying a larger and larger share of CA property taxes each year compared to corporations. Corporations never die, so they never get their basis bumped up to market value. Disney pays pennies on the dollar for Disneyland property taxes compared to homeowners in the surrounding neighborhoods. May Howard Jarvis rot in Hell.

Old Crank

(4,879 posts)

5. Corporations never change ownership.

Reply to SunSeeker (Reply #3)

Tue Dec 24, 2024, 02:48 AM

Yesterday

Court case ruled that even if all the stock holders changed it was still the corporation that owned the property so even a complete chsnge of people owning the company means nothing.

SunSeeker

(54,044 posts)

6. Yup. It's infuriating.

Reply to Old Crank (Reply #5)

Tue Dec 24, 2024, 03:10 AM

Yesterday

bucolic_frolic

(47,565 posts)

7. Such homeowners would be better off

Reply to usonian (Original post)

Tue Dec 24, 2024, 07:23 AM

Yesterday

with a high-deductible or under-insured home to reduce outgoing cash flow, and bank the savings. Unless of course disaster is imminent.

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