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| *Loan,banking and credit>>>credit line |
My Banker offered to lock my variable interest rate on my equity line of credit...? |
From the bank, I will not incur any fees to lock my rate, but my concern is with the property tax . In this process the bank has to re-appraise the house and since the value of the houses in my neighborhood increased by an average of $100K since I purchased it.Will the new appraisal trigger an increase in my property taxes or not. If it does I should reconsider the bank offer. I live in CA. Thank you for your help! I used to work for the assessor in San Francisco and can tell you they won't re-appraise it. The only way the county can reappraise your property is if you do a transfer to trigger it. If you transfer a piece of the propery to someone who is not your spouse or child it will be reassessed. For example: you deed 20% to your best friend - then 20% will be reassessed at the date of the transfer. Another way to get reassessed is for improvement. If you put in a swimming pool, the county might reassess a portion of you house to factor in the pool. In California, there is proposition 13 which makes your base vaule when you purchase your house. Thats why you can see places worth over million dollars with property taxes so low. If they bought the property in 1950 for $50,000, then the base vaule is $50,000. Every year the your assessed vaule goes up a certain amount to factor in inflation but it never goes up to adjust to market vaule. So no, refinancing or locking your rate shouldn't cause a reassessment in your home. But I worked for the city and can tell you there are a lot of morons working in city government who make mistakes because they don't know any better. Try the links in http://www.freewebs.com/efinans/... I dont know about CA but if appraisal goes up property taxes go up too with all the rte hikes over the past few months, it cant hurt to lock in your rate. The increase in your rate will be way more than your taxes will increase by redoing your loan. If you are interested in a fix rate and the payments are ok consider eliminating your equity line with a new first. Equity lines can get out of hand and usually have a baloon which will force you to refi later anyways..you can email me with more questions if you like at info@peakpoint.net As far as I know, the tax will go up if the new value is higher. It's better just go to local government office for exact answer. Approximately every 3-5 years the town assesor will 'assess' homes again for property tax so it is likely to go up or has over time due to the normal process. Over time a slightly higher property tax will cost you less then a fixed rate now at a great rate verses a ARM. There shouldn't be any problems with taxes unless you are changing title. the appraisel is probably an inhouse appraisel which means they do a value check with a local appraiser no one will come to your house. They just use comparable sales in the neighborhood. I'm sure the county knows how much your house has gone up. |
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