Homeowners preparing for property tax increase
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NASHVILLE, TN (WSMV) — Nashville’s new budget begins today, but the property tax hike on everyone’s minds is actually still a little bit away from starting.
Property owners will see that 34 percent tax increase take effect the next time the value of their property is assessed, which will be in the next fiscal year.
Even though the budget goes into effect today, real estate experts are sharing some advice for people worried about the increase to the cost of their property.
Mortgage lender CMG Financial told News4 that a big possible concern for clients with the rate increase are the monthly payments.
According to CMG, for a home that cost $250,000, right now with the current tax rate, the homeowner pays a little over $1900. With the increased tax rate, that cost will become a little over $2600.
Experts also say the monthly mortgage payments will come from different factors. When property tax rates go up like they have in Davidson County, there are ways to reduce the other parts of the monthly payment to help homeowners be comfortable with the increase.
One of those ways is looking for a lower deductible with home insurance, looking for low fixed interest rate and lowering interest rates.
“So there are options where you can buy your interest rate down a whole interest rate point for 12 months,” said Carey Ann Cyr, branch manager of CMG Financial Cool Springs. “So that gradually gets you comfortable with making a higher payment.”
Cyr advises homeowners to look for local mortgage lenders you trust to help you figure out what’s best for you.
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