When make an appraisal for a home mortgage the bias is for a higher appraised value. When engaging in a property tax appeal the bias is for finding a lower home value.
That, however, does not address the mass appraisal process that communities engage in. Mass appraisals are done cheaply. Often it is the lowest cost service that will hire college students to take the measurements and make observations. Past data is frequently rolled forward. The most expensive property on the block may be used as the point of reference. In equalities are abundant.
Consumer Reports (Nov.1992 v57 nil p.723) published that property tax records show an error rate of 40% exists in estimating property taxes.
The National Taxpayers Union ("How To Fight Property Taxes" 2004 p.1) writes that as many as 60% of all homeowners are over-assessed and not in line with their home value.
If your mortgage payment reflect a surge, it may be because your property taxes have increased. An excellent and inexpensive eBook that can guide you with the calculations you’ll need in the process can be found at http://www.housetaxax.com
According to the Appraisal Institute, problems with appraisal fraud could be addressed if lenders used only competent appraisers to begin with, and if mortgage broker and appraiser licensing standards were tightened.
The mortgage activity rate sank 5.5% in the week ending October 6, 20006. This all after surging to a 9 month high in the prior week according to the Mortgage Bankers Association. Mortgage rates shot up this week which probably dampened demand.
Even the most simple loan can be structured better. Get the structure that is best deal for you.
Always evaluate:
- * 100% Financing lowest payment 80/20 vs. 75/25
- * Lowest Payment 1-month MTA Pay Option vs. 5/25 Fixed Pay Option
- * A smoother easier loan approval by REDUCING Stated Income
- * A mortgage still qualifies for A pricing
- * Qualifying at Interest Only vs. Principal & Interest
- * Does the structure of your 1003 make for a sale-able loan?
Builder, supplies, real estate connected jobs slump as housing related employment is effected. It’s no longer boom times in the construction industry. Interest rates have settled and offer a good chance to refinance at favorable interest rates.
Property tax appeals offer an excellent means to lower your tax dollars. To keep up with additions and subtractions the municipal building department missed, the mass appraiser is contracted. Mass property tax appraisers often use the most expensive property on the block to gauge properties against. Using error in judgement often results in not making location and other value adjustments. Maybe that’s why you’re over-assessed!
At the end of the day, the person doing the measuring has hundreds of measurements and calculations in his head. He probably will not even remember your home. He doesn’t have the same recall as an appraiser making an individual property appraisal.
Inaccuracies, math errors and observation made in haste and not recorded or misplaced occur frequently. Depreciation is not accounted for. For a good do it yourself property tax manual go to Property Tax Appeal Ax You might save yourself quite a few mortgage payments when you win.
Mortgage rates fall once again as the 30- year fixed-rate mortgage rates move down. Rates have fallen for the 10 of the last 11 weeks according to Freddie Mac.
The 5-year adjustable mortgage stayed at 6%. The 1-year ARM averaged 5.46%, which is a 6-month low.
Notwithstanding, mortgage application index soared to its highest level since January. The activity shot up 17% according to the Mortgage Bankers Association.
Meanwhile, job growth is seen as sluggish even as jobless claims fall for the 4th drop in five weeks. Private employers added 78,000 jobs in September. U.S. factory orders were flat in August and CEO’s are gloomy on future of the economy. The Business Council and Conference Board said that 45.6 % of the CEO’s polled expect the economy to worsen over the next 6 months.
