It is no secret that spring mark the beginning of a heavy and busy season for the real estate market. Besides, with tax season nearly ending, many homeowners, buyers, and sellers start working against the clock in order to have their real estate taxes ready on time. Besides, many buyers are taking advantage of the biggest mortgage rates weekly drop in almost a decade.
For many, location plays an important factor when buying or selling a house, as real estate taxes will influence the decision of any prospect. According to the largest online lending market, LandingTree, those who live in highly populated areas pay around $9,400 in real estate taxes. Those who live in rural areas, though, pay around $2,600. So, LandingTree examined which were the cities with the lowest rates, and here is what they found.
Ranking number one on this list of the cities with the lowest rates of real estate taxes is Birmingham, Alabama. According to LandingTree, the percentage of real estate tax returns for homeowners in Birmingham is that of 26.5%, which averages an amount of $2,035. Besides, the percentage of mortgage interest paid returns is 24%, which translates to an average of $7,455 of interests paid. Also, the average mortgage insurance premium amount lands at $1,200.
Next in line we have the city of Louisville, Kentucky, which is pretty close to Birmingham based on the percentage of real estate tax returns. Louisville’s rate is 27.7%, with an average tax amount of $2,733. The percentage of returns with mortgage interest paid is 24.2%, and the average mortgage interest paid in Louisville means $6,297. In addition, the mortgage insurance premiums here average a total of $1,227, pretty close to Birmingham.
The city of Indianapolis, in Indiana, is third in this list, still close to number 1, though. In Indianapolis, the percentage of returns with real estate taxes represents a convenient 25.6%. This means that the average real estate tax amount goes to $2,773. We also have a percentage of returns with mortgage interest paid that goes to a 22.97%, totaling $6,763 in average mortgage interests paid. Besides, the average mortgage insurance premium in Indianapolis goes to $1,210.
Last but not least, we have the city of Phoenix, Arizona, where the percentage of returns with real estate tax is 27.8%. This means that the average real estate tax amount reaches the amount of $2,835, according to LandingTree. Also, the percentage of returns with mortgage interests represents 25%, with $8,988 being the average mortgage interest. In regards of insurance premiums, Phoenix has an average $1,748 for mortgage insurance.
If you want to see the cities that have the highest rates for real estate taxes, you can visit the website of LandinTree directly.