Homeownership doesn’t come cheap. There is maintenance to cover, your mortgage, taxes, and insurance bills to foot, and of course, utilities and other must-have services.
While capitalizing on today’s low interest rates is one way to save cash as a homeowner, there’s also another way, too — and that’s being choosy about where you buy.
The Power of Property Taxes
Housing costs vary greatly by market. Not only do home prices differ from one place to the next, but so do the costs of energy, maintenance, insurance and, most notably, property taxes.
In some spots, property tax bills can be pretty hefty. In fact, in the country’s most expensive states, homeowners pay an average of $7,400 per year on their tax bill — often months’ worth of earnings for the typical worker.
Fortunately, not all states are that costly. If you really want to save money as a homeowner, settle down in one of these five states:
- Hawaii: Hawaii claims the lowest average property taxes in the nation. The effective property tax rate is just 0.30%.
- Alabama: Alabama’s homeowners see the lowest median property tax bill at just $543 per year.
- Louisiana: Louisiana’s effective tax rate is slightly higher at 0.51%, but its median annual tax bill is just $707.
- South Carolina: In S.C, homeowners pay an effective tax rate of 0.52% and $607 per year.
- West Virginia: The median property tax bill for Wisconsin homeowners is just $607.
Other low-cost states include Wyoming, Nevada, Mississippi, Idaho, and Montana. The bulk of the highest-cost ones are in the Midwest and Northeast (Illinois, New Hampshire, Vermont, Connecticut, and Wisconsin top the list.)
When you’re buying a home, it’s important to shop around: for your home, for your loan, and even for your locale. Doing so will ensure could save you thousands (maybe even tens of thousands) in the long haul.
Want more advice on how to save when buying a home? Reach out to the Premier Nationwide Lending team today.
Premier Nationwide Lending is an Equal Housing Opportunity lender. Sponsored by NTFN, Inc. 6201 West Plano Parkway, Suite 100, Plano, TX 75093 | NTFN NMLS 75333.