RUTHERFORD COUNTY, TN - The value of homes in Rutherford County have greatly increased over the past 5-years. In 2022, the Rutherford County Assessor of Property finalized their revaluation of area properties, meaning they re-calculated the value of each and every property in the community. The increased appraisal value plus the increased property tax will hit local families before the year's over, as property taxes are due in October. Assessor of Property Rob Mitchell said everyone will pay more...
As values of homes increase, so does the amount paid in taxes and insurance. Many homeowners are realizing the cost of taxes and insurance is now equaling 20% of their mortgage expense, which could force some residents to get a second job...
With interest rates on the upswing, the median age of first time home buyers has risen from 33 last year, to 36 this year. An older first-time home buyer with higher interest rate mortgages will inevitably equal a financing note that follows them well into their senior years…
The extra expense of property taxes and insurance can have a detrimental impact on residents who are retired or thinking about retirement, something that Mitchell said is harder and harder for individuals to do these days.
In Rutherford County, the owner of a $500,000 dollar home can expect to pay $2,345 in annual property taxes. If the homeowner lives in the City Limits of Murfreesboro, that homeowner can expect to pay an additional $1,190, for city taxes, for a total price of $3,535 annually.
Placing property taxes, insurance and HOA fees into an escrow account to be paid with a mortgage each month can add up quickly. In fact, a lot of home-buyers fail to take these expenses into consideration when they begin looking for the perfect house. As an example of how expensive these fees are, $3,535 in taxes plus $3,200 for insurance and $100 per month in HOA fees equal $661.25 monthly or $7,935 annually. Where these figures really hurt a homeowner is in retirement. Even if your house is paid for, you will still have to pay $661.25 each and every month. Of course, that amount will increase over time as your home value goes up.
If you purchase a $500-thousand home and only put down $10,000, then your monthly mortgage, insurance, taxes and HOA bills will equal $3,599.05 at 6% interest. If you put down $100-thousand on that same house at 6% interest, you can expect to have a monthly payment of $3,059.45.
Drop Property Taxes for Qualified Seniors? One idea mentioned by Mitchell could potentially drop property taxes all together for qualified senior residents... Of course, it's only an idea at this point and for it to work, it would have to be proposed and passed by state lawmakers, which doesn't appear to be on the drawing board... for now.
