How Much Tax Can You Afford?
November 3rd, 2011 -- by JonMoultrie
This is a different question than the standard, “How much house can you afford?” Because depending on where you look to buy a home, the taxes can dramatically effect your mortgage payments.
While everyone pays County taxes, there are also taxes per municipality and those rates vary. The current rates for Memphis and the surrounding areas are:
Memphis 3.19
Arlington 1.0
Bartlett 1.49
Collierville 1.43
Germantown 1.48
Lakeland 0.0
Millington 1.23
So what does that mean for your future mortgage payment?
Suppose you want to purchase a home that costs $200,000, based on the current rates your tax amount for the different areas would be:
Memphis $1594.45
Arlington $500
Bartlett $745
Collierville $715
Germantown $742.50
Lakeland $0
Millington $615
(Click here if you would like to calculate the taxes for your home.)
So let’s compare payments for a $200,000 home in Arlington versus one in Memphis.
| Arlington, TN | Memphis, TN | |
|
Loan Amount |
$200,000 |
$200,000 |
| Interest Rate | 5.0% | 5.0% |
| Mortgage Payment | $1638.37 | $1729.24 |
(These estimates include municipality taxes only. County/City tax, mortgage insurance, home insurance, and other fees have not been included.)
There is roughly a $100 difference in these two payments. Can you think of ways you would rather spend $100? Maybe you could use it to pay your cable bill or help with utilities. Either way, it is money that isn’t tied up in your mortgage payment, so you can do whatever you want with it.
Maybe you can afford more house than you thought because you are paying less tax.
Want to learn more about living in Arlington?
Contact Jon Moultrie today for available properties and other helpful information.
Tags: Arlington Real Estate Taxes, Memphis Taxes, Real Estate Taxes in Shelby County