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starburst383 t1_irgc4r1 wrote

Reply to comment by padizzledonk in [OC] House price you can afford by paying 1000/month for 30 years vs. interest rate by hmiamid

Yea, I feel like this is looking only at mortgage payment, but since property taxes are different everywhere it's not easily visualized. For example, I pay closer to 4800 I think.

Maybe a colored area behind the line showing the range of possible total payments?

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hmiamid OP t1_irgjtfu wrote

Sorry, I am not familiar with property taxes. I'm not in the US. But it looks like it's variable in time and place. And it's not compounded and wouldn't change with interest rate (at least not directly).

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quintk t1_iri5xuv wrote

Property tax in the US is paid to the town or city.

Property tax is paid once or twice a year and is a percentage of the value of the home. But that percentage changes based on the needs of the town. If everyone’s houses are suddenly worth 20% more, the tax rate percentage will probably decrease (because the town budget hasn’t increased by 20%) and the actual tax in dollars won’t change that much. Different towns will have different tax rates depending on their budgets, the property values, and whether they have other income (for example commercial taxes).

Every US state is run differently. In some states more is done by the state, or they provide more assistance to the towns. These places may have lower property taxes but there may be state income or sales taxes.

Some states provide more services to their residents than others, and as with countries, providing more services, or having more people who need them, means more tax overall. So you can have high property taxes but low or no income or sales taxes, or high income and sales taxes but low property taxes, or all three may be high!

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padizzledonk t1_irgic5q wrote

The more I thought about it the more I realized it doesn't really matter tbh because it's not really the point of the graph- which is to simply illustrate how much the interest rates matter to affordability....and it drives that point home pretty effectively

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