NASHVILLE, TN (WSMV) - Nashville’s new budget begins today, but the property tax hike on everyone’s minds is actually still a little bit away from starting.
Real Estate experts tell us you won't feel the effect of that 34% property tax increase today so don't expect a higher bill this month, but you will see it in your tax bill in October.
They are also sharing some advice for people worried about the increase to the cost of their property.
Mortgage lender CMG Financial told News4 that a big possible concern for clients with the rate increase are the monthly payments.
According to CMG, for a home that cost $250,000, right now with the current tax rate, the homeowner pays a little over $1900. With the increased tax rate, that cost will become a little over $2600.
Experts also say the monthly mortgage payments will come from different factors. When property tax rates go up like they have in Davidson County, there are ways to reduce the other parts of the monthly payment to help homeowners be comfortable with the increase.
One of those ways is looking for a lower deductible with home insurance, looking for low fixed interest rate and lowering interest rates.
“So there are options where you can buy your interest rate down a whole interest rate point for 12 months,” said Carey Ann Cyr, branch manager of CMG Financial Cool Springs. “So that gradually gets you comfortable with making a higher payment.”
Cyr advises homeowners to look for local mortgage lenders you trust to help you figure out what’s best for you.