Posts tagged property

Question by shuffm1:
Will a home equity loan increase my property tax?
I am considering applying for a home equity loan. In order to get the money I need, my home would need to be assessed at a higher value than it currently is because I have very tiny equity in the house. However, I have made many major capital improvements, so this will not be a problem. If the bank’s assessor assesses the property at a higher value, will my home be subject to higher property taxes? I live in NY, so the property taxes are the highest in the country, and this would be a major problem.

I have considered and researched other alternatives to a home equity loan, so I just need to find the answer to this question. I cannot seem to find it on the Internet, and I have asked two mortgage people…and they do not even know.
OK, if my property tax is based on the value of my property…let me pose this question/example:

Say, I purchased my home for $ 170,000 and put no money down. My home is currently assessed by the town/county at $ 200,000. That is what I pay property tax on. Between rising property value and tens of thousands of dollars in capital improvements, state my home can be assessed for $ 250,000. That would be $ 70,000 more than the remaining principal. Excluding any other data or costs, a 100% home equity loan would provide me with $ 70,000. Now, if someone came out and stated my home was valued at $ 250,000…this would not increase my taxes? So…the town/county would not find out about this loan or the re-assessment? My tax rate here is 3.5%. I have to be 100% sure.

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