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 house would need to be assessed at a higher value than it currently is because I have very little equity in the house. However, I have made many major capital improvements, so this won’t be a problem. If the bank’s assessor assesses the property at a higher value, will my house 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 can’t seem to find it on the Internet, and I have asked two mortgage people…and they don’t even know.
OK, if my property tax is based on the value of my property…let me pose this question/example:
Say, I bought my house for $ 170,000 and put no money down. My house 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, say my house 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 said my house was valued at $ 250,000…this wouldn’t 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.