Taxes are higher. Yes, the tax rates on homes may be lower, but the average value of homes in Plano is significantly above the average in the whole area. This makes taxes higher, even though the rates are lower. In defense of Plano's higher taxes you will find their schools are highly rated. They get that way by investing tax money in the system. Of course, the attitude of the parents is a significant factor, and those parents who can afford much higher priced housing generally have higher standards for their children to attain.
How much higher? You cannot really go by the fact that per pupil tax expenditures in Plano are, for example, about the same as in Dallas, because the median home value in Plano is $219k versus $120k in Dallas. This makes the median tax bill (not the rate) for Plano $4540 (2.073%) versus $2380 (1.983%) for Dallas.
Of course individual circumstances will vary, and the tax rates are for the typical homestead valued at the respective median. So, don't think your taxes will be proportionate to your homes value compared to these median values.
For example, in Garland the median home value is lower than Dallas $116k, but the taxes on that house are higher at $2535. Richardson median $177k, taxes $3754, and so on.
Yes, the rumors are correct, but for the exact same home value in two different areas the taxes may be slightly lower in Plano than the other place. The difference is the average value is higher.
As to other contributors to monthly payment, taxes are the biggest, insurance is next, and if the HOA is collected in your monthly mortgage, then it would be either before or after your insurance. We can't say for sure what the HOA will be -- they vary from $0 to $200-300 per month. Their services and facilities range widely, too. Some with pools, some with events, some with a park, some only control yard appearance.
If your mortgage is higher than 80% of the value of the property, you probably also will have mortgage insurance. So, taxes, insurance, mortgage insurance, HOA - if any all add to your principal and interest payment. Some mortgage companies offer optional services, too, like mortgage life insurace, credit protection and so on.

Tue Jun 17 2008, 19:48

The same people that you are "hearing " from may be speaking about the sales tax. That is 8.25% in Plano.
Your monthly payments include PRINCIPLE, INTERST, Real estate TAXes which are addressed below and INSURANCE. The insurance will be for the house and perhaps what is called MIP. MIP is Mortgage Insurance Premiums and cover the mortgage for the lender. So while it is generally referred to as PITI (See caps above) it really includes a bit more. Home owner fees are paid by you separately so they need to be planned for outside the "monthly". Please understand that the size of the house will impact the cost of utilities. You might also want to take into consideration the distance to things that you normally visit, including a workplace and schools-the cost of gas has added to the impact of a home purchase as well. Just a few extra things to consider. Good luck with the hunt!

Tue May 20 2008, 09:25

Matthew,

If you send me an email I can send you a summary of taxes for most Metroplex cities so you can compare. This is a free service.

Sun May 18 2008, 18:55

Hi Mathew,

We are closing Plano homes at 2.073884 tax rate right now. I can send you a current tax rate sheet if you'll e-mail me.

You'll have PITI:

Principle
Interest
Taxes
Insurance

and HOA. If you have an amount in mind you'd like to spend, you can talk to our preferred lender, Katie Sparkman at no obligation. You can reach her at www.katiesparkman.com, ksparkman@houseloan.com or 817.807.5367. You can just let her know that you're looking for a home in the xxx range and she can give you a GFE - good faith estimate - that will let you know all the charges that would be applicable for a home in that range or for a particular home if you've got one in mind.

Thanks,
Terri Hayley

Sun May 18 2008, 15:03

Mathew.

Actually Plano has one of the lower property tax rates of all cities in Collin County. Here is a link...

http://www.dfwbuynewhomes.com/collin_propertytax.htm

that will show you the tax rates by city for 2006. I could not find one for 2007 but the rates did not change any last year and probably won't change this year either. If they do, it will be small.

The important thing to remember is that the tax rate is applied to the Tax Assessed Value (TAV) of the property. And this is generally what changes year to year. So, even though the tax rates may not change, the property tax on a home can increase simply because the value increases. But Plano has one of the most affordable tax rates in Collin County.

A monthly mortgage payment typically is made up of Principal, Interest, Hazard Insurance Escrow and Property Tax Escrow. In addition...depending upon the financing...there can also be a Mortgage Insurance Premium included. HOA fees are paid directly to the HOA management co. outside of the mortgage payment. But it is a good idea to consider this fee as well when determining the total payment.

I hope this helps answer your question. As always, I am here to help.

Alan Wynn
Like NO ONE Else!
214.729.5582
info@DallasHousesOnTheWeb.com

Sun May 18 2008, 13:44