How Much Will Your Mortgage Be in North Carolina?
North Carolina is the ninth-largest state by population with nearly 11 million residents living mainly in the center of the state in big cities including Charlotte, Raleigh, Greensboro, Durham, and Winston-Salem.
The price of a home in the Tar Heel state has risen just over 7% between 2018 and 2019, with the median home value being $188,200 as of September 2019. In addition, homes in North Carolina tend to stay on the market for nearly 200 days.
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Factors That Can Affect Your North Carolina Mortgage Calculations
The most affordable places in the state are Sawmills, Stokesdale, Lewisville, Half Moon, and Indian Trail as it relates to homeowners insurance, mortgage payments, closing costs, and real estate taxes.
When it comes to North Carolina’s urban centers, the median home value is at about $230,000 in Charlotte while the average listing price is $292,000. In Raleigh, the median value and price is $278,400 and $335,000, respectively.
One substantial benefit to living here is that, while there is a state income tax, it’s at a flat rate of 5.25% across the board. In addition, there is no estate tax in North Carolina.
Home Prices in North Carolina
To begin with, North Carolina has a strong housing market—homes are not overly expensive and the market for homes in the state is fairly stable. The average effective property tax rate is also quite low at 0.86%, while the national average is 1.08%.
North Carolina is also notable in that it does not charge home buyers a mortgage tax.
Closing costs in North Carolina can be as much as 1.8% of the home's price, which is better than most of the rest of the US. These costs can include fees related to underwriting, processing, brokers services, document preparation, origination points, and commitment.
North Carolina Job Stats to Consider
Once dominated by the agriculture and manufacturing industries, North Carolina’s economy has diversified into the finance (its largest industry), insurance, real estate, rental, and leasing sectors. At the same time the largest U-based textile mill industry is found in North Carolina.
Another considerable employer in the state is the automotive industry thanks to Daimler Trucks and Caterpillar being based here. The state’s three large universities in Duke, North Carolina State and UNC Chapel Hill also employ thousands of people.
North Carolina's economy is robust, having a GDP of $565 billion in 2018. A dozen of Fortune 500 companies call the state home, such as Bank of America, Lowe’s, and Duke Energy.
The per capital income in 2018 for North Carolina residents was roughly $46,117, while the unemployment rate was slightly higher than the national average of 3.5%.
Job Stats (Civilian Labor Force, Employment, Unemployment)
Other North Carolina Costs That Can Affect North Carolina Mortgage Calculations
In North Carolina, homeowners on average pay almost $950 each year for an insurance policy, which is more affordable than other parts of the country. Purchasing additional insurance for the minority of homes which are located along the Atlantic coastline should be a consideration, however.
The North Carolina Fair Access to Insurance Requirements (FAIR) Plan, otherwise known as the North Carolina Joint Underwriting Association (NCJUA) is open for homeowners who can’t’ qualify for insurance coverage on the private market, which can provide basic property insurance as a means of last resort.
Home Inspections in North Carolina
You can expect to pay between $350 and $500 for your home inspection, depending on its size. You should also consider adding tests for mold, termites, radon concentrations and infrared. This data can go a long way towards helping you negotiate a fair asking price.
You will need to pay for a credit report, appraisal, attorney, flood insurance and a survey to buy your home in North Carolina. You should also think about springing for title insurance. Be sure that the seller is obligated to pay the state’s excise tax as stipulated by the contract so the cost doesn’t default to you.