How Much Will Your Mortgage Be in Virginia?
Virginia is the 12th most populous by way of its more than 8 million residents, with most of them living in the northern and eastern regions. The largest city is Virginia Beach with more than 440,000 residents, followed by Norfolk, Chesapeake, and the state capital of Richmond. Also, see FHA Loan in Virginia for details and requirements for a home in the state.
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Factors That Can Affect Your Virginia Mortgage Calculations
The median home value in Virginia is roughly $260,000 and has been on the rise since 2012. Meanwhile, home values in Arlington and Alexandria (both near D.C.), are $695,000 and 785,400, respectively. The state capital of Richmond has home values of just over $218,000.
Virginia Property Taxes
Because of its proximity to Washington, D.C., the state of Virginia has some of the most valuable property in the nation.
On the other hand, homeowners don’t have to worry about paying exorbitant property taxes—the effective tax rate is only 0.8% which is much lower than the national average. Virginia counties (which are the ones setting the property tax rate) can have taxes even as low as 0.42%.
Your property taxes are assessed every two to six years to find its fair market value. While your property taxes are essentially based on your county's nearness to D.C., overall the state boasts quite low rates.
Even more beneficial is the fact that Virginia homeowners can deduct their mortgage interest on their federal income taxes, up to $1 million. Homeowners can also double their deductions when they include mortgage interest on their income taxes.
On average homeowners in Virginia pay $785 per year on insurance. Homes nearer to the coast will need to factor in the additional cost of flood insurance on top of a homeowners insurance policy.
Virginia Closing Costs
Closing costs go towards a number of administrative fees such as the mortgage origination fee to credit report costs and government recording fees. In Virginia, these costs typically amount from anywhere between 1.4% to 3.7% of the home’s purchase price.
Home Inspections in Virginia
The responsibility of uncovering any defects in a prospective home falls on the buyer, as even a detailed seller disclosure form will not give you all the information needed to make an informed decision.
Since 2017, home inspectors must be properly licensed in the state, which means ongoing professional training to fulfill their job requirements. They will cost you about $300 to $400 depending on the size of the property, and additional mold, termite, radon, or asbestos tests will run you extra.
Your mortgage lender will be owed certain fees when closing time comes, including origination points, broker fees, commitment fees, document preparation, processing, tax service, and underwriting. You’ll also need to pay for your credit report, flood certification, and any survey and appraisal fees.
Title insurance is another fee but can protect you from hidden problems or risks related to your ownership rights. Lenders often require homebuyers to purchase a policy insuring their mortgage loan.
Lastly, real estate transfer taxes and state recordation taxes are typically included in closing costs.
Virginia Job Stats to Consider
Virginia offers plenty of suburbs near the nation's capital, to which countless works commute each day of the week. There is also a considerable military presence in the state—more than 25 military installations can be found in Virginia in fact. Numerous government contractors are located in the state as well, adding to job opportunities.
The state's unemployment rate in September 2019 was just 2.7%, significantly lower than the national average of 3.5%.
Job Stats (Civilian Labor Force, Employment, Unemployment)
Other Virginia Costs That Can Affect Virginia Mortgage Calculations
PMI in Virginia
As with the rest of the nation, PMI, or private mortgage insurance, is an insurance policy designed to protect your mortgage lender should you be unable to pay for your mortgage. This is a monthly fee added on to your mortgage premium for all conforming conventional loans for which less than 20% was put down.
Of critical importance is the fact that after 20% equity has been built in the home, you can cancel your PMI.
PMI costs depend on both your loan-to-value ratio, which is the amount owed on your mortgage when compared to its value, and your credit score. Buyers can expect to pay somewhere between $30 and 70$ on every $100,000 borrowed for PMI each month.