Homeowners are paying more for insurance and taxes than their mortgages, study shows
Scores of homeowners are spending more on insurance and property taxes than they do on their mortgages, according to a troubling new study.Home insurance prices have skyrocketed as natural disasters and the rising costs of repairs have driven up rates, while property taxes have surged as the value of homes have increased, according to an analysis by Intercontinental Exchange.The combination resulted in 32% of the average single-family mortgage payment in September going to property taxes and home insurance, the highest rate ever for data going back to 2014, the study found.The burden has been the hardest on homeowners in two upstate New York towns — Rochester and Syracuse — as well as in Omaha, Neb., New Orleans and Miami, according to the study, which was first cited by the Wall Street Journal.At least a quarter of mortgage holders in those cities spend more than half of their monthly payment on taxes and insurance, the study found.In Rochester, 35% of homeowners who took out mortgages on their properties spend more than half of their monthly payment on taxes and insurance.In Syracuse, the rate is 34%.The five cities mentioned are known for high property taxes or expensive home insurance — or both.Rochester, a city of more than 200,000 people which lies on the banks of Lake Ontario, has a median property tax rate of 2.95%, which is considerably higher than both the national median of 0.99% and the New York state median of 2.39%, according to the site Ownwell.com.The median property tax rate in Syracuse is also high relative to the nationwide and statewide median — 1.93%.In New Haven, Conn, more than one in five homeowners — 21% — pay more for taxes and insurance than their mortgage each month.Meanwhile, private insurers have fled Miami and New Orleans because claims from hurricanes and tropical storms don’t make up for high premiums.Nationwide, taxes and insurance make up more than half of the mortgage payment for 9% of single-family homeowners, acco...