If you have a property that is taxed well below current value and it needs to be redid because of rate anyway, do you maximize the 75/25 or just refi the current principal amount? I'm fine with taking all the cheap money available, but hesitant if it's going to forever and immediately jump my property tax amount. Does that new lien amount get reported somehow? Any other benefits or risks one way or another that I'm missing?

Agree with JJ. Lien has nothing to with tax value and no one is going to show the appraisal to the tax man.

Not sure I follow the logic here. If you're paying taxes on $200k and are able to borrow $350k against the property which ends up in the public record I'd probably prepare for a tax increase. Just example numbers, but I'd prepare for it anyway. Borrowing or not, they'll find you eventually.

If they are gonna find him they will regardless of the new lien. Liens have no relationship to value but this is a bit unusual. Most folks don't have this issue.

SteveBott said:

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If they are gonna find him they will regardless of the new lien. Liens have no relationship to value but this is a bit unusual. Most folks don't have this issue.

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Well, they are supposed to. That's what caused the crash of the 80's.

Wut? Your statement makes zero sense.

assuming it's your primary residence and under homestead the tax assessed value doesn't get reset to 'market price' with a refi, just a new owner

Yep. Homestead limits value increase to 10% per year. Ask me how I know. Tax man has hit me the last 5 of 6 years. 2020 was my only break

What relationship does lien amount have to taxed value? That's the topic here.

Aren't you in Austin?

Market has been going up 15 straight years. You're lucky you ever got a break.

Round Rock. Pretty sure the CAD overestimated the virus that year. They are back on track I assure you.

SteveBott said:

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Wut? Your statement makes zero sense.

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Are you saying liens have nothing to do with appraised value? The why do lenders require appraisals?

No. I am saying liens do not factor in what the CAD sets value of the property. But I did note I had some doubt that extreme increases in liens would not trigger a look at the property just it is pretty rare that the county does not have a good idea what your property is worth regardless of lien

SteveBott said:

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No. I am saying liens do not factor in what the CAD sets value of the property. But I did note I had some doubt that extreme increases in liens would not trigger a look at the property just it is pretty rare that the county does not have a good idea what your property is worth regardless of lien

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Ok, but CADs do look at DTs for value. I don't know how many of them look at refis, but they do look at DTs on sales.

What is DT?

Deed of Trust. Still don't understand how that factors into CAD value on a refi.

doesn't the public record just show how much was borrowed?

How could the CAD definitively link that borrowed amount with the property value? Seems like a huge stretch.

Diggity said:

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doesn't the public record just show how much was borrowed?

How could the CAD definitively link that borrowed amount with the property value? Seems like a huge stretch.

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If they see that more was borrowed than they're showing it to be appraised for, seems like that could cause their valuation to go up, so in turn the property taxes would go up.

Thanks all for the feedback. I was hoping someone would know definitively yay or nay, but it sounds like it's possible but not known.

It really is unknown. Your situation is just so unusual. It comes down to how aggressive the county is at monitoring internal data. Good luck!

at most, I suppose it could be an indicator for them to "flag" your account and order an updated appraisal, but CAD's are not using refi info to make definitive value statements.

I had this same question. We've put $80k into remodeling our house, built a $70k tiny house, $30k in landscaping improvements and are about to build a barndominium on 5 acres just outside city limits. All in about 14 months.

My fear with refinancing was that the new appraisal would make its way to the tax man and increase our taxes like crazy. Glad to know that it doesn't exactly work like that.

You might not have to pull permits out there, but that's the more typical giveaway than refinancing.

Also, many CADs use satellite images to track changes in the property footprint (pools, additions, secondary structures) so they could conceivably get you that way.

Out local ones saw container roofs on some land and just assuked they were permanent structures for tax purposes.

Not so fast my friend.

Thanks for the feedback all. It is a bit of an odd predicament.