Before you buy a Spring Texas home located in the 100 year flood zone, you need to stop and consider the rising cost of flood insurance. In 2009, flood insurance on Spring Texas homes located in the 100 year flood zone averaged a 6% increase and in 2010, they increased an additional 8%. Now, don’t confuse home owners or hazard insurance with flood insurance because flood insurance is a completely separate insurance policy.
If your Spring Texas home is located in the 100 year flood zone and you have a mortgage on the home, you are stuck with purchasing flood insurance because it is required by your mortgage lender. If your home is located in the 500 year flood zone, flood insurance is not required by your mortgage lender and the purchase of flood insurance is totally optional.
Will the rising costs of flood insurance stop buyers from purchasing homes in the 100 year flood zone? Probably not.
But if you are thinking about purchasing a home in the 100 year flood zone, you need to do your math. What I mean is let’s say your flood insurance policy is going to cost you $600 a year which is $50 a month. How much more house could you buy for the same $50 a month if you were not required to purchase flood insurance? Based upon today’s mortgage interest rates of 5%, the answer is about $10,000.
Jesse and Shanna Perez
We have had the privilege to work with the amazing Jill Wente twice in the past 4... read moreJesse and Shanna Perez
We have had the privilege to work with the amazing Jill Wente twice in the past 4 years. If you want to work with someone who is very knowledgeable in the realty business and beyond that, look no further. From day one she was ready to help us and answer any questions that we had. You can see her passion and professionalism as soon as you meet her. Everything is perfect, from the photos to the staging of our home and even the fliers that she had made showcasing our home is perfect. She goes above and beyond. So if you want your house to get sold and want it done right, I'd recommend Jill Wente everytime. Anyone can put a house on the market, few can get it sold earlier than expected. She had a contract on both of our homes we sold within days of being on the market. Thank you Jill for being the best at what you do. read less