Ever look at your monthly mortgage bill and wonder where every dollar goes? If you are buying or owning a home in Waxhaw, understanding your payment can help you budget with confidence and avoid surprises. In a few minutes, you will learn what each line item covers, how Union County and Town of Waxhaw taxes fit in, what is usually escrowed, and what to expect at closing. Let’s dive in.
What your payment includes
Principal and interest
Principal pays down your loan balance. Interest is the cost of borrowing. Your monthly principal and interest depend on your loan amount, interest rate, and term. You can plug your numbers into a simple tool like the SoFi mortgage calculator to see how changes in rate or down payment affect your payment.
Waxhaw property taxes
If you live inside the Town of Waxhaw, your tax bill includes the town rate plus the Union County rate. For 2024, the Town of Waxhaw lists a town rate of 0.385 per 100 dollars of assessed value, and Union County published a county rate of 0.5880 per 100 dollars of assessed value for FY 2024–25. You can review the town’s tax page and the county’s notice for details on rate setting and billing timelines. Town of Waxhaw taxes and Union County tax rate notice.
How to estimate your monthly tax portion if your servicer escrows taxes:
- Annual tax equals (assessed value ÷ 100) × (town rate + county rate + any special district rates).
- Monthly tax escrow equals annual tax ÷ 12.
Example only: If your assessed value is 500,000 dollars and you use the town rate 0.385 plus county rate 0.5880, the combined rate is 0.973 per 100 dollars. Annual tax would be 5,000 × 0.973, or 4,865 dollars. The monthly tax escrow would be about 405 dollars. Your actual bill can differ based on assessed value, any fire or special district taxes, and future rate changes.
Homeowners insurance
Lenders require homeowners insurance to protect the property, and most borrowers pay it through escrow. Premiums vary by home value, coverage, deductible, credit profile, and claims history. In North Carolina, many owners have seen upward pressure on premiums, with regulators and insurers approving increases through 2026. That trend can raise your monthly escrow. See context from the Associated Press on recent NC insurance rate activity. Always shop and compare quotes.
Mortgage insurance
- Conventional loans: Private mortgage insurance (PMI) is usually required if you put less than 20 percent down. Typical PMI costs vary with credit, loan size, and down payment. Learn the basics and common cost factors from Fannie Mae’s PMI overview. You can often request cancellation when your loan-to-value reaches 80 percent, subject to lender rules.
- FHA loans: FHA requires an upfront mortgage insurance premium and an annual premium that you pay monthly. FHA policy can change, so check HUD’s FHA information page or your lender for current details.
Escrow accounts
Most lenders collect monthly amounts for property taxes and homeowners insurance in an escrow account and then pay those bills when due. Your servicer runs an annual escrow analysis to adjust the monthly amount if taxes or insurance change. Read a clear explanation of escrow and the annual analysis from PNC. Federal rules also define escrow requirements for certain higher-priced loans. See CFPB Regulation Z, section 1026.35.
HOA and other costs
In many Waxhaw neighborhoods, you will see homeowners association dues. These dues are usually billed directly by the HOA and not included in your mortgage payment. A lender may consider them in your approval, but you typically pay them separately. For what servicers tend to escrow, see this plain-language guide to escrow contents and what is included. Utilities, maintenance, and repairs are also outside the mortgage payment, so budget for them.
Upfront closing costs
Beyond your monthly payment, plan for closing costs. Typical buyer costs include lender fees, appraisal, title insurance, recording fees, attorney or settlement fees, prepaid interest, your first year of homeowners insurance, and initial escrow deposits. Nationally, closing costs often range from about 2 to 6 percent of the loan amount, but your number depends on your loan and property. See a breakdown of common items from Empower’s overview of mortgage closing costs. Ask each lender for a Loan Estimate so you can compare.
Example payment walkthrough
Below is a simple framework to help you estimate a Waxhaw payment. These numbers are for illustration only. Always confirm with lender quotes, current tax rates, and your insurance provider.
Scenario A: 20 percent down on a 550,000 dollar purchase
- Loan amount: 440,000 dollars.
- Principal and interest: Use a calculator like SoFi’s. If you enter a 30-year term with a sample 7 percent rate, the P&I is about 2,927 dollars per month.
- Property taxes: If assessed at 550,000 dollars and you use the combined 0.973 per 100 dollars example above, annual tax is about 5,351 dollars, or roughly 446 dollars per month.
- Homeowners insurance: If your annual premium is 2,400 dollars, escrow would be about 200 dollars per month. Your quote may differ.
- PMI: Not required at 20 percent down for most conventional loans.
- HOA dues: If applicable, add your community’s dues. For example, 75 dollars per month paid to the HOA.
- Estimated monthly housing cost: P&I 2,927 + taxes 446 + insurance 200 + HOA 75 = about 3,648 dollars.
Scenario B: 5 percent down on a 550,000 dollar purchase
- Loan amount: 522,500 dollars.
- Principal and interest: With the same sample 7 percent and 30-year term, P&I is about 3,474 dollars.
- Property taxes: Using the same tax example, about 446 dollars per month if assessed at 550,000 dollars.
- Homeowners insurance: Example 200 dollars per month, based on a 2,400 dollar annual premium.
- PMI: If a lender quotes 0.6 percent of the loan per year, that is about 3,135 dollars annually, or roughly 261 dollars per month. Actual PMI varies. See Fannie Mae’s PMI basics.
- HOA dues: Add your community’s dues if applicable.
- Estimated monthly housing cost: P&I 3,474 + taxes 446 + insurance 200 + PMI 261 + HOA 75 = about 4,456 dollars.
Important: These estimates are for learning only. Get a Loan Estimate from your lender, confirm the current Union County and Town of Waxhaw tax rates and your property’s assessed value, and shop insurance so your numbers reflect your exact situation.
Quick budgeting checklist
- Request Loan Estimates from at least two lenders and compare the monthly payment, APR, and closing costs.
- Ask if your loan requires an escrow account and which items it will include.
- Check your property’s assessed value and watch for Union County reappraisals or tax rate changes.
- Get homeowners insurance quotes early and review coverage options and deductibles.
- Review HOA documents for dues and any special assessments.
When you are ready to run scenarios on a specific address, reach out. I know the Waxhaw and Union County details and can help you line up lender quotes, taxes, and HOA information so you can buy with confidence. If you want a local guide from first showing through closing, connect with Serge Mnatsakanov to get started.
FAQs
Will my Waxhaw mortgage payment include taxes and insurance?
- Often yes. If you have an escrow account, your servicer collects a monthly amount for property taxes and homeowners insurance and pays those bills when due. Some borrowers with larger down payments may opt to pay them directly.
How can Union County reappraisals change my payment?
- If your assessed value increases, your annual property tax can rise. After your servicer’s annual escrow analysis, your monthly escrow portion may increase to cover the higher bill.
Do I have to pay PMI if I put less than 20 percent down?
- With most conventional loans, yes. PMI is common when your down payment is under 20 percent. You can often remove it later as your loan-to-value improves. FHA loans have different mortgage insurance rules.
Are HOA fees part of my mortgage payment?
- Typically no. HOA dues are billed by the association and paid separately, though your lender may consider them when qualifying you for the loan.
Will my homeowners insurance premium change over time?
- It can. Many North Carolina homeowners have seen premiums rise in recent years. Shop your policy at renewal and review coverage and deductibles to manage costs.
