Nebraska Mortgage Calculator
Calculate your Nebraska mortgage payment with PMI, property tax, and closing costs.
Useful for home buyers in Omaha, Lincoln, Bellevue, Grand Island, Kearney, and all of Nebraska.
Useful for home buyers in Omaha, Lincoln, Bellevue, Grand Island, Kearney, and all of Nebraska.
Why use a Nebraska Mortgage Calculator?
Nebraska has relatively high property taxes with homestead exemptions available for certain residents. This calculator estimates your payment, PMI, property tax, and closing costs.
Nebraska has relatively high property taxes with homestead exemptions available for certain residents. This calculator estimates your payment, PMI, property tax, and closing costs.
Result
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Nebraska Property Tax: The average effective property tax rate is about 1.73%, among the highest in the nation. Nebraska offers homestead exemptions for certain residents including seniors, disabled individuals, and veterans. Documentary stamp tax is $2.25 per $1,000 of property value.
Average Home Prices in Major Nebraska Cities (2024)
| City | Detached | Semi-Detached | Townhouse | Condo |
|---|---|---|---|---|
| Omaha | $315,000 | $265,000 | $235,000 | $210,000 |
| Lincoln | $285,000 | $240,000 | $215,000 | $195,000 |
| Bellevue | $300,000 | $255,000 | $225,000 | $200,000 |
| Grand Island | $220,000 | $190,000 | $175,000 | $160,000 |
| Kearney | $245,000 | $210,000 | $195,000 | $175,000 |
Note: Prices are approximate averages for 2024 and may vary by neighborhood and property features.
How Mortgage Rules Work in Nebraska
- Property Tax: Nebraska's average effective property tax rate is about 1.73%, among the highest in the nation. Property taxes are paid in two installments, due on May 1 and September 1.
- Homestead Exemption: Nebraska offers homestead exemptions that can reduce property taxes for qualifying homeowners, including seniors (over 65), disabled individuals, certain veterans, and low-income residents.
- Documentary Stamp Tax: Nebraska charges a documentary stamp tax of $2.25 per $1,000 of property value (0.225%) on real estate transfers.
- PMI (Private Mortgage Insurance): If your down payment is less than 20%, you must pay PMI, which is added to your monthly payment until you reach 20% equity.
- Closing Costs: Nebraska's closing costs include title insurance, appraisal fees, and other expenses, typically ranging from 2-4% of the purchase price.
Example: On a $275,000 home with 10% down in Omaha, you pay PMI and property tax of about $4,757.50 annually (without homestead exemption). The documentary stamp tax would be approximately $618.75, and closing costs typically run 2-4% of the purchase price.
Frequently Asked Questions
Nebraska's homestead exemption program reduces property taxes for qualifying homeowners. Eligibility categories include seniors aged 65 or older, disabled individuals, certain veterans with a disability rating, and low-income residents. The exemption amount varies based on income and category, with possible exemptions ranging from partial to full exemption of the home's assessed value. Applications must be filed between February 1 and June 30 with the county assessor's office. The exemption must be renewed annually, though some categories may qualify for a continuing application.
Nebraska property taxes are among the highest in the nation primarily because the state relies heavily on property taxes to fund local services, particularly public education. Unlike many states, Nebraska has limited revenue sources, with no state sales tax on many services and relatively low income tax rates. Additionally, Nebraska has many small, rural communities that need to maintain infrastructure and services despite having a smaller tax base, which can lead to higher property tax rates to meet funding requirements.
Nebraska offers several programs for first-time homebuyers through the Nebraska Investment Finance Authority (NIFA). The Military Home Program provides lower interest rates for qualified veterans and active-duty military personnel. The First Home Program offers competitive interest rates and down payment assistance up to 5% of the purchase price (up to $10,000). The Homebuyer Assistance Program (HBA) provides down payment and closing cost assistance in the form of a second mortgage. Additionally, NIFA's First Home Targeted Program offers even lower rates for homes purchased in designated areas. Income and purchase price limits apply to these programs.