March 10, 2023

How Property Taxes Impact Your Home Finances

Property taxes are important to take into housing cost considerations. They can impact your housing budget and mortgage payments, although they also vary depending on where you live.

What are Property Taxes?

Your local government uses property taxes for various needs, such as emergency medical services, water and sewer infrastructure, public education, road construction, and other civil services. Each county or state have their own way of calculating taxes, although many rely on an assessment completed by an elected or appointed person or council.

Don’t worry about calculating your own property taxes, as many house listing sites will include an estimated property tax value for listings. You can also ask your Real Estate Agent about a property’s taxes.

Does Everyone Pay the Same Property Tax in a City?

Different properties will have different taxes, even within the same or similar neighborhoods. As an example, vacant land would have a significantly lower assessed value than a property that includes a residency structure and amenities. The vacant land would have lower property taxes.

How Are Property Taxes Paid?

There are various ways to pay your property taxes. Some property taxes are paid every six months or yearly. Others pay through a portion of their monthly mortgage payment.

If the seller has already paid for the entire year when you purchase the home, you’ll be required to reimburse them for the months you’ll be living in the house. This is usually paid as part of your closing costs.

It’s best to speak with your Loan Originator if you have any questions about your property taxes. Do you think your taxes may not be in line with the value of your property? We have a free solution to help assure you’re paying fair taxes. Ask your Loan Originator for details on our Property Tax Relief Solution. When you’re ready to get your homebuying process started, contact us today.

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