Property
Tax
As
the saying goes, there are two things you can’t avoid, death and
taxes. Well the same holds true for home
ownership.
Property
taxes are typically based upon the value of the home.
While
shopping
for a home, you will notice the amount of taxes the current resident
is paying on the paperwork that gives a description of the loan. This
dollar amount will most likely be based on the amount they paid for the
home, so be sure to have your realtor find out what the exact amount may
be.
Your
taxes can be paid in one of two ways. The most efficient way would be
to have them escrowed.
Escrow means that your taxes and insurance are paid as part of your monthly
mortgage payment. Your lender will than distribute the money owed to the
appropriate parties.
The
other option available to you would be to pay them on your own on a quarterly
basis. If this happens to be the option you decide to go with, make sure
you are financially prepared when the time comes to make that payment.
Principal
Interest and Term
Mortgage
Tax Write Off
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