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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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