how does property tax factor into buying a home?

Answer 1

It depends on where you live. In Texas, you can't pay your property taxes monthly, you have to do it all at once. And since there's no state income tax, property taxes are used for everything from school districts to community colleges, to local government. So, depending on how expensive the house is and where it is, your property taxes are higher.

Answer 2

I am not sure what you mean. But I think you are asking about how it is split up at the closing. Typically, the seller is responsible for the taxes up to the sale date then the buyer will be responsible from that point on. If it has been paid in full the buyer will have to add the pro rated portion to the payment for the house. If it has not been paid the buyer will reduce their payment by the amount of the pro rated taxes the buyer is responsible for.

Generally, you need to know what your tax bill is going to be and factor this in to your budget when you are contemplating buying a home. Sometimes this is a part of your mortgage payment if your lender requires it.

Answer 3

Make sure to have your property taxes escrowed with your mortgage payment, that way it is sure to get paid, and you don't have to make a large payment at tax time, your mortgage company pays it for you when it is due, you pay it monthly along with your principle, interest and insurance, it's easier that way and you don't lose your house to the taxing authority.

Answer 4

when you buy a home you will pay 1/12th of your annual property taxes with each monthly payment. This may increas your monthly payment by around 10%.

Answer 5

Property tax is something you pay every year regardless.Even if the home is paid off, its the assessed value your paying on.Take it into concideration.

Answer 6

i agree w/ big daddy.
what usually ends up hurting people is they don't have it included. alot of times when house is in foreclosure it's because of back taxes.