Im buying a house in california, the house cost 250,000. Im going to get a 30yr traditional loan. should I include the taxes in the payment or should I pay the taxes at the end of the year. I understand that the interest Im paying is tax deductable so would this help me at all. how much would the property taxes be on a 250, 000 home per year???
2007-04-26 10:25:40 · 4 answers · asked by oldskool 2 in Business & Finance ➔ Taxes ➔ United Kingdom
Unless you are an excellent, primo budgeter with lost of self discipline, have the taxes escrowed into your mortgage payment. You will miss it a lot less a little each month than getting that whopping tax bill all at once. Also, what you can deduct from your taxes is the interest you pay on your mortgage, it has nothing to do with escrowed extras like taxes or insurance.
2007-04-26 10:29:55 · answer #1 · answered by bmt330 3 · 0⤊ 0⤋
An escrow acct for taxes is a very good idea. It sounds like you are a first time home owner. Unexpected costs arise and at least this way you know you will have money put away for the taxes. You will receive a check for the amount in your escrow account at the end of the year and be responsible for payment. If there is any excess amount the extra will be yours to keep. I would call the county treasurer and you can find out from them how much the taxes were last year, usually all you have to give them is the address of the property. Tax records are open to the public so there isn't a problem giving out the information.
2007-04-26 17:34:11 · answer #2 · answered by ridder 5 · 0⤊ 0⤋
A lot of lenders like to have you include the prop taxes with the payments. It goes into an escrow account and when taxes come due, the city or whatever bills the mortgage co and they handle it. You just get a statement that it has been paid.
The bank likes it, because they KNOW the taxes are paid, and it saves you having to plan for it.
I did it this way, and it was a lot easier.
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It still istax deductable.
I have no clue how much the taxes are. The realtor would know, and I suggest you find out.
2007-04-26 17:32:49 · answer #3 · answered by TedEx 7 · 0⤊ 0⤋
Generally the taxes are included in the mortgage payment and the bank pays the taxes. In southern cali taxes are darn high, home owners insurance is high, gas prices are high. I guess you bought a small modest house if it's only 250,000
2007-04-26 17:30:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋