We pay our property taxes along with our mortgage and the amount listed on our monthly statement is considerably higher (roughly 20%) than what is listed on our county's Tax Assessor website for our address' estimated taxes (which includes city, school, county, college and hospital). Why would these numbers differ? Are we paying too much by some oversight during our mortgage process?
Thanks!
2007-08-04 12:18:01 · 4 answers · asked by wifey 2 in Business & Finance ➔ Taxes ➔ United States
Our insurance is payed, as well, but listed separately, so it's not included in the tax amount.
2007-08-04 12:44:39 · update #1
The mortgage company uses an estimate of the taxes you will owe. The main factors influencing that estimate are last years tax bill and the estimated value on the property. If the tax rate has changed for any reason, one of the numbers you have may reflect the new rate and the other could still be based on the old rate.
mcmufin was not quite correct about any difference being applied to the principle or refunded to you. In most cases, any excess will reduce the escrow portion of your payment when they recompute it for the following year. You still don't lose the money, but it is returned in the form of a lower monthly payment.
2007-08-04 14:39:36 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
The escrow account figures for property tax are estimates. The mortgage company uses a number of factors to arrive at that amount. You should be receiving a property tax bill from the county that your property is located with the exact amount each year. The terms of your loan will determine how long and what amount you must maintain in the escrow account to assure that taxes and insurance are paid. At the end of the year most mortgage companies provide a statement which identifies what has been paid and any balance or adjustments are necessary.
2007-08-04 14:05:51 · answer #2 · answered by ? 6 · 3⤊ 0⤋
i bet the house insurance comes out of escrow too. that is one reason they take out more then what your property tax statement says. also they are allowed to take out a certain percentage more out as your taxes and insurance may become do close together and if they didn't take out extra to cover it your escrow account would not have the money to pay for it.
2007-08-04 12:24:37 · answer #3 · answered by george 2 6 · 0⤊ 0⤋
The mortgage company is using a nationwide blanket mathematical calculation without considering the fact real estate prices do not uniformly increase or decrease across the country.
The excess money you paid is still yours. The mortgage company must either apply it to your outstanding loan balance or refund it to you. That should be spelled out in your note and/or mortgage.
2007-08-04 13:41:35 · answer #4 · answered by mcmufin 6 · 0⤊ 2⤋