Questions to Ask About Property Taxes

Property taxes are a major expense, often forgottenowners paying in property taxes? Is this consistent
when buying a home. They can cost you thousands ofwith neighboring properties of equal size and condition.
dollars per year. But property taxes are not the sameIf it is different, why?-How will property taxes affect
for like properties or owners.Property taxes provideyour ability to get a mortgage? Lenders look at many
much of the revenue for local and state governments.different measures to qualify you for a mortgage. One
When property values go up, property tax collectionsof the most important is the percentage of the
also go up, which means that there are additionalmonthly income in relation to the amount spent each
dollars for public services and schools -- and even taxmonth for mortgage interest, principal, property taxes
refunds. If property values decline, the governmentand insurance, also called your PITI. Lower property
programs are short and there is pressure to raise yourtax bills free up more money for other parts of the
taxes to make up for the deficits.How much you payPITI.-Has the tax bill been appealed. Values by tax
in property taxes depends on the value of your homeassessors can be questioned if the owners feel that
and local policies. In most cases, the property value isthe estimates are too high -- for example, if the math
established by the government assessor. Once thewas wrong or an incorrect schedule was applied.
value is set the tax rate is applied. For example, if theLocal assessment offices can help you with your
tax rate is $1.50 for each $100 of value, then aappeal.-Are you or the current owners eligible to an
$100,000 home would have an annual tax bill of $1,500exemption?-Can property taxes be deferred?-What
or $125 each month.You should ask some questionsare the income tax benefits of property tax
about property taxes when looking to buy a home,payments?- Will the sale trigger a different tax bill than
including:-What value is used to assess the propertythe current one?-How often are assessments
taxes? You might think that the current market valuemade?Martin Lukac, represents a finance
would be used, but that's not always the case. In manyweb-company specializing in real estate/mortgage
areas, circuit breaker programs limit the amount tomarket. We specialize in daily updates, rate predictions,
which you can be taxed. Another approach is to applymortgage rates and more. Find low home loan
the tax rate on a portion of the assessed value andmortgage interest rates from hundreds of mortgage
not the full worth of the property.-What are the currentcompanies! Visit today.