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