Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Buying a house in the USA

Buying a house in the USA

Old May 30th 2012, 2:07 pm
  #16  
Forum Regular
 
Joined: Dec 2011
Location: Lisle, IL
Posts: 48
davenay67 will become famous soon enough
Default Re: Buying a house in the USA

Originally Posted by Nutmegger View Post
Also, in TN the insurance and property tax may be paid at the same time as the mortgage payment, but it should be stressed they are not "included," they are additional sums of money.
In IL, we have the option to pay property tax and insurance separately or 'escrow' them into the mortgage for a convenient single monthly payment.
davenay67 is offline  
Old May 30th 2012, 2:10 pm
  #17  
SUPER MODERATOR
 
Jerseygirl's Avatar
 
Joined: Dec 2005
Posts: 82,995
Jerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by davenay67 View Post
In IL, we have the option to pay property tax and insurance separately or 'escrow' them into the mortgage for a convenient single monthly payment.
In NJ if you have a mortgage the mortgage company is responsible for paying property taxes. The mortgage company then adds the amount onto your mortgage payments.
Jerseygirl is offline  
Old May 30th 2012, 3:26 pm
  #18  
Deep in the woods of CT
 
Nutmegger's Avatar
 
Joined: Feb 2010
Posts: 6,067
Nutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by Jerseygirl View Post
The mortgage company then adds the amount onto your mortgage payments.
That's what I was trying to get across! It gets added on!
Nutmegger is offline  
Old May 30th 2012, 3:34 pm
  #19  
Lost in BE Cyberspace
 
Boiler's Avatar
 
Joined: Mar 2004
Location: Colorado
Posts: 33,506
Boiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond repute
Default Re: Buying a house in the USA

In Colorado the Property Tax seems similar to that in the UK. However that is just the start.
Boiler is online now  
Old May 30th 2012, 5:05 pm
  #20  
Bob
BE Site Lead
 
Bob's Avatar
 
Joined: Aug 2004
Location: MA, USA
Posts: 91,797
Bob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond reputeBob has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by tnzetasigep View Post
The cost may not always be as expensive as you’ve represented. Homeowners insurance (as well as property tax) is included in the mortgage payment (in Tennessee anyway) and is small portion of your monthly payment. From the TN Comptroller of the Treasury:
Assume you have a house with an APPRAISED VALUE of $100,000. The ASSESSED VALUE is $25,000 (25% of $100,000), and the TAX RATE has been set by your county commission at $3.20 per hundred of assessed value. To figure the tax simply multiply the ASSESSED VALUE ($25,000)by the TAX RATE (3.20 per hundred dollars assessed).

$25,000 / 100 = 250 x $3.20 = $800.00 or ($25,000 x .03200 = $800.00)
for a tax bill of $800.00
http://www.comptroller.tn.gov/pa/pahtfytb.asp

Homeowners insurance is also inexpensive and covers everything except flood insurance (that is available depending on where you live). Covers medical payments if someone is injured on your property, covers fire, theft, acts of God…The main expense I’d worry about is the cost of upkeep which if you live in the UK you could be taken advantage of if you’re not careful.
That's awesome.

Couldn't buy a rotting shed at the end of a drive way for that kind of money over here though and that's well in the burbs.
Bob is offline  
Old May 30th 2012, 5:11 pm
  #21  
Lost in BE Cyberspace
 
Joined: Jan 2008
Posts: 41,518
Sally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by Nutmegger View Post
This post just goes to show that "one size does not fit all." For a start, though $100,000 may get a very nice house in TN, it would get you a garage in CT. My homeowner's insurance has never been a part of a mortgage payment and is very definitely not inexpensive. And my property tax is astronomical. It is all down to what part of the country one lives in.

Also, in TN the insurance and property tax may be paid at the same time as the mortgage payment, but it should be stressed they are not "included," they are additional sums of money.
The appraised value here is generally what you paid for the house + 2% pa. This can be adjusted down if property values fall but will go back up to the previous point if they rise again.

Property tax is certainly not 'included in the mortgage' but may be paid from an escrow account by the mortgage company.
Sally Redux is offline  
Old May 30th 2012, 5:14 pm
  #22  
SUPER MODERATOR
 
Jerseygirl's Avatar
 
Joined: Dec 2005
Posts: 82,995
Jerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by Sally Redux View Post
The appraised value here is generally what you paid for the house + 2% pa. This can be adjusted down if property values fall but will go back up to the previous point if they rise again.

Property tax is certainly not 'included in the mortgage' but may be paid from an escrow account by the mortgage company.
That's exactly how it is paid Sally. I was told it's to ensure property taxes are paid.
Jerseygirl is offline  
Old May 30th 2012, 5:16 pm
  #23  
Lost in BE Cyberspace
 
Joined: Jan 2008
Posts: 41,518
Sally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond reputeSally Redux has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by Jerseygirl View Post
That's exactly how it is paid Sally. I was told it's to ensure property taxes are paid.
I don't think you absolutely have to do it like that here, as we were looking at remortgaging with ING and you pay property tax and insurance separately with them.

The escrow account actually takes quite a generous amount over what is actually needed and holds it.
Sally Redux is offline  
Old May 30th 2012, 6:00 pm
  #24  
Deep in the woods of CT
 
Nutmegger's Avatar
 
Joined: Feb 2010
Posts: 6,067
Nutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond reputeNutmegger has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by Sally Redux View Post
I don't think you absolutely have to do it like that here, as we were looking at remortgaging with ING and you pay property tax and insurance separately with them.

The escrow account actually takes quite a generous amount over what is actually needed and holds it.
I agree that it depends on the mortgage holder -- I've had to do it once, and haven't had to twice.
Nutmegger is offline  
Old May 30th 2012, 6:30 pm
  #25  
SUPER MODERATOR
 
Jerseygirl's Avatar
 
Joined: Dec 2005
Posts: 82,995
Jerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by Nutmegger View Post
I agree that it depends on the mortgage holder -- I've had to do it once, and haven't had to twice.
I thought as far as NJ was concerned it was a state thing. Maybe some states stipulate this...maybe some mortgage companies do. As I said before I thought it was to ensure your property taxes are paid.
Jerseygirl is offline  
Old Jun 6th 2012, 1:19 am
  #26  
BE Enthusiast
 
Joined: Nov 2007
Location: Carson City, NV
Posts: 789
TimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of lightTimNiceBut is a glorious beacon of light
Default Re: Buying a house in the USA

Chances are it's the mortgage companies as they probably don't like it if the county forcloses on you because you forgot to pay the property taxes. IIRC the property taxes are higher up in the food chain in that particular case.
TimNiceBut is offline  
Old Jun 6th 2012, 1:27 am
  #27  
Lost in BE Cyberspace
 
sir_eccles's Avatar
 
Joined: Mar 2010
Location: Phoenix, AZ
Posts: 8,106
sir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond reputesir_eccles has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by Sally Redux View Post

The escrow account actually takes quite a generous amount over what is actually needed and holds it.
Not in my experience. Just got an escrow statement it details when and how much gets paid in and out, total at the bottom is $0 for the year.
sir_eccles is offline  
Old Jun 6th 2012, 1:36 am
  #28  
SUPER MODERATOR
 
Jerseygirl's Avatar
 
Joined: Dec 2005
Posts: 82,995
Jerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond reputeJerseygirl has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by sir_eccles View Post
Not in my experience. Just got an escrow statement it details when and how much gets paid in and out, total at the bottom is $0 for the year.
My experience was the same as Sally. As I understand it the mortgage company is required to do this in NJ. Live everything else it probably differs from state to state.
Jerseygirl is offline  
Old Jun 6th 2012, 12:47 pm
  #29  
BE Forum Addict
 
Brat1's Avatar
 
Joined: Jul 2009
Location: Bishopbriggs - now Bethel, Connecticut
Posts: 1,434
Brat1 has a reputation beyond reputeBrat1 has a reputation beyond reputeBrat1 has a reputation beyond reputeBrat1 has a reputation beyond reputeBrat1 has a reputation beyond reputeBrat1 has a reputation beyond reputeBrat1 has a reputation beyond reputeBrat1 has a reputation beyond reputeBrat1 has a reputation beyond reputeBrat1 has a reputation beyond reputeBrat1 has a reputation beyond repute
Default Re: Buying a house in the USA

We had to pay a years home insurance up front, and still pay the house insurance monthly. All the taxes, insurance etc, come off with the mortgage monthly, we weren't allowed the option to pay the taxes etc ourself, but I think that was the mortgage company's stipulation. Suits me, I know it's getting paid and it's one less bill to worry about I'm also hoping that our taxes will go down next year, if the appraisal that just got done is anything to go by, so fingers crossed for that one
Brat1 is offline  
Old Jun 6th 2012, 1:59 pm
  #30  
BE Irregular
 
RICH's Avatar
 
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,135
RICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond reputeRICH has a reputation beyond repute
Default Re: Buying a house in the USA

Originally Posted by sir_eccles View Post
Not in my experience. Just got an escrow statement it details when and how much gets paid in and out, total at the bottom is $0 for the year.
I got a healthy check back for last years escrow payments, and reduced payments for this year as the tax & insurance decreased, as the property value decreased. It evens out in the end. Also at the start I had to put 3/6 months in up front.

The escrow requirement is written in the mortgage, not sure if it is a lender or state requirement.
RICH is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.