Buying a house in the USA
May 30th 2012, 2:07 pm
#16
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Re: Buying a house in the USA
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.
May 30th 2012, 2:10 pm
#17
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Re: Buying a house in the USA
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.
May 30th 2012, 3:34 pm
#19
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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.
May 30th 2012, 5:05 pm
#20
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Re: Buying a house in the USA
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.
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.
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.
May 30th 2012, 5:11 pm
#21
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Re: Buying a house in the USA
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.
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.
Property tax is certainly not 'included in the mortgage' but may be paid from an escrow account by the mortgage company.
May 30th 2012, 5:14 pm
#22
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Re: Buying a house in the USA
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.
Property tax is certainly not 'included in the mortgage' but may be paid from an escrow account by the mortgage company.
May 30th 2012, 5:16 pm
#23
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Re: Buying a house in the USA
The escrow account actually takes quite a generous amount over what is actually needed and holds it.
May 30th 2012, 6:00 pm
#24
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Re: Buying a house in the USA
I agree that it depends on the mortgage holder -- I've had to do it once, and haven't had to twice.
May 30th 2012, 6:30 pm
#25
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Re: Buying a house in the USA
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.
Jun 6th 2012, 1:19 am
#26
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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.
Jun 6th 2012, 1:27 am
#27
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Re: Buying a house in the USA
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.
Jun 6th 2012, 1:36 am
#28
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Re: Buying a house in the USA
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.
Jun 6th 2012, 12:47 pm
#29
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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 
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
Jun 6th 2012, 1:59 pm
#30
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Re: Buying a house in the USA
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.