Home Buying in Fort Worth>Question Details

Dana Giles, Home Buyer in Fort Worth, TX

How is the property tax figured into the mortgage amount?

Asked by Dana Giles, Fort Worth, TX Sun May 5, 2013

When I do the estimates the calculators only seem to want to add about $100 on top of the mortgage amount, but they can't be right b/c the avg taxes in the area I am looking at is about $2700/yr.

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Answers

6
This has always been confusing for homeowners as well as Realtors and many Lenders. This is how a lender calculates future taxes for a home loan with an impound account

EXAMPLE:

Current Assessed Value- $250,000.00
Current Annual Taxes- $3,500.00
Tax Rate- 1.40%

New Sales Price- $300,000.00
Lender Estimated Taxes- $4,200.00
Tax Rate- 1.4%

The Lender has to anticipate the new accessed value changing when the property is re-assessed based on new data. If not, the borrower's impound account will be short therefore the Lender will need to increase the borrower's payment possibly causing a hardship for the new homeowner. To avoid this many lenders will estimate based on the data. If the property taxes do not increase the lender will refund the extra funds in the borrower's impound account as the Lender has new laws restricting carrying too high of a balance in the account and adjust the payment down.
0 votes Thank Flag Link Sun May 5, 2013
George --- I don't think your numbers work for Texas properties. We do not get "reassessed" for property taxes when a house sells. Taxes here are based on the value of the property, not the last sales amount. And in Texas, values don't go up like yours do in California. We have a stable economy here, and that's why Texas was not in the last "bubble." If you are not licensed to do loans in Texas, best to not give advice in this state. And if you ARE licensed for loans, you should learn more about the real estate practices here.
Flag Sun May 5, 2013
Good Evening Dana
Those tax calculators are not very accurate are they! In your case take the $2,700 divide by 12 and then subtract the $100.00 that the calculators are putting in automatically. Your taxes are approximately $225 per month. More importantly though, please find a great team of people to surround yourself with including a mortgage and REALTOR, both of these people can do a lot of work for you and show you many, many different scenarios that can change your payment both today and for years to come. Best of luck to you!

John Straub
Keller Williams Realty
0 votes Thank Flag Link Sun May 5, 2013
Wow... Rick certainly comes off as a pr ick. John, I'm moving to TX next year and look forward to working with KW in the DFW area.
Flag Fri Oct 10, 2014
Really, John --- "Surround yourself with a mortgage and a Realtor, both these people..." --???
Flag Sun May 5, 2013
Quite simply, 1/12th of the taxes are collected monthly with you payment

Tom Burris
Mortgage Banker
http://www.servicefirstmckinney.com/
(214) 763-4629 cell/text/nights/weekends(Really!!)
tburris@servicefirstmtg.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Sun May 5, 2013
Dear Dana,

So sorry you are having trouble getting this kind of information. If you were working with a good Realtor, they would provide that for you. Perhaps you could give me a call...?

If the taxes for last year were $2,700 on the property, your monthly payment would simply include $225 for the taxes. They will also add in 1/12th of the annual insurance premium, and tack that on to your principle and Interest. Some loans also include mortgage insurance premiums. Ask your loan officer about that. And if you are not talking to a loan officer either, then contact me for a recommendation to a good one.

It does not matter whether you are buying a new house, or a pre-owned home, or even a "for sale by owner", in any case you need an experienced Realtor to represent you and guide you through the process. I've been selling homes around here for 33 years, so I've got the experience you are looking for. I'll make sure you don't get any surprises, like how much the final mortgage payment will be. Most Realtor's who know what they are doing will know how to calculate that, and not just tell you to go call a loan officer!

I wish you the best on finding the right house for your family. I've done this hundreds of times in the past, and have many satisfied customers. Please contact me directly.

Have a nice day!

Rick DeVoss

ULTRA Real Estate Services

817-300-6121

Direct: RickDeVoss@Realtor.com
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0 votes Thank Flag Link Sun May 5, 2013
You are correct, the estimate calculators do not give a true and accurate figure. Your best bet is to speak with a loan officer to get pre qualified and they should be able to answer your questions about escrowing your taxesand insurance and how that affects your total monthly mortgage payment.
I would be happy to help you with the home buying process and answer any other questions you might have when you are ready to get started.

Feel free to contact me at your convenience
Shelly Sierra, REALTOR®
RE/MAX Masters
Direct: 214-686-4865
0 votes Thank Flag Link Sun May 5, 2013
Recommend speak with your mortgage broker who can provide you factual information than what you might locate on the web.

Contact my office today where I can show you many amazing homes work with your family specifications.

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com 100's of Dallas homes listed for sale or lease

Follow me on Facebook
http://www.facebook.com/lynn911dallas
0 votes Thank Flag Link Sun May 5, 2013
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