Each property tax is based on the amount of the purchase price. Basic tax is 1% plus several small add ons that vary from town to town. Maximum the tax can increase is 2% per year. As a lender, we us 1.25% of the purchase price to estimate the annual taxes. The 0.25% is to cover the add ons such as mosquito abatement, school bond measures, sewer and water pipe replacement etc; the mesures you voted on at local elections.
Please call me anytime you have a lender question. 415-258-1691.
Larry Martinez - www.MartinezLoans.com