lorddonk, Home Buyer in Buffalo, NY

Are property taxes put into your mortgage? Or do you have to pay them separately?

Asked by lorddonk, Buffalo, NY Sun Aug 7, 2011

When you buy a new home that say is $150,000 the mortgage estimates for $400 /mo what would be the property taxes? And would it be $400/mo plus you have to keep a separate account for the taxes or would it be included in the $400 a month mortgage?

If its optional, is putting it into your mortgage recommended?

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11
Joseph Keres…, Agent, San Antonio, TX
Sun Aug 7, 2011
BEST ANSWER
The answer to your question seems to be the taxes would probably be in addition to the $400/month mortgage payment but would be payed at the same time, so like christopher said below the home isn't lost to a tax lien/ foreclosure for failure to pay...tax liens always out weigh any others.

It is important to know and calculate in for the additional cost of property taxes when budgeting in for your new home in addition to your mortgage payment. You should be able to look up a given property in at your Counties Appraisal District website.

Good Luck
1 vote
Marc White, Agent, Charlotte, NC
Sun Aug 7, 2011
The loan (or mortgage) officer will be able to provide you with this information. If you are pulling this information from a mortgage calculator online, it usually is not including the yearly taxes or any additional costs.

I always recommend having your costs compiled into one payment, therefore you will not have to worry about having the money when it is time to pay your taxes. Most mortgages already include these "prepaid" taxes with your monthly payments to them. They mortgage company then pays the local tax offices your property taxes.
2 votes
Jenet Levy, Agent, New York, NY
Mon Aug 8, 2011
Your mortgage does not include property taxes. However, it will be part of what the bank expects you to pay monthly and they will escrow the portion for real estate taxes and they will pay them for you quarterly.
1 vote
Terry Koraha…, , 11358
Sun Aug 7, 2011
When you speak to your mortgage broker ask if they included or estimated some taxes with the amount they quoted you. Usually taxes are accumulated (escrowed) by the mortgage company...meaning they will collect the money from you each month (from part of your mortgage payment) and will pay the taxes from the money in the escrow account that has been accumulated during the year-either quarterly or semi anuually. IF it is a new house-make sure you check out the real taxes that will be assessed. Terry K 718-614-3167 cell or TKorahais@elliman.com
1 vote
Anna M Brocco, Agent, Williston Park, NY
Sun Aug 7, 2011
Property taxes do vary, therefore if asking about a specific property, your agent can provide the information--although it's always a good idea to verify taxes with the tax assessor's office; generally if purchasing a one family house the taxes will be included in your mortgage and your loan officer will best advise...
1 vote
Irina Lattan…, Agent, New York, NY
Sun Aug 7, 2011
Please keep in mind that property taxes can be deducted from your income taxes , how much is depending on your tax bracket. Also you may pay attention that some properties have tax abatement for some period of time and after that time is over they can go up. In addition taxes can go up if area gets assessed.
1 vote
James 'Jim'…, Agent, New York, NY
Sun Aug 7, 2011
if you buy a co-op the taxes are included with the monthly maintenance charge. in a condo the taxes are separate from the common charges and mortgage payment. sometimes when you buy a single family house the taxes included in monthly mortgage payment bc the taxes are paid by the bank who want to make sure the taxes are paid so the city doesn't take control of the property due to unpaid taxes.
1 vote
Christopher…, Agent, Tarrytown, NY
Sun Aug 7, 2011
Hi, in NY your property taxes are paid separately from your mortgage. The school taxes typically come twice a year and the other local taxes usually once a year. Depending the amount of your down payment and overall risk the bank may require you to have money in escrow so they can automatically pay the taxes when due. They don't want to take any chances on a tax foreclosure if you don't pay them.

Chris
Web Reference:  http://raveis.com/chrispagli
1 vote
Rodney Mason, Mortgage Broker Or Lender, Atlanta, GA
Sun Aug 7, 2011
Most every loan program requires that your taxes and home owner's insurance be included on your escrow account. Each month, a portion of your total payment will go into the escrow account. If you are putting down 20%, then you might be able to waive escrows. You would need to consult your loan officer about that.
1 vote
Scott Godzyk, Agent, Manchester, NH
Sun Aug 7, 2011
Property taxes are not set by what you are purchaisng the home for but what the town.city has assessed the home for, you can go to teh towns web site and view it in most cases, if not online you can call or go there. Most loans where you are putting under 20% down require you to escrow taxes, your loan officer should be able to provide a break down to you.

http://www.trulia.com/blog/scott_godzyk/2010/10/where_do_i_i…

Please see my blog for tips and advice on getting a mortgage
Web Reference:  http://www.ScottSellsNH.com
1 vote
Annette Levi…, , New York, NY
Mon Aug 8, 2011
If you are putting less then 20% down the mortgage insurance company will require an escrow for real estate tax. The real estate tax escrow is determined by the tax on the property, multiplied by 110% then divided by 12.
Most lenders require a fee to waiver the real tax escrow.
0 votes
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