Property Tax Rate
It is worth to know your property tax fees in advance since they are part of the money you will need to consider like other mortgage loan closing fees. Planning ahead and knowing your limits is important when coming to complete a mortgage or refinance process.
You should check property tax rates by zip code or by state as they vary from place to place, and you do not want to miss the tax payments, as this will be reported to your FICO report, and if the tax payments are not paid on time, this can end up with a tax lien trouble, which will lower your credit score.
A tax rate is the amount of tax on each $100 of the assessed value of the property. The rates may change from year to year.
How are the property taxes fees calculated
There are 3 types of classes, but only the first class is influencing your money.
Class 1, which means your property tax rate is $0.85 This is the tax rate for most residential real property, including multifamily.
The amount of tax due is determined by dividing the assessed value of the property by $100, then multiplying that amount by the rate for the class associated with the property. If the price of your house is $200,000 then the sum is divided by 100, which makes it 2,000 and this is multiplied be $0.85. You will have to pay an annual property tax rate of $1700.
So What Can You Do To Improve Your Situation?
The best advice is to bump your credit score up! It will give you better leverage when facing the lenders, and better negotiation position when applying for any financial need.
Lets not forget you are probably paying $500-$1000 extra per year in higher interest rates, and credit payments.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket. Don’t be cheap when it comes to financial education..
Ignorance costs more.
Check here for more mortgage definitions.