![]() ![]() The Mud bond is responsible for brining the water and sewage into an area.), Lone Star College, and The Woodlands Township (think HOA for The Woodlands), among some others. You will see the school district (Conroe ISD or Klein ISD (This was just voted on, and a change to 1.36 was approved.)), Emergency Service Districts, County Hospitals or County Tax, Mud (this tax rate typically drives one neighborhood to be higher than one another, until the bond that supports the Mud is paid down. Above, you can see that the "Jurisdiction" column identifies who each tax rate belongs to. Here in the slideshow below, I will be featuring four homes for sell in the area, the address and neighborhood isn't so important, but what I want you to reflect on is the tax rate and what makes up those numbers. I wanted to take a moment to dig a bit deeper on property taxes. You will be required to prepay a portion of these for the year, as part of your closing costs. The taxes are paid in arrears, and the insurance is paid upfront, typically in six month increments. *One thing to note, is that insurance and taxes are typically escrowed into a bank account, and the bank will pay them for you once the bills become available. It is not escrowed like the taxes and insurance, but it is used in calculation when it comes to finding out what you can afford.) Home Owners Association (This is a yearly, quarterly or monthly fee that is paid to the home owners association. ![]() PMI is present on FHA loans and loans where you cannot put down at least 20% as your down payment.) They would take your home, and sell it, but this insurance is to insure that they recover all of their loses, past just the profit from the home sell. It is a lender's protection in the instance that you default on your primary mortgage and the home goes into foreclosure. This is a separate insurance policy the bank requires. Private Mortgage Insurance (This is also referred to by its acronym, PMI.Even if you are a cash purchaser, it is intelligent to carry insurance for those "what ifs".) Flood insurance is a separate policy, and it is advised you carry this as well, yet it is only required if you live in a flood plain. Policies cover you and the lender just incase the home is destroyed. Insurance* (When you finance a home, the lender/bank will require you to carry and pay for home owner's insurance.I will go into greater detail on taxes shortly.) Taxes differ by neighborhood, section, and something even address within. Taxes* (Each property is tax assessed by the county, and you will pay taxes to different entities of your community.Interest (This amount is collected by the bank as a fee for the loan, so in short, this is how the bank makes their money.).Principal (This amount is directly contributed to your loan balance each month.).You mortgage payment is typically broken down like this: If you are a first time home buyer, you might not know what makes up your monthly mortgage. ![]() But I am fast to remind them, that we do not have state income tax here in Texas. This just means, ours are usually a lot higher than other states. ![]() Most of my clients are moving here from out-of-state, and I have learned that there is a drastic difference between the way our property taxes work here versus other states. I have been doing do this for years, and I am very confident in my knowledge around monthly budgets and home purchase prices. Hi friends! One of my most favorite things to calculate for my clients is their projected monthly mortgage. ![]()
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