property tax question

[dabuddha]

So when we purchased our house this January, our property tax was ~$3800/yr. We got our new assessment (which was about 120k lower than the previous year). And it looks like our county is going to raise the tax rate to ~$1.212 per $100. This would effectively make my new property tax = $3066.36/yr.

So my question is, how does it play out in terms of my mortgage payment?

EDIT: Sorry meant my escrow account (which includes the mortgage pmt, prop tax, and insurance)

 

[sdifox]

what has your property tax got to do with your mortgage?

 

[dainthomas]

Originally posted by: sdifox
what has your property tax got to do with your mortgage?

Some people set up an escrow for taxes, and it's lumped in with the payment.

 

[spidey07]

Originally posted by: sdifox
what has your property tax got to do with your mortgage?

This.

But you're probably talking about the escrow account (yet another interest free loan of your own money to somebody). The mortgage company will adjust your payment to reflect a change in taxes after they pay the bill.

 

[sactoking]

Originally posted by: sdifox
what has your property tax got to do with your mortgage?

The tax is likely collected through escrow, and can be considered part of the payment.

 

[Codewiz]

Call your mortgage company and tell them to readjust based on your new property tax rate.

 

[jaha2000]

Keep in mind that most Mortgage companies will not adjust your escrow mid year...
meaning you are going to pay the same amount this year, you will get a check for extra escrow money in jan 2010 and your payment will adjust at the same time.

 

[dabuddha]

Originally posted by: spidey07

Originally posted by: sdifox
what has your property tax got to do with your mortgage?

This.

But you're probably talking about the escrow account (yet another interest free loan of your own money to somebody). The mortgage company will adjust your payment to reflect a change in taxes after they pay the bill.

Yeah you're right. It's the escrow account I'm thinking of since that payment includes my mortgage + property tax + insurance

 

[KentState]

You will receive a refund from the escrow account every 6 months or whenever property tax is collected.

 

[dabuddha]

Originally posted by: KentState
You will receive a refund from the escrow account every 6 months or whenever property tax is collected.

ahh okey doke that answers my question Thanks all!

 

[krylon]

Originally posted by: spidey07

Originally posted by: sdifox
what has your property tax got to do with your mortgage?

This.

But you're probably talking about the escrow account (yet another interest free loan of your own money to somebody). The mortgage company will adjust your payment to reflect a change in taxes after they pay the bill.

Details? How can you get out of this?

 

[spidey07]

Originally posted by: krylon

Details? How can you get out of this?

You normally can't without refinancing as the escrow account is part of your terms. It's best to put the money into an interest bearing account and pay property tax/insurance yourself from that account. Your mortgage payment is then only principal/interest.

 

[JeffreyLebowski]

Haha, don't you just love how taxes work. The jack the rate up a little bit every year it seems, even though home values were going up, now that values are in the toilet, they jack the tax rates WAAAY up.

 

[SonnyDaze]

Originally posted by: jaha2000
Keep in mind that most Mortgage companies will not adjust your escrow mid year...
meaning you are going to pay the same amount this year, you will get a check for extra escrow money in jan 2010 and your payment will adjust at the same time.

This. And take the refund (if it's large) and make an extra payment.