Watch Your Mortgage

#SIMPLE.SAFE.SOLD!

Recently a person that bought a home freaked out when the taxes were paid by the mortgage company. Yes, that is normal when you escrow funds for taxes and insurance. However, taxes are due every year, and paying them in November will give the homeowner the maxim tax savings. The reasoning that you watch your statements is imperative to keeping track of the funds spent on taxes and insurance. In this person’s case, the taxes went up, and there weren’t enough funds. The mortgage company did pay the bill in November and sent the homeowner a letter. This homeowner will have to make up the difference, in this case, it is about $1,500. The tax bill comes out in Aug/Sept the homeowner should take a look at the new tax and then take a look at the mortgage statement, calculate just home much it will take to pay this bill. Do you have enough or not? This happens when you buy a home and the taxes are based on the past homeowner’s tax bill. The tax authority will reassess the amount based on the cost of the home and the new year’s tax adjustment. 

None of us like to pay taxes but we’re going to anyway. Even if you have your mortgage payment on auto-pay your still responsible. This is the short version and I know that some of us have paid and won’t think about it till next year. If you are not in an escrow position and pay your own, keep your eyes on the taxes next year when the bill comes in.

Reach out to me for your personal questions regarding Real Estate Lifestyle@floridarealestate.blog

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