property tax question? (Austin: tax lien, for sale, real estate) - City-Data Forum

mrsrobinson73 · 02-26-2009, 02:26 PM

hello. I am sorry if this has been covered somewhere else, but I haven't found it. Im just curious as I had read an article about people paying their property taxes ~ can you pay it monthly lumped into your house payment? can you pay it all once a year? And how do you go about finding out if you "qualify" for any exemptions? What is "homestead" exemption?

El Passeaux · 02-26-2009, 02:37 PM

I believe you negotiate the property tax payment with your mortgage company. They may let you pay at the end of the year but typically its added to the mortgage payment. I dont know the full explanation of the homestead exemption but i believe if you live in the house you can get a deduction on your property taxes. You need to apply only the first year you live in the house and you save something like 200-500 a year off your property taxes.

mrsrobinson73 · 02-26-2009, 02:51 PM

thank you el passeaux!

piyf · 02-28-2009, 05:42 PM

Quote:

Originally Posted by mrsrobinson73

hello. I am sorry if this has been covered somewhere else, but I haven't found it. Im just curious as I had read an article about people paying their property taxes ~ can you pay it monthly lumped into your house payment? can you pay it all once a year? And how do you go about finding out if you "qualify" for any exemptions? What is "homestead" exemption?

Depending on the loan type will depend if you have to have an escrow account or not. Escrow is just you paying a fix amount each month to go towards your taxes and the mortgage company pays it for you. If you don't have an Escrow Account then you get a bill and just pay it in a lump sum.

To qualify for Homestead the house has to be your primary residence. You fill it out and next year you'll get a reduction. Be warned though, you will get tons of bogus mail saying to send it here and a payment to Austin. Applying for homestead is free. Here's a link, just bookmark it and when you do finally get a house you'll have it ready.

Exemptions

piyf · 02-28-2009, 05:47 PM

Quote:

Originally Posted by El Passeaux

I believe you negotiate the property tax payment with your mortgage company.

If that were the case people would get hosed. There's no nego property taxes with a bank. You nego with the city about taxes. If your taxes are assessed at 4k a year the bank will simply divide it by 12 and tell you pay "X" amount a month to make that 4k.

mrsrobinson73 · 03-02-2009, 12:21 PM

Quote:

Originally Posted by danieloneil01

Depending on the loan type will depend if you have to have an escrow account or not. Escrow is just you paying a fix amount each month to go towards your taxes and the mortgage company pays it for you. If you don't have an Escrow Account then you get a bill and just pay it in a lump sum.

To qualify for Homestead the house has to be your primary residence. You fill it out and next year you'll get a reduction. Be warned though, you will get tons of bogus mail saying to send it here and a payment to Austin. Applying for homestead is free. Here's a link, just bookmark it and when you do finally get a house you'll have it ready.

Exemptions

thank you!!!!

piyf · 03-02-2009, 03:39 PM

I want to say if you put 20% down then you don't have to have an escrow account. With an FHA loan you have to have an escrow account. The reason being the home owner could not pay the taxes at the end of the year thus having a tax lien and the bank would be screwed.

People who don't like escrow accounts is usually for a few reasons and one main reason is this. If you have an escrow account the monthly payment for escrow goes into the mortage bank's account getting interest. And they pay the tax bill at the end of the year. So no matter what, they keep getting more money for interest. But if you don't have escrow you get to keep that money and collect interest on it for the year. But it's easier for them (what I think) to do it plus most banks don't pay you much of anything for 4k in the bank.

piyf · 03-02-2009, 03:44 PM

Do you already own the home?

Go here and sign up and ask this question here. Lots of people who know way more than me.

Real Estate, Homes for Sale - Zillow

Go to ADVICE and there's tons of info and you can post a comment there.

mrsrobinson73 · 03-03-2009, 12:07 AM

we are in the process of buying it ~ it closes on march 25th. So just trying to get this all sorted out now. I believe were having an escrow account, which is fine with me if that means I don't have to worry about paying the taxes (they do it all for me right, all I do is make my house payment)

thanks for all the tips!

piyf · 03-03-2009, 10:11 AM

Quote:

Originally Posted by mrsrobinson73

we are in the process of buying it ~ it closes on march 25th. So just trying to get this all sorted out now. I believe were having an escrow account, which is fine with me if that means I don't have to worry about paying the taxes (they do it all for me right, all I do is make my house payment)

thanks for all the tips!

Yes everything is included in your monthly mortgage payment.