Property Taxes (Howe: rent, insurance, mortgage broker)

[shalom198]

I'm thinking about moving to SA. I'm looking to purchase a home around 175K to 225K. Is it true that taxes can run anywhere from 3K to 5K per year? How is anyone able to pay for these in a lump sum? Can they be stretched out throughout the year?

[hadleyzoo]

We have chosen to pay a little extra on our mortgage every month and the bank keeps our money in escrow to pay for the taxes and insurance. If you don't want to do that, you will have to save yourself or write a big check every year.

Here's the Bexar County Tax Collector's site: TaxOffice

Here's specifically about when taxes are due from the site: Taxes are due on OCTOBER 1 of each year. In order to be timely, payment of taxes must be postmarked on or before the due date. Taxes are delinquent on FEBRUARY 1 of each year and subject to penalty and interest. Taxes not paid by July 1 are turned over to our delinquent tax attorney for collection and are subject to an enforcement fee of up to 20%.

[sapphire]

We live in Bexar County, and our tax bill gives us the option of paying half by November 30th and the other half due........June, I think? I could run and get the bill, but I don't feel like it right now! Anyway, we are going to set up an escrow account eventually, but for now we do the split payment. Grudgingly, I must add.

[missmypfc]

Our property taxes out of escrow with Citimortgage and I hate that. I wish we wouldn't have set up an escrow account and just paid it on our own in October. The county says they are due Oct 1 but Citimortgage doesn't pay the county until December. Meanwhile, our escrow account sits there with $5500 making THEM money. We have a VA loan and our loan was sold three times in the first month, finally ending up at Citimortgage. I called them last week and asked why we even have to put anymore in the escrow for this year since there is already enough in there to pay taxes and insurance and they told me that we have to have a $900 "cushion"... again, money they get to use until we sell. However, any way you look at the situation, taxes here stink... our bill is $4333 outside of 1604. Ouch!
We are selling in two years because our mortgage payment will only continue to go up.
I have had nothing but problems with Citimortgage... anybody else hate them? We used Chase in our prior home (choosing them ourselves) and they were great-- this time we used a mortgage broker who sold our loan over and over. Live and learn, I guess.

[firstclassflyer]

Mortgage brokers don't sell loans over and over. They only help you find the first loan. Mortgages are then bundled into securities and traded on Wall Street. You loan being sold over and over has nothing to do with the broker.
Just wanted to clear that up. P.S.- My loan was sold on the day we closed . It happens.
Also, you may or may not have had the option to go without an escrow. Many loan programs require it.

[shalom198]

All,

Thanks for the great replies. We had bought a house several years ago, and now everything you are talking about (escrow) is starting to come back to me. I didn't realize at the time that that's why I was never concerned about taxes then. Again thanks.

[shalom198]

Here's another question:

Considering the high level of property taxes in Bezar County, can anyone convince me that purchasing a home there has significant FINANCIAL benefits that override the tax amount?

[sapphire]

Originally Posted by shalom198

Here's another question:

Considering the high level of property taxes in Bezar County, can anyone convince me that purchasing a home there has significant FINANCIAL benefits that override the tax amount?

Well, one day you'll actually own the home, rather than just paying rent on something you'll never own. The taxes are high, yes, but considering we have one of the lowest cost-of-living rates (depending on which list you believe), it all sort of balances out.

Why do you need convincing anyway? If you are unsure about purchasing a home here (your biggest lifetime investment usually), why are you seeking advice from anonymous posters in an internet forum? Seems like a risky way to manage your life. Oh, and it's Bexar County, no Z.

[Steel Man]

My property value went up $13,000 in the last two years, but my property tax went down $231 for the same period. This was due to the school tax rate going down as mandated by Texas law. Of course, with the continual rise in property values I'll be back where I was in about 2 years. Well...it was good while it lasted.

BTW: Tax bills go out in October, but as another member pointed out, are not late until February 1st, so the banks will hold on as long as possible (mine pays mid-November). I've also been lucky to have the same bank since the day I bought the house. I even got them to refinance down to 5.75% four years ago (only a year after my original loan of 7%).