Quick question about property taxes... (insurance, mortgage, buyers)

[mxd.Brit]

Do you have to pay property tax in one payment or in installments. And is the tax bill sent out in September if yes, what happens between now and September.

Thanks

[kagmypts]

Your property taxes are all due at one time. However, if you have a mortgage on your house, the mortgage company will escrow a monthly property tax amount (your annual property taxes divided by 12), in essence making your property taxes monthly.

We currently live in Cobb County, and our taxes are due in October. We receive our bill in September, and since we have a mortgage on our house, we forward our tax bill to the lender. I hope this helps.

[mxd.Brit]

Thanks that does help. We will have a mortgage on the house, so does the mortgage company add the tax automatically or do we request it. Sorry we are 1st time buyers so you have to break it down.

Thanks again

[AtlDad]

Typically the mortgage company sets up your monthly payment to include principal, interest (P+I), homeowner insurance, and property taxes. So, if you have a $200K mortgage, your P+I will be a little over $1200. If your annual taxes are, say, 1% (which would be low) that would be $1200/year or $120/month. Then, your Insurance may be $600/year which is $50/month. In this scenario, your total monthly payment to the mortgage company would be $1200+$120+50 or about $1370/month, $170 of which goes in to an escrow account used to pay your annual taxes and insurance.

The mortgage company will also want a 3 month sor so reserve. So, if you close in April,
the seller will put 3*$170 in to the escrow account for January-March. You will also put 3*$170 as a reserve and then will pay $170/month in to the account. That way, when the payment comes due in October, there are the 10 payments for January-October plus the 3 months reserve so there is enough money in the account to pay the 12 months worth of taxes.

Hope that helps.

[ReturningWest]

It depends on what county you live in, some are due in the fall some early spring and some like Gwinnett are payed in two installments.

[mxd.Brit]

Originally Posted by AtlDad

Typically the mortgage company sets up your monthly payment to include principal, interest (P+I), homeowner insurance, and property taxes. So, if you have a $200K mortgage, your P+I will be a little over $1200. If your annual taxes are, say, 1% (which would be low) that would be $1200/year or $120/month. Then, your Insurance may be $600/year which is $50/month. In this scenario, your total monthly payment to the mortgage company would be $1200+$120+50 or about $1370/month, $170 of which goes in to an escrow account used to pay your annual taxes and insurance.

The mortgage company will also want a 3 month sor so reserve. So, if you close in April,
the seller will put 3*$170 in to the escrow account for January-March. You will also put 3*$170 as a reserve and then will pay $170/month in to the account. That way, when the payment comes due in October, there are the 10 payments for January-October plus the 3 months reserve so there is enough money in the account to pay the 12 months worth of taxes.

Hope that helps.

Thanks for the explanation. We close next week, waiting for the figures

[mxd.Brit]

Originally Posted by ReturningWest

It depends on what county you live in, some are due in the fall some early spring and some like Gwinnett are payed in two installments.

We will be in Henry county