It’s inevitable...taxes. Every year they come around and like it or not, we all have to pay them or else it can cost you big. When you are looking at buying a home you should know that above and beyond your mortgage, you can expect to pay something called property taxes. Understanding your property taxes is an essential part of budgeting for home buying. The last thing you want is to be caught off guard with a big tax bill! So today’s question is, what are property taxes and why do I have to pay them? Let’s find out why...
Property taxes are taxes based on the value of the property you own and are often assessed by the local government. They vary by area. You have to pay your property taxes every year, because, when it comes right down to it, it’s the law. If you have a mortgage, they are usually included in something called an “escrow”. Each month, you pay a portion of the estimated annual costs along with your principal and interest. At the end of the year, the lender adjusts your monthly escrow amount based on the actual tax.
When people pay their property taxes, we all benefit. It’s how our local government provides and pays for our roads, schools, libraries, street lights, parks, snow removal, etc. All of these services that we enjoy require money for regular maintenance. You’ll see exactly where your money has gone when you receive your tax property statement once a year. And you are given the opportunity to dispute anything you find questionable using the proper protocol.
As always, we’ve got your back. If you have questions regarding your property tax statement, give a member of the BHURDinUtah Team a call. We’ll happily answer your questions and make some calls if we need to.