Understanding Property Taxes
How They Affect Your Mortgage Payment!
Every state has a property tax program in affect. Because your mortgage company will want to collect a tax payment every month as part of your mortgage it is important to understand how the property taxes are computed in your area.
The local taxing authority will assess the property to determine “market” value. This becomes your assessed value. With the property values changing so frequently the assessed value will generally be below the current market value on existing homes. New construction will tend to be assessed around 80% of the amount paid when the home was initially constructed. Here in York, PA we use what is called millage rates. Millage rates are a $$$ amount per $1,000 in assessed value. To determine how many “mills” you pay…take the assessed value and divide by 1000. Example: $75,000 assessed value = 75 mills.
The York county and your local municipality tax period runs from 1/1 thru 12/31 and are due around April. Rates are the same for York County but will vary within the townships, boros and municipalities. The local School District taxes run from 7/1 thru 6/30 and are generally due late August. Each district has a different rate.
Your mortgage company will collect 1/12th of the estimated taxes each month so that when the bills come due funds are available to pay the taxes due. This amount may change from year to year as tax rates increase or decrease or property values are re-assessed. Because there are local municipalities and different school districts within York, the amount of property taxes will vary from one area to another or from one property to another within the same district.
When Shopping for a home that fits within your monthly budget it is important to evaluate the taxes for each area. In some cases you will be able to spend more on the home price and keep the monthly payment within your budget and other areas you will need to shop for a lower priced home to achieve your target payment. As your local Real Estate Resource, I will help select homes that fit into your budget as well as meet your other important needs. I work for you so that I can do my very best to help you fine your perfect home! Wheather it is location, #of bedrooms, Monthly costs, size of back yard or style we are here to assist you and help educate you during the home purchasing process.
