Download our Mobile App

Download our Mobile App

How Property Taxes Can Impact Your Mortgage Payment

Dated: September 7 2019

Views: 78

When buying a home in Texas, taxes are one of the expenses that can make a significant difference in your monthly payment. Do you know how much you might pay for property taxes in your state or local area?

When applying for a mortgage, you’ll see one of two acronyms in your paperwork – P&I or PITI – depending on how you’re including your taxes in your mortgage payment.

P&I stand for Principal and Interest, and both are parts of your monthly mortgage payment that go toward paying off the loan you borrow. PITI stands for Principal, Interest, Taxes, and Insurance, and they’re all important factors to calculate when you want to determine exactly what the cost of your new home will be.

TaxRates.org defines property taxes as,

“A municipal tax levied by counties, cities, or special tax districts on most types of real estate – including homes, businesses, and parcels of land. The amount of property tax owed depends on the appraised fair market value of the property, as determined by the property tax assessor.”

This organization also provides a map showing annual property taxes by state (including the District of Columbia), from lowest to highest, as a percentage of median home value.How Property Taxes Can Impact Your Mortgage Payment | Simplifying The MarketThe top 5 states with the highest median property taxes are New Jersey, New Hampshire, Texas, Nebraska, and Wisconsin. The states with the lowest median property taxes are Louisiana, Hawaii, Alabama, and Delaware, followed by the District of Columbia.

Bottom Line

Depending on where you live, property taxes can have a big impact on your monthly payment. To make sure your estimated taxes will fall within your desired budget, let’s get together today to determine how the neighborhood or area you choose can make a difference in your overall costs when buying a home.

Blog author image

Derek Taylor

Derek Taylor Realty Group, founded in 2008, is a full service real estate group, focusing on all areas of Fort Worth Real Estate including luxury homes, commercial properties and investment properties....

Latest Blog Posts

7 Most Instagrammable Spots in Burleson Texas

1. Bailey Lake ParkBailey Lake is an 8-acre lake stocked with channel catfish and perch and is the future home of walking/nature trails, fishing dock, and picnic area. There are even mountain bike

Read More

Homes Are More Affordable Right Now Than They Have Been in Years

Homes Are More Affordable Right Now Than They Have Been in YearsToday, home prices are appreciating. When we hear prices are going up, it’s normal to think a home will cost more as the trend

Read More

The Housing Market Is Positioned to Help the Economy Recover [INFOGRAPHIC]

The Housing Market Is Positioned to Help the Economy Recover [INFOGRAPHIC]Some HighlightsExpert insights are painting a bright future for housing when the economy bounces back – and it

Read More

Recession? Yes. Housing Crash? No way.

Recession? Yes. Housing Crash? No.With over 90% of Americans now under a shelter-in-place order, many experts are warning that the American economy is heading toward a recession, if it’s not

Read More