You’ve found the perfect piece of hunting land or farmland. In addition to your monthly payments on the property, don’t forget about property taxes! Every home or land owner pays taxes on their property that is used by the local community to help fund projects and services.
But how are these taxes paid?
Paid Monthly Through Your Mortgage Payments
One option of paying your property taxes is through your monthly mortgage payments. When you make your payment each month, part of it is transferred into an escrow account that is used to pay taxes when they come due. This is helpful to those property owners who prefer not to pay the sum themselves when it comes due.
If you are paying your property taxes via escrow and get a tax bill from your city, don’t panic. Often, this is just for your records and have already been taken care of. If in doubt, confirm with your mortgage company.
Paying Your Local Tax Office Directly
If you don’t pay your property taxes via monthly mortgage payments, you will simply pay your local tax office directly. These payments are in installments throughout the year and depending on where you live, you have different methods of paying it:
- Check or money order through the mail
- Online using debit or credit card
- Online using a eCheck
- By telephone via debit or credit
Check For Unpaid Property Taxes At Time of Purchase
Because property taxes are not static, it is essential that you know you have enough money to pay for them before you purchase a home. You should also check to ensure that the previous owners didn’t leave any property taxes unpaid—otherwise you could be responsible for them.
The agents at Merchant of Homes are seasoned with the knowledge and experience needed to guide you through the journey of purchasing a home. We stand ready to answer your questions and provide you with solutions.