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California Taxes and Insurance

The standard rule for estimating monthly property tax and hazard insurance payments
for a purchase transaction in the state of California are as follows:

Taxes = Purchase price X .0125 / 12

Hazard Insurance = Total Loan amount X .0035 / 12.

Example 1 - Purchase price = $500,000. Loan amount = $400,000.

Taxes = $500,000 X .0125 / 12 = $520.83/mo

Hazard Insurance = $400,000 X .0035 / 12 = $116.67.

Another Example (1st and 2nd). Purchase price = $500,000. Loan amounts = $400,000
1st and $50,000 2nd.

Taxes = $500,000 X .0125 / 12 = $520.83/mo

Hazard Insurance = ($400,000+$50,000) = $450,000 X .0035 / 12 = $131.25/mo

I figured this could help some with figuring out numbers :)

Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.caloan.com/

Blog: http://activerain.com/blogs/lendingmagician

"You find the perfect home, we'll find the perfect loan!"

Posted by Scott Gormley on 12/12/2006 12:29 AM

Comments (2)

california, taxes, insurance, calculating, math, real, estate, loan, home, purchase

This post has been included in California Information

2 Comments on California Taxes and Insurance

DEC

2006

Did you get the tickets? Did you tent out or just buy them on EBAY?

We had the tickets already in hand for the floor when we bought them on ebay. But, there were 14,000 ga tickets sold for the floor..so we were actually camping out to get the front row...which we did :) It' rocked and my wife said it was well worth it..

Scott

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