Taxes & How They Can Affect Your Payments

Mortgage and Lending with Benchmark Mortgage nmls 2143 NMLS # 198479

Whether you are a realtor with home purchaser or the client, it is essential in today's market to have a loan officer that will explain tax escrows, closing costs and payments in great detail with verbiage you can understand. 

Taxes are one thing that tend to escape most people in their explanations.  Especially if  purchasing new construction, home that was previously an investment property or a foreclosure.  Taxes can greatly change your monthly payment until home has been submitted for homestead exemption.  In Jefferson and Shelby County taxes are paid in arrears and assessed once a year on October 1.  If a home is purchased  that is taxed commercial after October 1 of any year commercial taxes will be escrowed thru September 30. 

Do you have questions?

Comments (2)

Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

What I am seeing are taxs based on a defaulted loan or bought under mortgage fraud.

i.e. the current foreclosure sale price 180K last sale price $220K and tax's based on the $220K .

This can make the home out of reach for some buyers because of the cost of pre paid tax's of an FHA loan requirements.

Oct 27, 2008 03:22 PM
Valerie Springer
Benchmark Mortgage nmls 2143 - Birmingham, AL
Home Loan Officer AL, FHA, VA, Conventional and Re

 So true!

Oct 27, 2008 03:27 PM