Taxes (Dallas, Fort Worth, Bailey: real estate, coupon, homeowners insurance)

[Bailey9983]

I wanted to know if someone could help me out with the taxes in Dallas. I had asked before, but it was regarding Fort Worth and I believe Dallas taxes are higher. I just wanted to know what the average was in the area and, if you pay your property taxes as a lump sum or if they can be included in your mortgage. How does this work? I will be a first time home buyer and I am out of state so I just want to be sure I understand.

Thanks.

Bailey

[CallMeLaura]

The amount of taxes you'll pay depends on the tax rate and the appraised value of your property, minus any exemptions you can take (homestead, ag, senior, etc). The MLS should show last year's amount and you can calculate it yourself using the county's Central Appraisal District website.

You can escrow your taxes, which means you pay extra each month with your mortgage, and they take care of paying your bills when they're due. That's not a location dependent thing, though. Some people like the convenience of escrow and some like taking control of it themselves.

[BstYet2Be]

Originally Posted by Bailey9983

I wanted to know if someone could help me out with the taxes in Dallas. I had asked before, but it was regarding Fort Worth and I believe Dallas taxes are higher. I just wanted to know what the average was in the area and, if you pay your property taxes as a lump sum or if they can be included in your mortgage. How does this work? I will be a first time home buyer and I am out of state so I just want to be sure I understand.

Thanks.

Bailey

You can look up the county tax rates at Dallas County Web Site under Tax Dept. You can also look up individual property rates by city/street address if so inclined.

And, as the above post states, you have the option of either paying the taxes into escrow monthly along with your mortgage payments or paying it directly to the county in one lump-sum payment annually.

[lh_newbie]

Originally Posted by new2sa

You can look up the county tax rates at Dallas County Web Site under Tax Dept. You can also look up individual property rates by city/street address if so inclined.

And, as the above post states, you have the option of either paying the taxes into escrow monthly along with your mortgage payments or paying it directly to the county in one lump-sum payment annually.

There has been a change in the way mortgages are structured. Regardless of the % of equity you have, the finance companies are wanting you to pay into escrow. If you "opt out" of escrow, you pay a 0.25% fee. We just refinanced at a lower rate and had to pay this fee since we don't like someone else to earn interest on our money - unfortunately, it'll take a few years to earn that back, but in the long-run, it'll pay for itself if you're disciplined.

[nsumner]

Who told you that the taxes in Dallas are higher than Fort Worth???

The tax rate for a house in the city of Dallas, Dallas ISD, Dallas County is 2.51

The tax rate for a house in the city of FTW, FTW ISD, Tarrant county is 2.68

You get a discount called an exemption if the house is your primary residence (usually a few hundred a year) there is a separate formula for that too. Also, you get an exemption if you are a Veteran, over 65 or disabled or if you have an agricultural exemption (land with animals and no I don't mean a cat or dog).

The real estate taxes include the County, the City, and the School District (the biggest chunk) You pay the same if you use it or not.

Let's say you buy a house that cost you 150,000 in Dallas, the annual taxes on it would be 3765 and in Fort Worth would be 4020.

Here is a scenario of how your monthly payment will go. When you pay your monthly mortgage you are paying PITI

P = Principal (amount borrowed)
I = Interest (interest on the amount borrowed)
T = Taxes (real estate taxes)
I = Insurance (homeowners insurance, aka hazard, for fire, flood, roof, etc. )

depending on the rate you get etc... let's say that your monthly payment is $1300 (PITI) The taxes and insurances are referred to as escrow

191.25 goes towards the Principal
700.00 goes towards the interest
313.75 goes towards taxes
95.00 goes towards your homeowners insurance

Depending on your mortgage lender, you may qualify not having to pay the escrow monthly but that means that at the end of the year you have to come up with the entire amount of the taxes owed. The bill comes out in October and is due January 31. If payment is not in their hands by the 31st, a 7% penalty automatically incurrs.

The yearly insurance payment is due on the anniversary date of your home purchase.

I always recommend to clients (first time homebuyers especially) to opt to do an escrow so you don't have to worry about coming out of pocket with a huge chunck of change at the end of the year. Unless you are very disciplined and can make your money work for you. Some lenders will try to get you to pay the .25 (escrow waiver fee) but that is entirely negotiable and in no way a requirement.

Sorry for rambling (again)

If you want to know the tax rate for any city in the metroplex, please ask.

[ladysrodgers]

Speaking of property taxes......is it legal here for a mortgage lender to add an escrow account without the buyer's knowledge, without refinancing?

[Debsi]

Originally Posted by ladysrodgers

Speaking of property taxes......is it legal here for a mortgage lender to add an escrow account without the buyer's knowledge, without refinancing?

What do you mean, they just sent out a new payment coupon book with much higher payments than the year before?

[ladysrodgers]

Originally Posted by Debsi

What do you mean, they just sent out a new payment coupon book with much higher payments than the year before?

I mean my son made his mortgage payment, and the next statement showed he was in arrears - because the mortgage company had created an escrow account without even talking to my son about it. Yes, they increased his monthly payment (including the escrow) by $400. The mortgage company paid his property taxes without my son's knowledge, then created the account escrow account. My son had already made arrangements with the tax assessor's office himself, and they were't even late! When he called the assessor's office, they lamely said, "hey, we're not going to turn down a payment." That seems very illegal to me.

I don't know about Texas, but in Oregon and California, the only time an escrow account can be done, is either when a home is purchased, or refied, and even then, it has to be at the request of the customer.

[Lakewooder]

I have had a mortgage since 1993 on a property and GMAC Mortgage did the same thing to me. I have always paid the taxes myself. Not only did they pay the taxes due Jan. 31, 2007 - they also paid the taxes due on Jan. 31, 2008 a month or more ago.

They went up on my payment over $1,000. Never talked to me, never sent me a letter. I'm trying to straighten it out but all I can get are morons on the phone; my written correspondence (and copy of my cancelled check for Jan. 2007 taxes) has been ignored. It makes me want to just pay off the balance to get them out of my hair.

This must be some sort of new gimmick.

Class-action suit, anyone?

[ladysrodgers]

Originally Posted by Lakewooder

I have had a mortgage since 1993 on a property and GMAC Mortgage did the same thing to me. I have always paid the taxes myself. Not only did they pay the taxes due Jan. 31, 2007 - they also paid the taxes due on Jan. 31, 2008 a month or more ago.

They went up on my payment over $1,000. Never talked to me, never sent me a letter. I'm trying to straighten it out but all I can get are morons on the phone; my written correspondence has been ignored. It makes me want to just pay off the balance to get them out of my hair.

This must be some sort of new gimmick.

Class-action suit, anyone?

I think a class-action suit might be in order. My son has had the same experience trying to get it straightened out. His mortgage company did the same thing yours did. What I want to know, is how is it even legal??? His company is Citi Residential.