Today we’re continuing our series about the unexpected costs of homeownership with a discussion of taxes.
When you buy a house, you are responsible for the property taxes. Most of the time, that’s included in your payment unless you have an arrangement otherwise.
However, usually when you purchase your house, the bank takes money out at closing to establish an escrow account to pay your taxes.
As your taxes increase every year, the money that is required by the mortgage company will increase as well so that they can pay your taxes for you.
If you’re not extremely responsible with money, it’s very important that you let the bank escrow your taxes so that you don’t have a huge bill come up that you won’t be able to pay.
As always, if you have any questions, please feel free to contact me. I’d be glad to help you.