Unless you’ve already found the specific home you want to buy, you’re likely getting your loan pre-approval based on some assumptions.
One of these assumptions is the property taxes.
Since property taxes on similarly priced homes can vary, I have to estimate how much your property taxes will be.
How do I do this?
It’s actually quite simple. I start by going to www.rmls.com to do a search for the price range and area(s) you’re looking for homes in.
I then review the available homes on the market and find the average annual property taxes for these homes.
Next I divide the average annual property tax amount by 12 months and this is the monthly property tax amount I use when estimating your monthly payment.
It’s important to understand that this is just an estimate and the home you ultimately find will have it’s own property tax amount.
If you find a home with lower property taxes, then your payment could be lower than I initially estimated… and vice versa if you find a home with higher property taxes.
That’s why it’s a good idea to have an accurate mortgage calculator app installed on your smart phone. This will allow you to run your own payment estimates on specific properties as you find homes you’re interested in.
Get a free mortgage calculator app here: