Every year, millions of homeowners make the same mistakes over and over again. They pay their property taxes without even looking into why those figures are the way they are. While that may seem odd, it is actually something that people overlook. We simply think that the taxes are what the taxes are. However, on many properties, homeowners are paying more than they should be, especially if they are paying a mortgage along with it.
Homestead exemptions, senior discounts and more. Yes, these not only exist but they are often overlooked and that’s why people make the mistake of paying way more on their property taxes than they should, and while that may not seem like a lot, over the course of five to ten years it can add up to be thousands of dollars.
What Are We Paying In Property Taxes?
The reality is that whatever we are paying on our home usually covers the loan, the taxes, the insurance as well as anything to keep it functioning. This is pretty standard but what many are not aware of is that there are literally dozens of potential ways to cut down costs on a property. However, before you can save, you have to understand what you are paying for.
Based on the size of your property, the county you live, current prices, how long you’ve owned the property and more, the county will make a determination as to what you need to pay in taxes each year. That money will go to support a wide variety of programs in your community including public schools, waste disposal and so forth.
Can They Be Lowered?
Nothing you pay for your home is set in stone and you can always find creative ways to cut costs. The best way to start is by looking for information that is available to residents in your state. While the county makes the rules, you first want to look for any state exemptions as this would be more common than something your county specifically offers. Next, look at ways to adjust your loan balance, perhaps by refinancing and at the same time you can also look at ways to cut back on costs like your insurance and even your taxes.
While the refinancing may cost you more now, depending on what your interest rates are, it may be smarter to refinance now rather than wait. An example of this would be someone who has knocked their mortgage down significantly, has just added a new roof to the property and has been there for years. If you are able to adjust, even at a higher rate, you may be able to significantly cut down what your monthly payment is and also see your additional costs like property taxes and insurance go down as well. However, you can always lower your taxes without refinancing as well. That’s why it’s important to do your homework and know what your options are. Financing a home relies on a variety of factors and variables and the more you can adjust things to your advantage, the more you will save.