DAILY FINANCE

The majority of homeowners in this country have their property taxes paid by their mortgage company. The remaining homeowners pay their taxes biannually on October 30 and April 30. If the mortgage company has been paying the property taxes over the years, there is a very good chance that when the property assessment is sent in the mail, we pay little or no attention to it other than noticing the appreciation and value of our investment. It is more likely that the people who pay their property taxes every year will notice an unusual increase in the assessment on their home or land. No matter which way you pay your property taxes, it is important to periodically make sure that you are being assessed in line with other similar properties or homes in your neighborhood. In most major cities, this information is readily available online. If it isn’t available online, it can be found at the office of the tax assessor. If you uncover a situation in which you believe that you are paying too much in property taxes, you are entitled to go before a committee generally comprised of volunteers, to have your case heard. Hearings that result in a successful reduction of property taxes may be for the following reasons:
1) Severe internal damage to the home that cannot be noticed by a property tax appraiser from the outside. This generally requires written bids estimating the cost of repairs to be submitted when the case is heard.
2) Similar properties and homes in the surrounding neighborhood are assessed significantly lower than your home.
3) For insurance purposes you had an appraisal done on your home, and the appraisal is significantly lower than the property tax appraisal.
One other area we tend to overlook in regards to our mortgage is private mortgage insurance (PMI). PMI is generally required on mortgages that have little or no down payment. When the equity in the home rises above 20% of the mortgage, we are entitled to cancel our private mortgage insurance as it is no longer required. This will result in significant savings to us over the term of our mortgage.