Taxes, Death and your Mortgage!

Ok, so you have been working with your real estate team to locate and purchase your home of your dreams.  This is a time consuming and educational experience.  Before you determine the property that suits your needs, you consider the price you feel comfortable making an offer.  You have thought out the process with your Realtor and Mortgage specialist.  Estimates and good faith documents tell you that you can afford the house, but CAN YOU?

In the beginning your payment is determined by your principle and interest from the sale price of the home and your taxes.  Then you add to that your insurance and any incidentals and the mortgage payment fluctuates to show the difference.

We listen to the tax conversations with the national presidential speeches and we must realize that if someone says no taxes that mean a tax burden shift.  The schools are a good example, if the State doesn’t fund schools they increase your house payment with levies.

To wrap it up, your payment could change by a couple of dollars per month or more with changes in the local tax system.  On the other hand if you purchased a home that was previously used as income property, your payment will probably go down within the next year because of the home owner exemption. In either case keep your eye on the changing climate.