Mortgage Archives – Page 15 of 148 – First Rate Financial Group

10

Aug

Mortgage

Disputing Your Property Tax Assessment Can Save You Money

Property taxes can be a substantial financial burden for homeowners and property owners. Each year, local governments assess the value of properties to determine the amount of property tax owed. However, these assessments are not always accurate and can result in higher tax bills than necessary. Disputing your property tax assessment is a proactive way to potentially save money and ensure you’re paying a fair and equitable amount.

Reasons for Flawed Assessments:

Property tax assessments are not immune to errors and discrepancies. Several reasons can lead to an inaccurate evaluation of your property:

Market Value Misjudgment: Assessors may rely on outdated or incorrect data, leading to the misjudgment of your property’s market value.
Assessment Methodology: The methodology used to calculate property values might not consider all relevant factors, such as recent improvements or neighborhood changes.
Comparable Properties: Assessors may use inappropriate comparables that lead to an inflated assessment that does not accurately reflect your property’s true value.
Data Entry Errors: Mistakes can occur during the data entry process, resulting in incorrect information being used to determine your property’s value.

Steps to Dispute Your Property Tax Assessment:

If you believe your property tax assessment is flawed, follow these steps to initiate the dispute process:

Review Your Assessment: Obtain a copy of your property tax assessment and thoroughly review it for any inaccuracies or discrepancies.
Collect Evidence: Gather evidence to support your claim, such as recent property appraisals, photographs, or documentation of any property-related issues.
Contact the Assessor’s Office: Reach out to the local assessor’s office to inquire about their specific procedures for filing a property tax appeal.
File an Appeal: Submit a formal appeal with all the supporting evidence to the relevant authorities within the designated timeframe.
Attend the Hearing: If a hearing is scheduled, be prepared to present your case and provide evidence to support your claim.
Consider Mediation: Some jurisdictions offer mediation as an option to resolve assessment disputes. Mediation can be a less adversarial approach to reach an agreement.
Consult with Professionals: If necessary, seek advice from real estate professionals, appraisers, or tax consultants to strengthen your case.

Disputing your property tax assessment is a proactive way to ensure you’re paying a fair amount of property tax and not overpaying due to inaccuracies or flawed evaluations. By taking the time to review your assessment, gather evidence, and follow the appropriate procedures, you can potentially save a considerable amount of money and promote fairness within the local tax system.

09

Aug

By First Rate Financial Group

Mortgage

Why Is My Mortgage Escrow Account Sending Me a Check?

Why is My Escrow Account Sending Me A Check If you’re a homeowner with a mortgage, you may be familiar with the concept of an escrow account. This financial tool is designed to simplify the management of property-related expenses by combining certain costs, such as property taxes and insurance, into one account. Typically, your mortgage servicer collects a portion of these expenses with each monthly mortgage payment and holds the funds in an escrow account to cover these bills when they become due.

Various factors can lead to fluctuations in these estimated expenses. If the actual costs turn out to be lower than anticipated, your escrow account may end up with an excess balance, resulting in a refund check being sent to you.

Overpaid Escrow Account:

One common reason for receiving a check from your mortgage escrow account is that it has been overfunded. An escrow account’s purpose is to ensure there are sufficient funds to cover property taxes, homeowners’ insurance, and, in some cases, private mortgage insurance (PMI) when they come due.

Reassessment of Property Taxes:

Property taxes are a significant component of an escrow account, and they can change over time due to reassessment by local authorities. If your area’s property tax rates decrease or if your home’s assessed value is reduced, the amount needed to cover property taxes may decrease.

Insurance Premium Reduction:

Similarly, if your homeowner’s insurance premium decreases for any reason, such as a change in coverage or a reduction in risk factors, your escrow account may have extra funds available. Your mortgage servicer will then send you a check for the surplus amount.

Escrow Account Audit:

Mortgage servicers occasionally conduct audits of escrow accounts to ensure accuracy and compliance with applicable laws. If the audit reveals that there is an excess balance, they will send you a check to rectify the situation.

Refinancing or Payoff:

If you recently refinanced your mortgage or paid off the loan entirely, your escrow account may have a surplus after all outstanding expenses are settled. In such cases, you’ll receive a refund check for the remaining funds.

Receiving a check from your mortgage escrow account can be a pleasant surprise, as it indicates that you’ve overpaid into the account, or your expenses have decreased. The refund serves as a return of your money and can provide a little extra financial flexibility.

Remember that while having an overfunded escrow account is beneficial, it’s crucial to regularly review your escrow statements and communicate with your mortgage servicer about any changes that could affect the account’s balance.

04

Aug

By First Rate Financial Group

Mortgage

Will Buying A New Car Impact The Ability To Buy A New Home?

Will Buying A New Car Impact The Ability To Buy A New Home? Making major life decisions often involves a delicate balancing act. Among the most significant choices individuals face are buying a new car and purchasing a new home. Both ventures represent milestones in one’s life, bringing excitement and anticipation. However, there is a complex interplay between these two financial endeavors that can significantly impact a person’s ability to achieve their dream of owning a new home. Here are some factors to consider:

Debt-to-income ratio: When you apply for a home loan, your lender will consider your debt-to-income ratio (DTI) to determine whether you qualify for a mortgage. Your DTI is the amount of debt you have compared to your income. High DTI ratios are a red flag for lenders as it indicates a greater risk of defaulting on the mortgage. Therefore, potential homeowners should carefully assess the impact of adding a car loan to their financial portfolio. If you take on a new car loan, it will increase your debt load and could make it more difficult to qualify for a mortgage.

Down payment: A new car loan will require a down payment, which means you’ll have less money available for a down payment on a new home. Lenders generally prefer borrowers to have a sizeable down payment as it demonstrates financial responsibility and lowers the loan-to-value (LTV) ratio, which affects the terms and interest rates of the mortgage. By prioritizing a home purchase over a new car, potential homeowners can better secure their financial position and increase their down payment amount.

Credit score: Taking out a new car loan can impact your credit score, which is an important factor in getting approved for a mortgage. If you have a high credit score, you’ll likely qualify for better interest rates and terms on a mortgage. However, if your credit score drops due to the new car loan, it could make it more difficult to qualify for a mortgage or result in a higher interest rate. Opting to purchase a new home before buying a new car allows borrowers to present a more robust credit profile, potentially resulting in a more favorable mortgage deal.

Overall, it’s important to consider how taking on a new car loan will impact your finances and your ability to buy a new home. It’s important to make sure that the cost of the new car fits within your budget. If you’re already stretching your finances to make car payments, it may be more difficult to save for a down payment on a new home or make mortgage payments. It’s always a good idea to speak with a financial advisor or mortgage lender to understand how your financial decisions will impact your ability to achieve your goals.