I regards with buying a condo, do you pay your property taxes monthly or can you pay them at the end of the ye

Question

Looing to buy a condo and was wondering in I could pay the propery all at once or do I have to pay them every month, with a FHA loan?

Answer 1

I'm not sure what state you lived in, but first time buyers are almost always required to open an escrow account in order to collect tax monies and insurance fees and then the loan servicer pays the taxes per the schedule of the tax accessor. Most property taxes are paid quarterly.

Your assessments to the HOA, however, will be paid monthly.

Answer 2

Property taxes are either escrowed through your mortgage or you pay directly, depending on the arrangements you make with your mortgage company,

I have a condo and the taxes are escrowed through the bank. Part of my mortgage payment covers the taxes.

Hope this is helpful

Answer 3

depends on what your choose to do you could have the taxes added to your payment every month that money will then be put into what is called an escrow account where the money will be taken from twice a year. this is how i have mine set up i pay my taxes twice a year. the city takes the money from the escrow

Answer 4

Typically for your first home loan, your taxes (and maybe insurance) will be escrowed (collected monthy and they will pay property taxes from that).  That way your lender can be sure they will have the tax money when taxes are due.

If your county treasurer has a website, it is a good idea to keep track of tax payments for your property just to make sure no mistakes are made (which can happen).

Note that only tax you are liable for and is actually paid is deductable (if you itemize deductions).  So if you get some credit from previous owner towards tax through closing, you cannot deduct taxes until paid from your escrow when that credit is used up.

Answer 5

With an FHA loan, the mortgage company will put your taxes in escrow every month and pay them for you when due.  So they take your total annual taxes and divide by 12, and then add that amount to your monthly payment and put it in a fund on your behalf.  Then the taxing authority sends them the bill (or they get an electronic notice of it more likely), and they pay it out of that fund.  About once a year, you'll get a statement showing the balance in that fund and what was paid, and then they'll adjust your monthly payment up or down slightly for the coming year's expenses.  Typically, they'll do the same thing with your homeowner's insurance.  

Once you have payed down your loan to about a 20% equity ratio, you'll have the option of ceasing to make additional monthly payments to fund that escrow account, and just paying the taxes and homeowner's insurance on your own when they come due.  You may be able to cancel the escrow earlier as well, depending on your lender's rules.  But for most people, it's just easier to continue it indefinitely and let the mortgage company pay the bills.

NOTE: You'll also have a monthly fee added to your payment called PMI (mortgage insurance).  This is NOT part of this fund, it's just an insurance policy for the mortgage lender against your default.  This as well will probably continue until you reach 20% equity ratio.

Congratulations on your new home!