Central Pennsylvania Nesties
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County & School taxes ...
DH and I are checking out properties and I came up with a question that he's not too sure of:
Are County and School taxes included in a mortgage?
Re: County & School taxes ...
They can be. Its called escrow.
You can usually choose to escrow or to pay less each month and pay the taxes on your own.
I wasnt given the option- I had to escrow for the first two years-and I never changed it. The benefit of not escrowing is that you earn the interest each month, but right now interest rates are low.
We were given the option to escrow or not and we went with escrow. I like knowing that I don't have to worry about the tax bills when they come unless I need to forward them to the mortgage company if they didn't already get them.
Oh and depending on where you are looking obviously will make the tax rates vary but you should also watch for areas that charge a "privilege" type tax like Derry Twp.
The difference in our mortgage payment with adding in escrow ended up being about $300 a month more than just paying the mortgage payment only.