The Real Estate Edge

The Real Estate Edge

​​Disputing Your Property Taxes to Lower Your Mortgage

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Tax is one of the most constant things in the world–this includes property taxes. However, not everyone knows that certain tax exemptions and tax returns can reduce your property taxes. 

The most important thing is that these property tax reductions should also reflect on your mortgage. If you’re looking for a legal way to reduce your monthly mortgage, then property tax is the answer!

 

What is property tax? 

 

Property tax is usually based on the value of the owned property, including land. It is typically a real estate ad-valorem tax, considered a regressive tax. 

 Your property tax is calculated by a local government where the property is located and paid by the property owner. 

 

How does property tax differ through time?

 

Your property’s market value differs every year, and this should reflect on your property tax. 

The fair market value is typically the listing price for your home when you sell. If you plan to stay in your home, you want your property to appraise for less. This will lower your property tax bill.

 

How to dispute property tax to lower your mortgage?

 

  1. Check your records 

 

Look back at your previous property tax assessments. Check the details or reasoning behind the amount of property tax, such as the valuation per square foot, property location, etc. Prepare all these data as these are the ones you’re going to use in disputing your property tax.

 

  1. Contact your property assessor.

 

Every community has its local property appraisers. Discuss the discrepancies in information present on your previous property tax assessment with him.

 

  1. Look for comparable properties

 

It’s best to check notes with the same properties around your neighborhood. Properties with the same square foot, location, and house design mostly likely have the same property tax. 

If their property tax is lower than yours, it’s time to file a dispute.

 

  1. Make an appeal

 

Even the state has a tax dispute appeal process which you can find on your local tax units. You can then request a mortgage reduction from your loan provider if your appeal is approved. 

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