When buying a home in Roseville, California, it’s easy to focus on your interest rate, loan term, and monthly payment—but don’t forget about property taxes. These local taxes play a significant role in your total housing costs and can directly impact your mortgage.
What Are Property Taxes?
Property taxes are annual fees paid to local governments based on the assessed value of your home. In Roseville, these taxes fund essential services like schools, police, fire protection, and public infrastructure. The base property tax rate in California is typically 1% of your home’s assessed value, but local assessments and bonds often increase that rate.
How Do Property Taxes Affect Your Mortgage?
If you’re using a traditional mortgage in Roseville, your lender may include your property tax payments in your monthly mortgage bill through an escrow account. This helps ensure your taxes are paid on time, but it also increases your monthly payment amount. When budgeting for your mortgage in Roseville, CA, you’ll want to factor in estimated property taxes so there are no surprises.
Reassessments and Rising Costs
Keep in mind that property taxes can rise over time. While California’s Proposition 13 limits increases in assessed value, any major home improvements or a home purchase at a higher market value will likely trigger a reassessment. This could raise your tax obligation and, in turn, your monthly mortgage payment.
Why It Matters
Understanding property taxes is crucial for choosing the right loan and budget. A mortgage lender familiar with Roseville can help estimate your property tax burden and explain how it fits into your long-term financial picture.
Want help understanding how taxes affect your monthly mortgage payment in Roseville? Fill out the contact form below and let our local experts guide you through your options.