This week Ramsey County sent out the proposed property tax statements for 2010. I immediately opened my statement and noticed my property value went down close to $20,000 (which is expected in a declining market) but I was amazed to see my taxes went up by almost $300 for the year. Egad! Do property taxes ever go down? Seems the only time I remember a decrease was when MN Governor Jesse Ventura was in office.
What to do with your property tax statement? First compare the 2010 amount with last year’s figure – or better yet, the amount your mortgage company is currently collecting for taxes. If your taxes will be higher in 2010 start adding the monthly difference to your mortgage payment now. On your mortgage statement identify the additional amount should be applied to your escrow account. If you do not make the designation, the mortgage company may apply the difference to your principal balance.
Why should you do this? Once a year mortgage companies are required to analyze your escrow account. This analysis may not be done until next November, and by that time the difference could amount in a lot of money suddenly due the mortgage company or your payment will be increased significantly to cover the vast difference.
This year and every year review your property tax statement as soon as it arrives in the mail and make immediate adjustments to your monthly mortgage payment (only if taxes and insurance are going up).
Equal Housing Lender.