Definition
An annual tax levied by local governments based on the assessed value of real property. Property tax rates vary dramatically by location, from 0.28% (Hawaii) to 2.47% (New Jersey) of the home's assessed value. Property taxes are typically collected monthly through escrow and can change annually based on reassessments and tax rate changes.
Related Mortgage Terms
- Escrow
A neutral third-party account that holds funds during the home purchase process ...
- PITI
An acronym for the four components of a total monthly mortgage payment: Principa...
- Assessed Value
The dollar value assigned to a property by a local tax assessor for the purpose ...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.