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Published with permission from RISMedia.

If you dont pay your property tax bill, expect your lender to reach out.

Property taxes can be one of those homeownership costs that you dont think about when shopping for a home. But theyll hit you sometime during the buying process”there’s no hiding from them.

Property taxes vary by state, county and even city, and are generally based on a homes value. These taxes can be the main source of local government funding and can include other assessments, such as from a school or water district. They can also change annually if an assessment district raises its rates or if the value of your home changes.

Your local tax assessor can tell you the tax rate for your home. If your home is valued at $300,000 and your local tax rate is 1 percent, then your property taxes would be $3,000 annually. Other fees and assessments could be added to it.

New Jersey has the highest effective tax rate on residential property at 2.38 percent, while Hawaii has the lowest at .28 percent, according to the Tax Foundation.

How to Pay Your Property Taxes
However much your property taxes are, there are two ways to pay them.

An impound or escrow account is one way. This is set up by your mortgage lender when your loan is set up. The annual tax payment will be broken up into monthly payments that youll pay to your lender with your mortgage bill each month. The money for your property taxes is put into an escrow and the lender will pay your property taxes when theyre due. Some lenders also collect homeowner’s insurance payments this way. When your mortgage is paid off, youll be responsible for paying property taxes on your own.

You can also pay your taxes directly to your county tax collector or the appropriate government office that collects them.

Why Your Lender Cares
As part of your loan provisions, your lender will require you to pay property taxes when due. If you dont, it could consider that a default and foreclose on your property. Making all of your mortgage payments on time wont make up for missing a property tax payment, at least in theory.

Why does a lender care so much that you pay your property taxes on time? Because if theyre unpaid and the tax assessor (the county) puts a lien on the property, then the property cant be sold until the taxes are paid. Those unpaid property taxes hold more power over a lien than any other rights the lender has.

If the lender gets the property back through foreclosure, it will have to pay the unpaid property taxes” and thats a cost lenders dont want to bear.

Published with permission from RISMedia.

Owning a pet can teach children important values that can help them throughout life.

Giving and receiving unconditional love can teach acceptance and build self-confidence and trust.

Recognizing and addressing a pet’s needs can build responsibility and compassion.

Teaching a pet a new skill can help kids with patience and perseverance.

Understanding how animals communicate can help children understand human nonverbal communication.

Growing up with pets can teach kids not to fear unfamiliar experiences.

The death of a pet can help children learn to grieve in healthy ways.

Before you get a pet, consider the amount of time and money required to care for it and your family’s lifestyle.

Published with permission from RISMedia.

Often, those looking to purchase an additional home get confused between a second home and an investment property. However, the two are not interchangeable ” especially when it comes to their financing.

Second Home, Defined
A second home is real property that the homeownerintends to occupy in addition to their primary residence for part of the year. Usually, second homes are used as vacation homes. Second homes may also be properties that the homeowner visits on a regular basis.

Examples of second homes may include:

A condo in a city where you frequently conduct business
A beach house that you and your family occupy during the summer months
A house in a different state where you have seasonal work

Getting a Mortgage
If you can’t purchase a second home out-right, you’re going to go the traditional route and look into obtaining a mortgage. In order to qualify for a second-home loan, the property is usually required to be located in a resort or vacation area (like the beach or mountains), or be a certain distance from the borrowers primary residence.

Understanding Interest Rates
Most lenders consider second homes to be more of a risk than primary residences, but not as big a risk as investment properties. Typically, interest rates will show this; second-home mortgages may have lower interest rates than investment property loans, but not necessarily. It can all depend on the borrowers entire financial picture.

Understanding Rules
Second-home loans often include a second-home rider along with the mortgage. This rider states certain rules the borrower must abide by in order to qualify for the loan.

These rules often include the following:

The borrower will occupy and use the property as his/her second home
The property will be kept available for the borrowers exclusive use and enjoyment at all times
The property cannot be used as a timeshare or be subject to any rental pool arrangement
The property cannot be subject to any agreements that require the borrower to rent the property or give a management firm (or anyone else) control over the use and/or occupancy of the property.

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More and more people are looking for ways to increase their home’s energy efficiency”both to conserve energy for the good of our environment and to lower energy costs. The good news, environmentalists tell us, is that there are many ways to accomplish both goals without spending a great deal of money.

From a panel of national energy experts, here are proven ways to do your part:

Unplug appliances. Coffee makers and other kitchen appliances, and even your cellphone charger, draw energy even when not in use. Make it a habit to unplug them after use.

Caulk and weather strip. Properly caulked windows and doors help keep outdoor air from seeping into your home, increasing the overall efficiency of your heating and air conditioning systems. Materials are inexpensive and replacement doesn’t take a lot of time, so check for drafts and replace as needed.

Add insulation. Especially in older homes, adding insulation to the inside of your attic is well worth the minor investment in terms of efficiency and energy cost.

Lower the water temp. A water heater set higher than 120 degrees Fahrenheit wastes a lot of energy and creates a burn hazard for children. So while it might take a few extra minutes to get your kitchen faucet water really hot, it will be worth the savings to lower your thermostat.

Replace incandescent lights. The average household spends 11 percent of its energy budget on lighting. Traditional incandescent lights convert only about 10 percent of the energy they consume into light, while the rest becomes heat. New lighting technologies, such as light-emitting diodes (LEDs) and compact fluorescent lamps (CFLs), can reduce the energy use required by lighting by 50 – 75 percent.

Maximize laundry and dish cleaning. Don’t run a load until the machine is full. Clean the dryer’s lint filter frequently and use lower temperature settings or lower cleaning settings when clothes or dishes are not heavily soiled.

Hope you found this information helpful! Contact me for more insights and info.

Published with permission from RISMedia.