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Local governments and school districts raise a large portion of the money that goes toward paying for education, emergency services, transportation and other public goods through property taxes. The amount that individual homeowners pay is determined by the assessed property value and the mill rate. Each of these is calculated through a complex process.

How Property Values Are Assessed
An assessor will determine the value of your home, which can change over time due to depreciation, improvements you make, the local economy and housing market. Assessors may use any of three methods to calculate the value of a home. In some cases, they use a combination of two or more methods.

One way to determine the value of your home is by looking at the sales of comparable properties in the area. Those figures are used as a baseline and can be adjusted to account for the location of your property, the amount of land it sits on and any upgrades you have made.

Another way to assess the value of your house is to figure out how much it would cost to replace it if it were destroyed, a calculation that will include local material and construction costs.

A third method of assessing your propertys value is to calculate how much income you could generate by renting it. The assessor will consider market value and will deduct costs to manage and maintain the property, as well as insurance premiums and taxes.

You should receive a statement showing the assessed value of your property. If you disagree, you can submit relevant information and ask the assessor to review the calculation taking the additional facts into account. If you accept the assessment, you will receive a separate property tax bill.

How Tax Bills Are Calculated
A mill levy is a tax rate used to determine how much property owners must pay. One mill is equal to one-tenth of one cent. County and local governments and school districts set their own mill levies based on the amount of money they need to raise and total property values in the area under their jurisdiction. Property owners then pay a mill rate that can include a total of county, state or town and school district mill levies.

The mill rate will be multiplied by the assessed value of your property to determine your property tax liability. You may receive a tax bill once a year or once every several years, depending on the governments policy. If you have any questions about how much you will owe and when, you can visit the assessors office or look up the information on its website.

The Benefits of Understanding How Property Taxes Work
Property taxes can vary widely based on where you live, the value of your home, and how much money the local government and school district need to raise. Knowing how your homes value is assessed and how property taxes are calculated can help you avoid being shocked by the size or timing of the bill.

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Here are a few beloved lawn games the whole family can enjoy!

Bocce Ball

Though commonly played on the lawn, bocce is traditionally played on a court that can give an elegant look to any yard.

Croquet

A manicured lawn set up with croquet wickets might look formal, but in reality, its a laid-back game for the whole family.

Shuffleboard

Having surged in popularity in recent years, homeowners who have the space are putting shuffleboard courts in their backyards.

Badminton

A great activity for the family to enjoy together, badminton is easy to put away when not in use.

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In the wake of Hurricanes Harvey and Irma, the latest storms to devastate thousands of American homes, homeowners may find themselves wondering whether to consider flood insurance.

For those in areas perceived as vulnerable, it’s no decision since its required as a condition of their home loan. For others, it raises the same questions as other types of insurance; namely, when does the premium outweigh the actual risk? A $650 annual premium, the amount the National Flood Insurance Program (NFIP) cites as average, seems like a lot to pay if you never use the coverage.

Since flood damage is not covered under the average homeowner policy, Nerdwallet, a consumer advisor website, tells USA Today what factors to consider in deciding whether to purchase flood insurance:

Even a minimum amount of flooding can have disastrous financial results. According to the NFIP, one foot of water could cause $27,150 of damage to a 1,000-square-foot home. That said, if you live in a low-risk zone that has never sustained serious flood damage, weigh the coverage cost against the likelihood of filing a claim. A reasonable option might be to set aside money in a repair fund”a good idea for homeowners in any case.

Consider having the amount you’d pay in premiums automatically deposited each month into a high-yield checking or money market account, which nets better returns than simply saving cash. And check with a financial advisor because some states allow customers to place emergency funds in Catastrophe Savings Accounts exempt from state income tax. (Federal taxes still apply, and disbursements are taxed as normal if withdrawn for purposes other than flood repairs.)

Where to Buy, How to Save

Available national (NFIP) or state programs may be best, but some private insurers offer flood insurance with lower premiums, so get quotes. You can save a little by choosing a higher deductible or less coverage. Just be sure you can come through with any needed cash.

The Bottom Line

If you live in a moderate to low-risk area, check with your financial advisor or real estate agent. A flood policy in such an area could cost less than your monthly cell phone bill, and could save you money if your home sustains flood damage.

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Paying less than 20 percent on a down payment on a house will likely require buying private mortgage insurance by the lender.

The insurance, called PMI for short, is used to reimburse the bank if you default on the loan.

It isnt too expensive”usually between 0.5 and 1 percent of the entire loan amount paid annually. On a $100,000 loan, a 1 percent PMI fee equals $1,000 a year, or $83.33 per month. That may not be enough money to make or break a home purchase, but its money that homeowners would rather be saving or spending elsewhere.

There are a few ways to avoid PMI, with the simplest being to have a down payment of 20 percent or more. You can put off buying a home until you can come up with that much money, though thats probably not the answer youre looking for.

Another solution is once youve bought a house, you can cancel PMI once the loans principal balance drops to 80 percent of the homes original appraised value or its current market value. By paying more of the principal each month, for example, you can have 20 percent equity in the home quicker and then cancel PMI.

Your lender may automatically cancel PMI when your mortgage balance is 80 percent. By law it must tell you at closing how long it will take with your monthly mortgage payments to cancel PMI.

You may be able to reach that 80 percent threshold by having your home reappraised if you think it has gone up in value from the original sales price or appraised value.

Another option is a piggyback mortgage. This is a second mortgage or home equity loan that is taken out with a first mortgage. For example, an 80-10-10 piggyback mortgage covers the purchase price with 80 percent from the first mortgage, 10 percent from your down payment, and 10 percent from the second loan, also called a piggyback loan.

This allows you to have a low down payment of 10 percent, but not have a loan-to-value balance of 90 percent that would require PMI. Instead, the two loans lower the LTV and dont require PMI.

Finally, theres the option of lender-paid mortgage insurance, or LMPI. It includes the cost of PMI in a higher mortgage interest rate, meaning youd pay more in interest over the life of the loan.

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