How will my taxes be paid?
Unless you have signed Mortgage Center’s Escrow Waiver Agreement, real estate tax payments will be made by our servicing department on your behalf with funds drawn from your escrow account.
Please be aware that property taxes may go up considerably on purchase transactions from what the previous owner had paid. In the state of Michigan, the municipality where the property is located reassesses the taxable value of the property when it transfers ownership. As the property’s taxable value is no longer governed by the rate caps used when the property remains under the same owner, the required property taxes may increase considerably.
This Department of Treasury Property Tax Estimator can help you determine how your property taxes may adjust.
On new home purchases and construction properties, it is the responsibility of the borrower to submit the paperwork to the applicable municipality for Homestead Exemption. Michigan’s cutoff date for the year is May 1st. Your closing officer will review this with you at closing or you may contact a Mortgage Center representative for more information at (800) 353-4449.
- Will my fixed rate mortgage payment fluctuate throughout the life of the loan?
- What is private mortgage insurance (PMI) and how does it benefit me?
- What is an escrow account? Why do I need one?
- How long will it take to close my loan?
- Do I need an appraisal and an inspection?