When buying a home, taxes are one of the expenses that can make a significant difference in your monthly payment. Do you know how much you might pay for property taxes?
When applying for a mortgage, you’ll see one of two acronyms in your paperwork – P&I or PITI – depending on how you’re including your taxes in your mortgage payment.
P&I stands for Principal and Interest. Both are parts of your monthly mortgage payment that go toward paying off the loan you borrow. PITI stands for Principal, Interest, Taxes, and Insurance. They’re all important factors to calculate when determining what the cost of your new home will be.
TaxRates.org defines property taxes as,
“A municipal tax levied by counties, cities, or special tax districts on most types of real estate – including homes, businesses, and parcels of land. The amount of property tax owed depends on the appraised fair market value of the property, as determined by the property tax assessor.”
This organization also provides a map showing annual taxes by state as a percentage of median home value.
South Carolina ranks as one of the lowest median property taxes in the country. Dorchester County collects an average of 0.67% of the assessed value for taxes. Berkeley County collects 0.51%. And Charleston County collects 0.5%. As you look at these numbers, keep in mind that the median home prices in these counties vary. Charleston County is $242,100, Dorchester is $171,400 and Berkeley is $149,700.
Depending on where you live, property taxes can have a big impact on your monthly payment. To make sure your estimated taxes will fall within your desired budget. Let’s get together today to determine how the neighborhood or area you choose can make a difference in your overall costs when buying a home. Request a meeting here.