Congratulations! You’ve taken the exciting first step towards achieving the American dream of homeownership in Bucks County, Pennsylvania. As you navigate the process, one term you’ll likely encounter is local property taxes. But what exactly are they, and how do they impact you as a first-time homebuyer? This blog post, courtesy of Orchard Hill Mortgage Company, will equip you with the knowledge to understand and factor in local property taxes when making your homeownership dream a reality.

What are Local Property Taxes?

Local property taxes are levied by your municipality to fund essential public services like schools, roads, and emergency response. These taxes are calculated by multiplying the mill rate (a tax rate expressed in mills, where one mill equals $1 per $1,000 of assessed value) by the assessed value of your property. The assessed value represents the estimated market value of your home as determined by the local government.

Why Should First-Time Homebuyers Care?

Local property taxes are an ongoing expense of homeownership, and they can vary significantly depending on the location within Bucks County. Factoring in this cost is crucial for determining your true monthly housing payment and ensuring you stay within your budget.

Key Factors to Consider:

Mill Rate: Research the mill rate for the specific municipality where you’re considering buying. This information is usually available on the county or municipal website.
Property Assessed Value: While you won’t have exact control over the assessed value, understanding how it’s determined can help you manage expectations. You can typically find this information through your realtor or by contacting the county assessment office.
Homestead Exemption: Many Pennsylvania municipalities offer a homestead exemption, which reduces the assessed value of your primary residence, thereby lowering your property taxes. Be sure to inquire about this benefit and how to apply for it.
How Orchard Hill Mortgage Can Help

At Orchard Hill Mortgage, we understand that navigating the homebuying process can be overwhelming. Our experienced mortgage professionals are here to guide you through every step, including factoring in property taxes. We’ll work with you to find the best mortgage solution that fits your budget and long-term financial goals.

Ready to Take the Next Step?

Contact Orchard Hill Mortgage today for a free consultation. Let’s turn your dream of homeownership in Bucks County into a reality!