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[tripp]

If I buy a house in OC, do I have to pay property taxes right away? How much? Let's say if I purchase a house for $450,000 today, is the taxes included in the price or do I have to pay taxes the same day in a separate bill? What is the tax rate if any?

[chay]

If I buy a house in OC, do I have to pay property taxes right away? How much? Let's say if I purchase a house for $450,000 today, is the taxes included in the price or do I have to pay taxes the same day in a separate bill? What is the tax rate if any?

At the close of escrow, there will be a closing statement which will reflect the total amount of money going into the transaction and the total amount going out. If you're financing with a typical loan, then you'll be making a 10-20% down payment and using the loan to cover the balance. The lender will usually require that there be an impound account for property taxes and homeowners insurance. Escrow will require that in addition to your down payment, you'll need to bring in a few month's worth of property taxes (how much depends on the time of year), plus enough to cover the homeowners insurance policy. Then, in addition to the amount you remit each month with your loan payment to cover the loan, you'll have to include an amount that goes toward costs to cover taxes and insurance. The tax rate is typically about 1.1% of the purchase price, but this isn't allowed to be increased by more than 2% per year. For example, if your annual property taxes are $4,950 ($450,000 x 1.1%) and your homeowners insurance is $720, then your loan payment will include another $473 ($4,950/12 + $720/12) on top of your amortized principal and interest payment. Hope that helps.