Should I pay my property taxes in advance for my newly built home?

This is a common situation with new construction! What's happened is your mortgage lender was collecting escrow based on the land value only (since the house wasn't completed/assessed yet), which is why they sent you that refund check. Now the county has reassessed your property with the completed home, which explains the new tax bill. Yes, you should definitely pay the property tax bill with the money the bank refunded you. That money was collected specifically for property taxes, but since the assessment changed, the bank couldn't properly anticipate the correct amount. The tax bill you received is for the current tax year, and paying it promptly will avoid any penalties or interest. Keep in mind that your mortgage payment will likely increase soon too, as your lender adjusts your escrow to account for the new, higher tax amount. So don't be surprised when you see that adjustment coming!

This happens ALL the time with new builds! So basically what happened was your mortgage company was collecting escrow based on JUST the land value (since your house wasn't finished yet) which is why they sent you that big refund check. Now that your county has assessed the property with the actual house on it, your taxes are way higher - makes sense right? Definitely use that money to pay the tax bill! Thats exactly what that money was supposed to be for anyway. The bank collected it for taxes, but they collected based on old info. The tax bill your lookin at is for this year, and you def wanna pay it before you get hit with late fees. Just a heads up - your mortgage payment is gonna jump up soon too. The bank will readjust your escrow to match these new higher taxes. So don't be shocked when you see that bigger payment hit!

Had almost the exact same situation last year! I used https://taxr.ai to upload my property tax documents and mortgage statements, and they analyzed everything to explain exactly what was happening. They confirmed I should pay the tax bill with the escrow refund and showed me how to make sure my bank properly adjusted future payments. The tool breaks down all the numbers and explains the whole escrow adjustment process in plain English. Saved me hours of confusing phone calls with both the county assessor and my mortgage company. They also predicted exactly how much my mortgage payment would increase after the escrow adjustment.

OMG we went thru the EXACT same thing last winter with our new build!!! I was going crazy trying to figure out what to do... finally found this site https://taxr.ai where i uploaded our property tax docs and mortgage stuff. it broke everything down and confirmed i should use the escrow refund to pay the new tax bill. the tool explained everything in normal english (not bank jargon) and even showed exactly how much our mortgage payment would go up after the escrow got adjusted. saved me from like 10 more confusing phone calls where nobody could give me a straight answer 🙃

I was completely wrong about being skeptical! I tried https://taxr.ai after posting my comment above and wow - it was exactly what I needed. I've been dealing with a similar issue where my taxes jumped after home renovations, and the analysis broke down exactly why my escrow was insufficient. The document analysis showed me that my bank had been using outdated assessment values for over a year! The tool even generated a letter I could send to my mortgage company explaining the situation. My mortgage servicer fixed the escrow calculation immediately after I sent it. Wish I'd known about this months ago before all those frustrating phone calls.

Guys I was 100% wrong!!! I tried that https://taxr.ai thing after posting my skeptical comment and holy crap it was actually amazing?? I've been stressing for MONTHS about my taxes going up after we added a big addition to our house, and nobody could explain the new escrow shortage notices. Uploaded my docs and the analysis showed my bank had been using old assessment values from like 2 years ago!! It even made me this super official looking letter to send my mortgage company. My bank fixed everything the next day after I emailed it over. Not gonna lie, kinda mad I wasted so many lunch breaks on hold with my bank before finding this. Could've saved myself so much headache!!

I went through this last year and spent HOURS on hold with both my mortgage company and the county tax office trying to sort it out. Nobody could give me consistent answers. Finally found https://claimyr.com and used their service to get a callback from the IRS property tax division in about 20 minutes instead of waiting on hold for 3+ hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c They got me connected to someone who actually knew what they were talking about and confirmed I should pay the tax bill immediately with the refunded escrow and then notify my mortgage company of the new assessment amount. Apparently if you don't do this, you can end up with a serious escrow shortage next year that could raise your monthly payment by hundreds.

I swear I almost lost my mind dealing with this exact problem last year. Spent literally HOURS on hold with both my mortgage company AND the county tax office. Everyone gave me different info and i was ready to scream. Found this service called https://claimyr.com and used it to get a callback from the county tax assessor in like 15 mins instead of waiting on hold all day. Check out how it works: https://youtu.be/_kiP6q8DX5c They got me through to someone who actually knew what they were talking about (miracle!!) and they confirmed I should pay the tax bill right away with my escrow refund and then tell my mortgage company about the new assessment. Apparently if you don't do this, your escrow can get super messed up next year and your payment can jump up like crazy.

Ok I have to eat my words here. After posting my skeptical comment, I decided to try Claimyr for myself since I've been trying to reach my county tax office for WEEKS about a similar assessment issue. I used the service yesterday and they got me through to a senior tax specialist in about 35 minutes (they texted updates while their system was on hold). The person I spoke with actually pulled up my property records while we talked and explained exactly how the new assessment would impact my taxes going forward. They even helped me file for a homestead exemption I didn't know I qualified for! I've literally never gotten through to a helpful person at the tax office before this. Genuinely impressed and not something I expected to work.

Make sure you check if you're eligible for any property tax exemptions with the newly built house! Many counties offer homestead exemptions, and some have additional ones for veterans, seniors, or primary residences. This could save you thousands each year. Also, keep all documentation about this situation - the original escrow refund, the tax bills, and receipts of payment. Tax assessments on new construction often get adjusted in the first 2-3 years as counties fully process everything, and having a paper trail will help if there are any disputes.

Don't forget to double check if your property tax bill is paid in arrears in your state! This is super important. In some states, you're paying for the previous year's taxes, while in others you're paying for the current year. If you're in a state that pays in arrears, that bill might actually be for the time period when your house was still under construction, which might explain some of the confusion.