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Homestead Exemption

October 1st, 2009 at 03:20 pm

Here is where I show my ignorance.

I have heard about this "homestead tax exemption" but never really knew what it was. People would talk about getting it when I lived (rented) in Florida and I never really understood it. Here in Savannah, People have mentioned they dont know what current property taxes are now because of the homestead exemption.

I just kind of assumed it was something that was offered a long time ago and did not effect me.

Then I got a bill in the mail from my mortgage company. They have been under charging me for my taxes. They plan to increase my payment by $31.00 a month!

That directly eats into my $100 a month additional payment to the principal!

I got angry and motivated. I pulled out a "tax assement" that had been sent to my house a few months ago that listed alot of values that did not make sense to me because they were valueing my house at about 1/2 of what I paid (so I was hiding the paper in shame), and told BB to march his way over to the courthouse, mortgage company or somewhere and FIX THIS while I was at work the next day.

BB did. I am still not sure what he did, but he locked in our taxes using this homestead exemption so they can never be raised. ?? I think. He was told it was locked it in at $50,000 below the stated value of the house. ?? So we essentially locked in paying taxes on a $50,000 property? That does not really make sense to me.But BB is saying its true. But BB has been plenty wrong before.

So I am not getting my hopes up- but am faxing over the documents to the loan company today and I hope they return my payment back to it's original number. I'll keep you updated.

8 Responses to “Homestead Exemption”

  1. creditcardfree Says:
    1254411616

    Good luck. We have some sort of homestead exemption, but it doesn't lock in our taxes. I think it saves us about $100/year. I don't really get it either.

    Can you look online for more information?

  2. monkeymama Says:
    1254411708

    I have no advice - that stuff varies so much by state.

    Just as a warning - California homestead is automatic. For the most part - if you only have one residence. I get all sorts of solicitations to pay for "homestead" when we bought our home. They make it look like an official bill, like you owe it. & it's not something that makes sense for like 90% of homeowners here.

    Going to the courthouse and doing it yourself sounds good!

    Good Luck!

  3. frugaltexan Says:
    1254415870

    Hope it works out to be true!

  4. Ima saver Says:
    1254415937

    I live in Georgia and in my area we do have a homestead exemption. It does NOT keep your taxes from being raised or lowered, it just takes a few thousand dollars off the value of your house. In fla, when I lived there, the exemption was $25,000 (25 years ago) but where I live now, I think the exemption is only $2000. It saves a few dollars in taxes each year.

  5. M E 2 Says:
    1254417322



    Also, if you have your taxes rolled into your mortgage payment, your payment WILL go up every year, regardless of your homestead exemption.

    To the best of my knowledge whomever holds your mortgage (and pays your taxes) requires a cushion in what they call an escrow account.

    That is why when I refied, I INSISTED that the taxes not be included in my mortgage. The city I live in could care less if I do/don't have a cushion .... they want their money. Period.

  6. Ima saver Says:
    1254424867

    No, you don't have to apply each year. You keep the exemption until you sell the house.

  7. LuxLiving Says:
    1254427605

    Every county varies. I'd just look online and see if you have to reapply each year, because, who knows - in your area, you might.

  8. monkeymama Says:
    1254436731

    When I first read this I thought you meant claiming homestead (to protect home in bankruptcy, etc.). Definitely something else to look into. That is what I referred to when I said it was generally automatic in my state.

    Here it's called a "homeowner property tax exemption," I think. It is also rather automatic in the state of California. We owned 2 homes in California for a few months, and got a nasty note that we couldn't claim 2 exemptions. I hadn't realized we had! The exemption here is $70 per year. (7000 exemption x 1% tax rate). Considering the value of most real estate here, it doesn't amount to a hill of beans.

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