Guest Post | When it comes to figuring out whether you should get a property tax loan, there are many factors that you need to consider. It’s often easy to be fooled by how a property tax lender works due to its similarity to some of the other loans. In this article, we look at the different circumstances when you should not get a property tax loan.
Home Owner Is Over 65
If you’re over 65 and still living in your home, it’s probably not a good idea to take out a property tax loan. This is because if you pass away while the loan is still outstanding, your heirs will be responsible for paying off the loan. This can put a huge financial strain on them right when they need to be focusing on getting their own lives back together after your passing.
Home Owner Is Disabled
If you are disabled and have trouble paying your taxes, you may be eligible for certain tax relief programs. It would be better to apply for those programs before getting a property tax loan from your bank or credit union.
Tax Amount Due Is Less Than $3,500
If you’re looking to get a property tax loan for less than $3,500, you may be better off getting a personal loan instead. Property tax loans are available for up to $50,000 and have higher interest rates than personal loans.
You Are Not Able To Afford The Minumum Loan Payments
In addition to being more expensive than personal loans, property tax loans also have minimum monthly payments that must be made each month. If you aren’t able to make these payments on time every month, your loan could go into default and put your credit score at risk.
You Have Access To Low-Cost Financing
If you have access to low-cost financing, it is usually best to use that instead of a property tax loan. Low-cost financing can be obtained from a bank, credit union, or another mortgage lender. The interest rates are usually lower than those offered by property tax loan companies.
Conclusion
Property tax loans can be extremely useful, however, these loans require extreme caution to avoid problems that can plague homeowners over the long term. In the end, you need to think about your own personal financial situation when considering whether a property tax loan is right for you.
Author Bio-
Monica Davis, Operations Manager for Home Savers Community Group. Specializing in assisting property owners with saving their home with a property tax loan.
Leave a Reply