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Homeownership · Step by step

You own a home: taxes, insurance and how to protect it

What comes after the keys: the escrow account, property tax, insurance, upkeep, what to do if you fall behind and how to look after your title. Step by step, with sources.

With your county, the calculators and the steps use your numbers.

Guides verified against official sources · last verified: November 6, 2026 · 388 official sources

Your number

Property tax and refinancing, at a glance

Two sums every owner does: how much property tax is due each year, and whether a lower rate makes up for the cost of refinancing.

What do you want to calculate
$

Starts at the typical value in the United States: $332,700.

Place: the United States

What you type stays in this browser; it is not sent anywhere.

Estimated tax per year

$3,127

Taxable value × 0.94%.

Per month

$261

What an escrow account would set aside each month.

At that rate, every $100,000 of taxable value pays about $940 a year.

Home value
$332,700
Exemption
$0
Taxable value
$332,700

See the full calculationGuide: homestead exemption

Rates change by district and by year; your bill rules.

How we calculate it: taxable value times the effective rate; for a refinance, the costs over the monthly savings. Starting values: American Community Survey (average 2020–2024) and Freddie Mac Primary Mortgage Market Survey (as of November 5, 2026).

See the full method

Every year, without surprises

What owning costs, year after year

Property tax comes every year and insurance renews. Most homeowners policies do not cover flood damage, says FEMA. See the country’s typical numbers and check your home’s.

Read the flood insurance guide

Typical property tax per year
$3,119
Census ACS · Average 2020–2024
Typical effective property-tax rate
0.94%
Census ACS · Average 2020–2024
of homes in high-risk flood zones have NFIP flood insurance
48%
FEMA · As of August 3, 2026

Step by step

The steps, in order

After the keys, the home keeps asking for attention: escrow, tax, insurance, repairs and, one day, selling or inheriting. The steps below go in that order, and each one brings its guide, its tool and the official source behind the rule.

What comes back every month and every year

  1. Every month

    Understand your payment and your escrow account

    Principal, interest, taxes and insurance: which part pays what, why the payment changes even with a fixed rate and how to read the annual statement. Understanding the breakdown is what lets you spot an error in your payment.

    Key tool: Amortization schedule

    Reads for this step (6)

  2. Every year

    Property tax and exemptions

    How it is calculated in your state, when it is due, which exemptions you can request and what to do if the assessed value looks high. An exemption you do not request is not applied on its own.

    Key tool: Property tax

    Reads for this step (5)

  3. At each renewal

    Home and flood insurance

    What it covers, what it does not, why the lender requires it and when you need separate flood insurance. Without active insurance, the lender can buy you a more expensive policy and add it to your payment.

    Key guide: Home insurance explained: what it covers, how much to buy

    Reads for this step (3)

  4. All year

    Upkeep and repairs

    A simple calendar, a repair fund and how to choose contractors without falling for scams after a storm. A timely repair costs less than damage that grew quietly.

    Key tool: Family budget

    Reads for this step (4)

  5. All year

    Protect your title and your home

    Deed fraud, rushed cash offers and “help” to save your home. How to check your title and who to turn to.

    Key guide: Housing scams: the complete guide to spotting them

    Reads for this step (2)

What happens when it happens

  1. If you fall behind

    If you fall behind on payments

    Talk to your loan servicer and to a HUD-approved counselor as soon as you can. There are options, and deadlines matter.

    Key guide: Can't pay your mortgage? What to do in the first week

    Reads for this step (3)

  2. When it makes sense

    Refinance or get a HELOC?

    When it pays to change loans, what it costs and what risk there is in using your home as collateral. A lower payment is not always a cheaper loan: the costs and the term count.

    Key tool: Should I refinance?

    Reads for this step (7)

  3. Someday

    Selling, inheriting or passing the home to family

    What you keep when you sell, which papers are signed and how to leave the home in the name you choose, with free legal help if you qualify. Deciding it in advance saves paperwork and costs for whoever keeps the home.

    Key tool: How much will I keep when I sell?

    Reads for this step (4)

Common mistakes and scams

Costly mistakes and common scams: what they tell you vs. the reality

Owners lose money to surprises that could be foreseen and to “help” that arrives just when they are behind. Here are the costliest mistakes and scams, with what the official source says beside them.

  • What they tell you Scam

    “Sign the deed over to me and I’ll take care of your debt”

    The trap: signing a power of attorney or a deed to “save” the home

    The reality

    Before signing any paper with someone who promises to save your home, show it to a free legal aid office or a HUD-approved counselor.

    What it means: legal aid

    Source: CFPB, “How to spot and avoid foreclosure relief scams”

  • What they tell you Myth

    “With a fixed rate, your monthly payment never changes”

    The mistake: being surprised when the payment goes up

    The reality

    With a fixed rate, principal and interest do not change; the taxes and insurance paid from the escrow account do. Review the annual escrow statement and ask about anything you do not understand.

    What it means: escrow account

    Source: CFPB, “What is an escrow or impound account?”

  • What they tell you Myth

    “If you stop paying your home insurance, nothing happens”

    The mistake: letting your insurance lapse

    The reality

    The lender requires proof of homeowner’s insurance. If yours is cancelled, tell them and get another policy before they sort it out on their own.

    What it means: homeowners insurance

    Source: CFPB, “What is homeowner's insurance? Why is homeowner's insurance required?”

See the other mistakes (2)

  • What they tell you Myth

    “If you fall behind, better not answer; it will sort itself out”

    The mistake: ignoring the letters when you are behind

    The reality

    The sooner you talk to your loan servicer and to a HUD-approved counselor, the more options there are. Their advice on missed payments is independent and often free.

    Source: CFPB, “Find a Housing Counselor”

  • What they tell you Scam

    “Pay me everything today and I’ll start the repairs tomorrow”

    The trap: paying a contractor up front after a storm

    The reality

    Ask for a license, a written contract and references; pay in stages and never everything up front. Tell your insurer before you repair.

    Source: CFPB, “How do I avoid scams and fraud after a disaster?”

Housing and money guides, with official sources

Essential guides for this path

The most complete guides for people who already own: escrow, taxes, insurance and repairs. Start with the featured one; each guide says which sources we verified and when.

Owning a home 13 minute read

Property tax explained: how it is calculated and paid

  • It is a local tax: assessed value of the home × the rates of the county, city and school district, minus exemptions. Your county sets the bill.
  • With a mortgage you pay it through escrow: the servicer collects it in your monthly payment, pays it for you and reviews the account every year; a shortage is repaid over at least 12 months.
  • Exemptions (such as the primary residence one) and the appeal of the assessed value have deadlines; they are on your state's page with their source.

Read the full guide

See all 29 guides on Owning a home See all 12 guides on Protect yourself from scams

Homeownership

Frequently asked questions

What we are asked most after the purchase, in brief. For the details, the linked guides carry the source.

Why did my payment go up if my rate is fixed?

Because the taxes and insurance paid from your escrow account change every year, and your loan servicer adjusts the payment. Ask for the annual escrow statement and review it.

What it means: escrow account

Can I remove mortgage insurance?

PMI on a conventional loan is cancelled automatically once the balance falls to a certain level of the original value, if payments are current. The loan types guide has the details with its source.

Read the guide: Mortgage loan types: FHA, conventional, VA and USDA

What do I do if I cannot pay this month?

Call your loan servicer before the due date and find a HUD-approved counselor: their help is free or low cost, and they explain the options. Keep everything in writing.

See the free help

How do I know my home is still in my name?

Check the deed at your county’s recorder’s office and ask whether they offer alerts when a change is recorded on your property.

What it means: title insurance
A father feeds his baby seated in a high chair.

See the free help

Free help for your case

If you are behind, a HUD-approved counselor walks you through the options with your loan servicer, free or at low cost. For a dispute with your insurer, your state’s insurance department takes complaints; for deeds and inheritance, free legal aid offices serve those who qualify.

This site explains and links what official sources publish; it does not give individual advice. For your case, these organizations help for free or at low cost:

Would you rather talk to someone?

HUD-approved housing counselors give independent advice, free or at low cost. Find your county and we show you the nearby agencies with the languages they serve, or go straight to HUD’s directory.

HUD’s directory

Five questions, none personal. You get the steps in order, with the guides and calculators that fit you.

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