Why a Property Tax Loan with No Payments for a Year May Be a Bad Idea
For many Texas homeowners, being delinquent on Texas property taxes can be an overwhelming and stressful situation and can often lead to impulsive decision-making. If you are in a hurry to pay off your delinquent property taxes and decide to use a licensed lender, you may be tempted to choose the first property tax lender that offers you a loan. This offer might be packaged as a special deal, such as a property tax loan with no payments due for a year. While this may sound like a good idea, it’s important to understand whether these deals are best for your situation in the long run or if it’s just a tactic for a property tax lender to close on loans.
How to Determine if a Tax Lender’s Offer is Right for You
If a property tax lender’s offer sounds too good to be true, take a moment to research and make sure you’re getting the full picture. Some property tax lenders use tactics like special deals offering no payments for 12 months, which may seem to benefit the homeowner but, in the long run, could be costing them more than they thought as interest continues to accrue and does not offer a solution to resolving the amount owed on their property. Let’s break down why property tax loans with no payments for a year may not be for you.
For starters, if you are waiting an entire year to start paying off your loan, you might not be properly budgeting your finances like you would if you were paying off your loan immediately, which could lead to additional financial stress. On top of that, you are still required to pay an entire year’s worth of interest that will continue to add up until you start making your payments. Then when it comes time to pay off your property taxes for the following year, you are hit with the start of your old Texas property tax loan payments on top of your regular bill. This can put you in an even more overwhelming financial situation than you started with.
How to Choose a Property Tax Lender
Not all property tax companies are the same, which is why it’s important to do your own research to make sure that you’re going with the best one for your individual situation. Here are a few things you need to consider.
When choosing the right lender, you will want to make sure the lender and loan officers are properly licensed for selling property tax loans. You can also look for a company’s ranking on Better Business Bureau, a website dedicated to helping the public find businesses you can trust. It’s also helpful to read reviews on sites like Google to determine reputability. For more help with choosing the right lender, read our blog “What to Look for in a Property Tax Lender”.
We Can Help You
Johnson & Starr provides Texas property owners with fair, flexible, and easy-to-understand loans to ease the burden of past-due property taxes. Our goal is to help you pay off your loan in the way that works best for you.
Whether you’re searching for a reliable property tax lender or simply have questions about the process, we’re here to help. Let us guide you through your options, explain how interest works, and show you why starting repayment sooner can make a real difference, contact us today.