How property taxes affect your monthly payment

Property taxes are baked into your monthly mortgage payment through escrow, and in New Jersey they can add $1,000–$1,500 per month to what you pay — even on a modest purchase. This episode focuses on how the escrow calculation works, why your payment can jump unexpectedly after a tax reassessment, and how to read the property tax history before you make an offer.

Kathleen walks through a real payment breakdown for a $650,000 Bergen County home: principal and interest at current rates, PMI if applicable, homeowner's insurance estimate, and the tax escrow — so you can see exactly where the money goes each month and how to stress-test the budget if taxes rise.

Understanding escrow now prevents the shock of an "escrow shortage" letter in Year 2. This episode gives you the tools to anticipate that adjustment before you're committed.