What is Property Tax?
Property tax is an annual tax local governments charge based on the assessed value of your home, used to fund schools, roads, and services. In California, Proposition 13 generally caps the base rate near 1% of assessed value plus voter-approved additions. It is often paid monthly through an escrow/impound account.
Example: A home assessed at $600,000 carries roughly $6,000+ in annual property tax, which the lender collects monthly and pays on the owner’s behalf.