The servicer pays the bills
Your loan servicer holds an escrow account. Part of each monthly payment goes into it, and the servicer pays the property taxes and the insurance premium when the bills come due.
After closing: the first month
New Providence, Union County
Property taxes and your mortgage: what New Providence, NJ buyers and owners should know
For New Providence buyers and owners: how the property tax bill enters the loan, the choice between an escrow account and paying the bills yourself, and the relief some owners have to apply for. Fidelity Residential is a direct, licensed mortgage lender with a New Jersey office on Route 36 in West Long Branch, in Monmouth County, and we lend across New Jersey.
- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
Where are you?
Pick the closest, or call and talk it through.
Fidelity Residential · NMLS #103098 · Equal Housing Lender
New Providence housing
Taxes in the highest Census band
For 2020 to 2024, the American Community Survey estimates New Providence at about 13,700 residents and about 5,700 homes.
The Census Bureau puts the median real estate taxes paid here in its highest band, $10,000 or more a year. About 1,600 owner-occupied homes, an estimated 40.2 percent, have no mortgage, so their owners pay the tax bill directly. The estimated median value of owner-occupied homes here is about $769,900.
Fidelity Residential is a direct mortgage lender licensed in New Jersey under a Residential Mortgage Lender License. Our office is at 121 NJ-36, Suite 230, West Long Branch, in Monmouth County; we do not have an office in New Providence, and we lend across New Jersey.
Homes and households
- Owner households: an estimated 75.8 percent of occupied homes
- Still paying a mortgage: about 2,400 owner-occupied homes, an estimated 59.8 percent
- A 1950s housing stock: an estimated 32.3 percent of homes were built in that decade
- Aged 65 and over: an estimated 23.2 percent of residents
- Retirement income: an estimated 32.1 percent of households
Source: US Census Bureau, American Community Survey 5-year estimates, 2020 to 2024. Estimates, not counts.
Buying
The tax bill is part of the payment the lender reads
A typical monthly mortgage payment has four parts: principal, interest, taxes and insurance. The taxes and the insurance are part of the housing payment an underwriter weighs against your income, just as the loan itself is.
So two houses at the same price can lead to different price ranges: the one with the larger tax bill leaves less room for the loan.
The figure at the start. On a purchase, the tax figure used to set up the loan is often an estimate, frequently the previous owner’s bill, which may have carried relief you do not have yet. Ask for the current bill early.
The whole cost. Owning costs more than the loan payment: property taxes, insurance, upkeep and repairs all count. Compare that full cost with the full cost of renting, and keep a cushion of savings after closing.
Owning
Escrow, or paying the bills yourself
Most loans collect for taxes and insurance each month. Some let you pay those bills yourself.
Paying them yourself
Some loans let you pay the taxes and insurance yourself. Waiving escrows can carry a charge in the loan’s pricing, so ask to see the loan both ways.
Guide to closingWhy a fixed payment can move
On a fixed-rate loan, principal and interest stay the same for the life of the loan. The escrow part can rise or fall when the tax bill or the premium changes.
Fixed rate mortgages
Relief and records
Relief that has to be applied for
Some property tax relief has to be applied for by a deadline, and missing the window can mean waiting for the next one. Ask the tax office what relief a main home can get, and when to apply.
If your servicer’s yearly escrow analysis shows a shortage, check the tax figure it used against the actual bill before paying; a wrong figure gets the analysis worked out again.
No mortgage? Owners who pay the tax bill directly keep their own records, and a lender asks for the property tax bill whenever you refinance or borrow against the home.
Later in life. A reverse mortgage does not end the tax bill: taxes, insurance and upkeep must still be paid.
Keep these together
- The tax bill: the current one, and the bills you paid
- Insurance: the homeowners declaration page
- Escrow: the yearly escrow analysis from your servicer
- The loan: your latest mortgage statement
- Year end: Form 1098 for your tax preparer
Questions
Questions from New Providence owners
Do you lend in New Providence?
Yes. Fidelity Residential is a dba of PFN Lending Group, Inc. (NMLS #103098), which holds a New Jersey Residential Mortgage Lender License, and we lend across New Jersey. You can check the licence on NMLS Consumer Access (opens in a new tab).
Do you have an office in New Providence?
No. Our office is at 121 NJ-36, Suite 230, West Long Branch, NJ 07764, in Monmouth County, and we lend across New Jersey. Call 732-686-9999 to talk with a licensed loan officer.
Are property taxes part of my mortgage payment?
Usually. On loans with an escrow account, part of each payment goes toward the taxes and insurance, and the lender counts them in the housing payment it weighs against your income.
Can I pay the property taxes myself instead of through escrow?
Some loans allow it. Waiving escrows can carry a charge in the loan’s pricing, so ask your loan officer to show both.
Why did my payment change on a fixed-rate loan?
Principal and interest do not change. The escrow part moves when the tax bill or the insurance premium changes.
Do I still pay property taxes with a reverse mortgage?
Yes. Taxes, insurance and upkeep must still be paid.
Talk with a loan officer near you
Get a quote online, or call us and talk it through with a licensed loan officer.
What happens next
- Tell us about your loan. A few quick questions about the property and the loan you want. No credit check to start and no obligation.
- A licensed loan officer reviews your answers and follows up with you, usually within one business day.
- This is a request for a quote, not a loan application and not a commitment to lend.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.
Reviewed by Robert Shamie, CEO, NMLS #241428 · Last reviewed:
Fidelity Residential (PFN Lending Group, Inc., NMLS #103098) is a direct mortgage lender licensed in 40 states and the District of Columbia, with 26 years in business.