Buying a home in Springfield comes with more than just a mortgage payment. Property taxes and homeowners insurance play a big role in your monthly costs, and understanding them upfront can help you budget smarter. Here's what you need to know.

Property Taxes: A Key Piece of Your Monthly Payment

Property taxes help fund schools, roads, and public services in Springfield. The amount you'll pay depends on:

Your home's assessed value – This is set by the local tax authority, not the purchase price.

Local tax rates – These vary by city and county and can change over time.

💡 For example, if your home is assessed at $300,000 and the local tax rate is 1.5%, your annual property tax would be $4,500—or about $375 per month.

Most homeowners pay property taxes through an escrow account, meaning they're included in your monthly mortgage payment. Others choose to pay them separately—just know that large tax bills can feel overwhelming if you're not budgeting for them.

Are there ways to lower property taxes?

Possibly! Many states and counties offer homestead exemptions or reductions for certain buyers, like veterans or seniors. It's worth checking with your local tax office to see if you qualify.

Homeowners Insurance: More Than Just a Requirement

Lenders require homeowners insurance to protect your home, but beyond that, it's an important safety net. Standard policies typically cover:

• Your home's structure – Protection against fire, storms, or accidents.
• Personal belongings – Furniture, electronics, and valuables.
• Liability coverage – If someone gets hurt on your property.

What affects your insurance costs?

Several factors, including:

Location – Areas prone to severe weather may have higher premiums.

Home details – Older homes or certain roofing materials can impact costs.

Coverage choices – Higher deductibles = lower monthly payments, but more out-of-pocket in a claim.

Ways to Save on Homeowners Insurance:

✅ Bundle home & auto insurance for discounts.
✅ Improve home security with alarms or smart locks.
✅ Shop around—rates vary between providers.

How These Costs Impact Your Home Affordability

• Beyond the Mortgage – Your monthly payment isn't just principal and interest. Property taxes and homeowners insurance are key factors that impact affordability.
• Property Taxes Vary – Rates depend on location, home value, and local tax policies. Some areas have tax exemptions or reductions for certain buyers.
• Homeowners Insurance Matters – Coverage costs depend on factors like home value, location, and policy details. If you're in a flood or high-risk area, you may need additional coverage.
• Escrow Accounts – Many homeowners pay taxes and insurance through an escrow account, bundling these costs into their mortgage payment for easier budgeting.
• Plan for Changes – Property taxes and insurance rates can adjust over time, so it's smart to budget for potential increases.

Buying in Springfield? Let's Talk!

At Diamond Residential Mortgage Corporation (DRMC), we're here to make home financing simple. Whether you're buying your first home or your next, we'll help you understand the full cost of homeownership and find the right loan for your budget.

Call us at (847) 244-9301 or get started today!