Escrow & Title
In a Kentucky closing, property taxes are typically prorated based on:
AThe prior year's tax bill✓ Correct
BThe current year's assessed value
CKREC's published tax table
DThe lender's estimate only
Explanation
Property tax prorations at Kentucky closings are typically calculated based on the most recent year's actual tax bill since the current year's bill may not yet be determined.
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Key Terms to Know
Proration
The division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Math Concepts
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