Municipal Utility District

One of the various factors you will need to consider that will affect your monthly payment will be the property tax rate. This includes if the house is located in a Municipal Utility District or MUD. In a nutshell, the purpose of the MUD is to provide a developer an alternate way to finance the overall infrastructure of a community and they will pass on the cost to the homeowners via property tax. As a community grows, MUD taxes typically decline, as operating and debt services cost are shared by more homeowners. In some cases, such as when an area is annexed by a surrounding municipality, the MUD is dissolved.

Make sure to consult with your realtor if you are currently looking at a new community to find out what will be included in your property tax