A MUD (municipal utility district) adds its own tax line, which can push your total tax rate well above 2.5%. On a $400K house in Falcon Pointe I worked on last month, the MUD portion alone added about $250 a month to the payment. Ask your lender to quote using the full rate, not the county estimate on the listing.
What should first-time buyers in Pflugerville know about MUD taxes?
A listing says the home is in a MUD. What does that mean for my payment?
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