Doing the mortgage numbers: Home buying expenses that you need to prepare for
Thinking of buying a home? Prices are very affordable. The catch is that you must have near perfect credit. If your credit is no then seize the opportunity. Just be ready to pay for costs other than your monthly mortgage. Here’s a quick run down on the out of pocket expenses that you’ll need to cover.
1) Add a40% to your mortgage to cover property taxes, home owners insurance and maintenance. Tip: If you pay less than 20% down you can save money by having private mortgage insurance rolled into your mortgage.
2) Expect to pay 2 to 3 percent in closing fees. You can pay these in cash or fold these costs into your mortgage.
3) Your home purchase is contingent on the home passing inspection. Account for these costs, too.
4) Will you need the services of a mortgage broker? If so, this is an added expense. Find out how much it could cost you and if you should make the investment here.
5. Use a mortgage calculator to figure your monthly payments. Click here for a mortgage calculator and other cool financial calculators that will help you meet your financial goals, track expenses, budget carefully.
6. Other out of pocket expenses might include: Moving and storage costs, truck rental, fuel, service deposits for phone, electricity, trash pick up, decorations and home furnishings.
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Tags: buying a home, property taxes
This entry was posted on Tuesday, December 9, 2008 at 8:29 am and is filed under Estate Planning. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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