Doing the mortgage numbers: Home buying expenses that you need to prepare for

Posted December 9, 2008 by Bernz

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.

mortgage1) 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.


More On This Topic:

Cool Financial Calculators
Cool Financial Calculators
A-Z real estate vocabulary for home buyers and sellers
A-Z real estate vocabulary for home buyers and sellers
Painless ways to cut expenses and save for retirement
Painless ways to cut expenses and save for retirement
Why you need a mortgage broker and where to find one
Why you need a mortgage broker and where to find one

Leave a Reply

(required)

(will not be published) (required)


« Back to text comment

Disclaimer:

All the articles and content written here on Invesmint.com is for general information only and based solely on the authors personal opinions and discretion. It was not and should not be a substitute for professional advice. Visitors of this site (Invesmint.com) are encouraged to seek appropriate professional advice before acting upon the content or information from this site. Again, the content of this website is not a source for professional advice.

INVESMINT.COM hereby excludes liability for any claims, losses, demands, or damages of any kind whatsoever with regard to any information, content, or services provided at our web site, including but not limited to direct, indirect, incidental, or consequential loss or damages, compensatory damages, loss of profits, or data, or otherwise.