You saved all your money for a down payment on a house and calculated the costs of the mortgage but wait just a minute...owning a home also comes with several hidden costs. Those costs can add up. So before you buy your home, here are additional home-related expenses you'll want to include in your budgeting:
Real Estate Taxes - Often your real estate taxes are included in your monthly mortgage payment but in some instances you may pay them directly. The amount of taxes you pay varies depending on the value of your home's and the tax rate in your community.
Private Mortgage Insurance - Your monthly mortgage payment may also include PMI (private mortgage insurance). Lenders typically charge a PMI if your loan exceeds 80 percent of the sales price.
Homeowners Insurance - Most banks require that you hold homeowners insurance. Homeowner's insurance protects from damage to the home from things like fire, theft or weather. Just because you have insurance doesn't mean there are no costs to you remember to set aside your deductible.
While owning a home does have hidden costs the gain of homeownership is always more than the cost. Contact your Coldwell Banker Upton-Massamont Agent today for a detailed look at homeownership.