Understand All The Costs For Your Dream House
Besides the traditional mortgage payment, there are significant costs in buying and maintaining a house.
One Time Entry Costs For A Home Purchase
Loan Points which is a buying down your interest rate, essentially you are paying some of your loan interest up front.
Down Payment is a percentage of the sale price that reduces overall debt owed.
It also helps your lender prove that you deserve loan and assures commitment on your part to repay the loan.
Security Deposits For Utilities like Garbage Pickup, Water, Electicity, Gas, Cable, Phone
Light Repairs/Touchup may be required such as shelf paper, picture frame hooks etc.
Maintenance Equipment like a mower, weedeater, ladder, garden tools etc.
Monthly Ongoing Costs For A Home Purchase
Property Taxes are the most significant expense after your regular Principal and Interest mortgage payment.
Property Insurance is the next most significant expense after your property taxes.
Private Mortgage Insurance is the insurance that you pay if your loan is less than 20% of the appraised value.
Utilities are going to much higher than an apartment due to more space to heat or cool.
How do you decide that you are ready for a house?
Go through the above checklist and make a list of expenses, then make sure you have 6 months of additional savings and a substantial down payment before committing to a house long term. Remember the longer you stay in a house the better chance you have of reaping the tax benefits and personal statisfaction.
 House Rent Versus Buy CheckList Can Use The Mortgage Calculator
House Rent Versus Buy CheckList is a way to decide whether you won't to buy or rent.
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