Considering the opportunity to buy a house, is to assess all property properly budget the costs they face. Most people only focus on costs, and shortly after, when they buy, they understand that the true cost of ownership is often 20% to 30% more than their expectations.
May 7 cost of ownership of the house:
1. Mortgage Payment
2. Property taxes
3. Home Insurance
4. Private mortgage insurance
5. Special Edition, taxes
6. Housing association dues or fees
7. Maintenance and replacement reserves
The mortgage payment is the first and most obvious of payment, because it is the greatest. Property taxes, which is the length of the source of local tax revenues. The property can be transferred to State authority, and from May to about one cup, which is a tax. Home insurance is almost always required by the lender to ensure the family debt. If the purchase price mortgage (the first lien position) is greater than 80% of the value of the house, the lender requires the borrower to take out insurance to protect the lender in case of loss. Some areas have a taxing district to increase the tax burden exceeds the normal tax. Many states have provisions that allow new taxes on property cases. Many of the modern planned community housing is formed by the owners to maintain private institutions, which had exclusive access to residents. These Hoas bill, the owner of each month to provide these services. We often forget the cost of ownership is the cost of routine immunization programs, maintenance and financing of major repairs reserve.
Most people only focus on the mortgage payments as their cost of ownership. This fee mortgage before blithely assuming that the income tax savings of deducting home mortgage interest to the other costs of ownership, or even reduce the monthly cost below the amount of their mortgage payments. These people are wrong. Even after the tax cuts, the cost of ownership is higher than the monthly fee is 20% -30%.
Tags: price