---

When you first embark on your search for your first home, having a realistic expectation of how much you’re going to have to pay is going to make home hunting – and ownership – a lot easier. Many people look for a home based on the amount of mortgage they will have to pay and while a mortgage is certainly a big part of your monthly home payment, it’s by no means the only expense associated with owning your home.

The costs of actually buying a home can run into the thousands. There’s the home inspection, the lawyer’s fees, transfer taxes, moving expenses and more. This can really hit you where it hurts if you’re unprepared. Do your research and make sure that you have a sum set aside for closing costs.

In addition to your mortgage payment, there are the taxes that the city levies to keep its infrastructure running. The amount of property tax that you pay depends on the municipality you live in. It is usually calculated as a percentage of your assessed home value. While they can be below 1% of your home’s assessed value in some areas, property taxes can exceed 5% in others, which can make your monthly payments balloon.

If you don’t have the 20% down for a traditional mortgage, you will probably have to pay mortgage insurance. This is a fee levied by the lender to cover the insurance it buys to cover the loan if you default. You can generally cancel this after you reach around 20% in equity, but reaching this point will take some time. Other options, like taking a second mortgage out to avoid this can be just as or more expensive than the mortgage insurance.

Homeowners insurance really depends on the value of your home and belongings, but you might be paying anywhere from $50 to hundreds of dollars a month to ensure that damage, vandalism, burglary, etc. can be repaired and items replaced. So that is something that you might need to calculate paying.

A homeowner cannot run to the landlord if their sink is plugged up or their toilet overflows. All the costs of repairs and maintenance fall to you now. It’s a smart idea to save a small percentage of your income to ensure that you have the cash when the toilet threatens to fall through the floor. Saving 5-10% each month of your net pay will set you up with a decent fund – unless, of course, an overlooked problem manifests itself right after you buy.

While home ownership can be rewarding and financially smart, you need to be aware of the real costs. By calculating the costs of buying your own home and maintaining it, you will be much better prepared for owning your property and better able to enjoy it.

Related Articles on Real Estate

1. How to Care for Concrete Countertops
   
2. Buying a Home for Your Home Office
   
3. Commercial property companies hit by fears of negative equity
   
4. How it Came to be Known as Rocky Point
   
5. Mexico Beachfront Real Estate Investment
   
6. Got Plane? Take it to Rocky Point
   
7. An Introduction to Riviera Maya
   
8. Aquatic Wildlife in Puerto Penasco, Mexico
   
9. Beach Estate for sale in Greece
   
10. Greece Property
    
11. Home loan time in India
    
12. Benefits Of Apartments For Rent Dallas
    
13. Real Estate Investments – The J. Hartman Company 10 Commandments
    
14. Do You Want To Be The Borrower Or The Banker?
    
15. Trends In Playa Del Carmen Real Estate
    
16. Flat Fee Realtor - Listforsaleinmls
    
17. Flat Fee Mls - List In Mls
    
18. Advantages To Condo Living In Puerto Vallarta, Mexico
    
19. Mortgage Ireland - Types Of Mortgage Loans
    
20. Best Apartments In Dallas
    

Latest Articles on Real Estate

1. Best Apartments In Dallas
   Dallas is the third largest city of Texas and is known as a metropolitan city. Dallas is very famous for its modern and exclusive apartments. And if you live outside Dallas then Dallas apartments for rent is the best option for the students who want to pursue their education in Dallas. Dallas offer apartment in its various areas such as Addison, Carrollton, Frisco, Irving and in many other parts....
2. Mortgage Ireland - Types Of Mortgage Loans
   According to the Bank of Ireland, there are many different homeowner mortgage packages available. These include: a First Time Buyer’s Package, a Trade Up Mortgage, a Switcher Package, a Breakthrough Mortgage, an Equity Release, an Investment Property Package, and a Lifeloan....
3. Advantages To Condo Living In Puerto Vallarta, Mexico
   Mexico real estate sector has evolved in last few years tremendously. The property sector has strived to cater to needs of discerning international investors who expect and demand word class facilities and innovations. One such trend has been condo living in Mexico. Condo concept is very popular all over the world and every year people are increasingly adopting this option....
4. Flat Fee Mls - List In Mls
   Flat Fee MLS this means that you pay one small amount front and your property is List on MLS until it sells or until you end to verify it off the listings. If you sell your property on your own, you acquire the advantages of the List in MLS network by doing a Flat Fee MLS listing. Agents and buyers grill this database to find exactly the category of property that they are looking for....
5. Flat Fee Realtor - Listforsaleinmls
   With Flat Fee Realtor you take advantage of the opportunity to get the most for your money, whereas with typical real estate listing agents, you must go by their rules and regulations and turning up with paying high sales commission on closing the sales....
6. Trends In Playa Del Carmen Real Estate
   Playa del Carmen real estate has for many years been a favorite with International expats and tourists. A recent study showed that about 40% of the Riviera Maya real estate sold is being lapped up by foreigners. Of these, American and Canadian citizens constitute.....
7. Do You Want To Be The Borrower Or The Banker?
   The J. Hartman Company is a good resource for investing tips and financial information. According to Jason Hartman, founder of Platinum Properties Investor Network, the borrower has the most advantage during times of inflation. Here is an example of purchasing power and the decreasing value of the dollar over time:...
8. Real Estate Investments – The J. Hartman Company 10 Commandments
   Real Estate Investments should be part of everyone’s investment portfolio. Sure, like any investments, there is risk involved; however, the risk is greatly minimized by those who are properly prepared to make wise real estate investmentsJason’s Ten Commandments of Successful Investing™...
9. Benefits Of Apartments For Rent Dallas
   If there are any apartments in Dallas which offer comfortable and classy living, then they are Dallas apartments.Apartments for rent Dallas is the best option for people who can not afford to invest in real estate. Renting allows them to enjoy the amenities and culture without investing huge amount for staying in Dallas apartments....
10. Calculating The Real Costs Of Home Ownership
    Homeowners insurance really depends on the value of your home and belongings, but you might be paying anywhere from $50 to hundreds of dollars a month to ensure that damage, vandalism, burglary, etc. can be repaired and items replaced. So that is something that you might need to calculate paying....

Related topics in Business and Finance

Submit Articles © 2009 KeepArticles.com, All Rights Reserved.