Buying a house can be pretty expensive, so it is necessary to consider both upfront and other costs associated with purchasing a new home. You first should consider the down payment and the closing costs. Ongoing homeowner expenses also apply. These include mortgage pay,ents, property taxes, homeowners insurance, mortgage insurance, and extra money set aside for repairs and utility costs. It is also necessary to create an emergency fund just in case an emergency occurs.
- Closing costs, which include home inspection, transfer tax, and other charges, are usually between 2% and 5% of the price of the house.
- Mortgage payments are the largest ongoing expense, so it helps to compare mortgage lenders to find the best rate.
- Other ongoing costs include property taxes, insurance, utilities and HOA or co-op fees (if applicable).
“Down payments can be a bit of a compromise, balancing what you can reasonably save over a period of time with your desire to buy a home sooner rather than later. If you need a boost in the down payment department, explore local and state assistance programs.”
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