Question:
what do you pay monthly when owning a home?
HugANurse
2010-08-10 22:16:28 UTC
My husband and i are looking into purchasing a home. i want to know what comes with that. i know the basics, like mortgage payment and electric/gas/water... but aside from that what other bills will i have to pay monthly. and the mortgage?? how does that work? what fees are involved that will make my payment rise? also, what things will i need to shell out cash for during the process of buying a home? i have tried to research online, but nothing i have found is very helpful...
Five answers:
TellyB
2010-08-10 23:16:15 UTC
Moving expenses, storage fees, if needed

Mortgage - the mortgage company will usually combine your taxes, and insurance into the monthly mortgage and establish an escrow account to make the tax and insurance payments from your escrow accounts.

Property Taxes, which go up nearly every year

Insurance on property - which is increased nearly every year

School Taxes - which go up nearly every year

PMI (mortgage insurance premium) additional cost if you are usually putting down less than 20% downpayment.

Yard work - $50-100 month if you do it yourself, more if you have alot of lawn care or need to hire someone

House Maintenance - - average 1 % of the value of your home every year in maintenance.

Utilities: Electric, Water, Gas, Oil, Sewer fees, Garbage/Trash removal, Cable, Phone - these fees usually will go up and depending where you live some months might be double other months utilities costs

if you get a condo, you will have condo fees, and condo assessment fees when there are larger upgrade maintenance projects.

Some cities require a certificate of occupancy and a city inspector to certify your property, Some require flood insurance coverage if your property is in a possible flood zone.

When qualifying for the mortgage any average monthly payments on car loans or credit cards will be taken into account for how much house you can afford. You can get pre-qualified for a mortgage which will help speed the process and make it easier to negotiate when you make an offer on a property. When getting pre-qualified or getting your loan, the mortgage company should provide a mortgage disclosure document on what costs to expect - you may need a bit more than this but it should usually be pretty close to actual.

Costs to buy a home vary by the type of mortgage and your location, but typically you will pay a real estate transfer tax, title fees to make sure there are no liens on the property, portion of the realestate fees, down payment, a mortgage loan fee for processing costs, fees for any legal property document copying costs, inspection costs that you do in advance to identify any issues, appraisal fee that the mortgage company charges to ensure the property's worth, closing fees and possible % loan points from the mortgage company.



The realtor will usually need $500 to $1000 as good faith when you make the offer to purchase, which will go toward the closing costs and down payment, and then you need to provide the down payment at the closing when you transfer the property, and many of the other costs you can have rolled into your loan. .



\there are tons of websites with info and books at the library available. The best thing to do to get educated is to start going to some open houses in your area and talk to the realtors at the open house about properties available and what are typical costs in your area. Alot of times if any repairs or inspections are needed, the realtor knows alot of people and can provide good referrals for handymen, appraisals, home inspection, title companies.
truthteller
2010-08-10 23:04:58 UTC
Basically its like this

buying a home you pay mortgage, if insurance is included in payment and holder carries then that affects the payment if not already figured in. Plus you have to see about flood insurance, not all companies include that in your policies that's separate. If a mobile home in a community lot rent.

Mobile home or not you have to find out if water, sewer and refuse are included in the payments. If not then that comes out of pocket quarterly and that varies. Find out if your taxes are payed by the mortgage company, the yes or no effect the payments either way that's more money.

Find out if any of your deposit helps with closing costs. This almost always involves, tax on the sales price, filing fees, attorney fees, warranty deed fees etc. etc. It can vary from area to area. Some areas have 911 tax fees like the property tax fees that you pay to the county, others have that included in the phone bill. If you haven't had a deed search done to look for liens,back taxes etc, this is often an optional but worth it expense when buying a home. Quit claim deeds often cause you to assume any money owed involving the property.



To recap, sometimes included or at option of the buyer these can effect the amount of mortgage payments.

property taxes, water,sewer, refuge quarterly taxes, insurances if included it can often be added as a whole sum then prorated for each month included with mortgage payments, if ot included then this is an added bill just the same your expense.



Also ask if your payments are at a fixed rate, if your mortgage can be sold to another party and if there are balloon payments.

The rate of course effects payments, selling of your mortgage not only effects the payments but often due dates as well!! And balloon payments can increase over time. What you plan on paying now may no be what you pay in a year or even in five. Taking into consideration of the taxes and insurance rates as they increase if they are included in your mortgage payments.

Closing costs and if any lot rent.
Hjean
2010-08-10 22:44:57 UTC
Property taxes and homeowners insurance prorated 1/12 per month into escrow. Seek out fixed rate loans, to avoid a rise in monthly payments.



Closing costs explained...How To Buy A House...http://michaelbluejay.com/house/closingcosts.html



15 vs. 30-year mortgages



When you buy a home you get a mortgage loan that's paid back over 15 or 30 years. Thirty-year loans are popular because:



1. The monthly payments are lower than with 15-year loans.

2. You can qualify for a bigger loan (i.e., a more expensive house) than with a 15-year loan.

3. Sometimes that's all you can get. (You might not qualify for a 15-year loan.)



The downsides of 30-year loans compared to 15-year loans are that you have to make monthly payments for an extra 15 years, and you'll pay a lot more total interest over the life of the loan.
Junior1544
2010-08-10 22:45:59 UTC
The problem with finding this information online is that it is very different from location to location...



Even saying if you're going to be paying property tax's will be different for different reasons...



Some Home Loans require that you pay the tax's monthly as part of the home loan, there is also assosiation fee's if the home is part of an assosiation...



The best advice I can give you would be to find a good Realtor from a good company and you'll be able to get all the answers from them. They will also help you with finding a good home that's within your budget.



Good luck!
?
2016-04-13 11:08:02 UTC
The homes are not being rented..they are for sale. Banks want the money from a sale.


This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
Loading...