How To Calculate The Monthly Costs of Owning a Home
As your licensed mortgage associates, we want to ensure you are well prepared for homeownership. This includes the many monthly fees that many homeowners don’t see coming. Some of them, like taxes, may not be billed monthly, so do the calculations to break them down into monthly costs.
The Mortgage Payment
For most home buyers, this is the largest monthly expense. The actual amount of the mortgage payment can vary widely since it is based on a number of variables, such as mortgage term or amortization.
Property Taxes
Property tax can be paid in two ways – remitted directly to the municipality by you, in which case you may be required to periodically show proof of payment to your financial institution; or paid as part of your monthly mortgage payment.
School Taxes
In some municipalities, these taxes are integrated into property taxes. In others, they are collected separately and are payable in a single lump sum, usually due at the end of the current school year.
Utilities
As a homeowner, you’ll be responsible for all utility bills including heating, gas, electricity, water, telephone, and cable.
Maintenance and Upkeep
You will also have to cover the cost of painting, roof repairs, electrical and plumbing, walks and driveway, lawn care, and snow removal. A well-maintained property helps to preserve your home’s market value, enhances the neighborhood, and, depending on the kind of renovations you make could add to the worth of your property.
