2006-10-26 02:59:11 · 10 answers · asked by jimmytrack 1 in Politics & Government ➔ Law & Ethics
Yes, there are MANY costs associated with purchasing a house. You may be able to roll all the costs into your mortgage, though, and there are many "first time home-buyer" programs that will help cover the costs. Look around.
2006-10-26 03:08:30 · answer #1 · answered by Milana P 5 · 0⤊ 0⤋
You'd better believe it!! Apart from the price of the house , you have closing costs, loan origination fees, and maybe "points", which the lender may charge. Each point is 1% of the loan. Buyers will usually opt for a home inspection after making an offer to purchase. That's a few hundred bucks.
Also, just figure out the interest you are paying over the life of the loan.
In the end, people pay MORE in interest than the price of the house!!!! Maybe more than 100% of the price of the house. Sickening? You bet, but since when have banks and mortgage brokers been kindhearted?
2006-10-26 03:14:38 · answer #2 · answered by ladsmrt 3 · 0⤊ 0⤋
Yes - they're called "closing costs" and are generally about 10% the cost of the house itself. These are taxes, fees, realtors fees, title company fees, esgrow monies, and the associated costs of actually making the transaction.
If you're smart you'll avoid a funky mortgage (interest only, flexible rate, etc.) save up some hard cash to cover your down payment and closing costs, and get a conventional 30 year loan from a lender. This is the most cost effective, safest way to buy a home.
2006-10-26 03:03:01 · answer #3 · answered by texascrazyhorse 4 · 0⤊ 0⤋
There are no required costs other than the purchase price.
However if you are unable to pay cash (You need a mortgage?)or you wish to insure and guarantee the title (ownership) of the property you are buying or if you wish to transfer the title into your name so that the previous owner is prevented from selling the house to someone else you will have additional costs.
This is an incredibly inappropriate question for this forum you should be speaking to a realtor, lender or real estate attorney not a bunch of anonymous amateurs.
2006-10-26 03:21:03 · answer #4 · answered by Ron H 2 · 0⤊ 0⤋
1. Closing costs for the loan.
2. Down payment
3. Taxes
4. Insurance
5. Things like an inspection and appraisal. (Which could be considered closing costs.)
6. Any repairs you choose to make when you move in (including paint, new appliances, cleaning), but those are optional.
2006-10-26 03:35:43 · answer #5 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
Closing costs usually run about 6% of the cost of the home. You probably want a good faith estimate from your mortgage person which will breakdown all of the costs.
2006-10-26 03:05:14 · answer #6 · answered by Phu 2 · 0⤊ 0⤋
Closing costs, down payment, inspection....
In Canada, land transfer tax - 1.5% of the purchase price.
2006-10-26 03:00:46 · answer #7 · answered by Tammyorr 2 · 0⤊ 0⤋
Yes, taxes, insurance and points buy down. Along with the closing cost, if you cannot get the seller to pay it. 95% of the time the seller will pay closing.
2006-10-26 03:03:06 · answer #8 · answered by bigslick60 3 · 0⤊ 0⤋
There are closing costs, which can be quite pricey ($1,000-$5,000), and of course you have to consider moving costs. Then, there is the electricity deposit, and water deposit. Yikes, I sound discouraging. Oh, and inspection fees (approx $300)
2006-10-26 03:01:03 · answer #9 · answered by smashley 4 · 0⤊ 0⤋
Closing costs
title insurance
Inspection
Filing costs
Sales Tax
There are all sorts of extras
2006-10-26 03:01:05 · answer #10 · answered by Anonymous · 0⤊ 0⤋