How much could I expect to pay TOTAL per month when I purchase a home? I know taxes vary from area to area, but is it fair to assume that taxes and insurance would add about an extra $200 to my monthly payment? Significantly more or less? If, for instance, my mortgage payment was $800, I could expect to pay about $1000 per month total??
We're in the very beginning stages of thinking about purchasing our first home and want to get an idea of how much out of pocket we can expect to be per month. The old renting vs owning thing.
Thanks!!!
2007-02-22 07:29:42 · 8 answers · asked by wifey 2 in Business & Finance ➔ Renting & Real Estate
Naturally,the principle and interest on a fixed mortgage will be the same every month..Taxes and insurances...on the other hand can change..Lets assume your buying a home for 100,000...Its assement is at 100,000..So the tax rate would most likely not change..Your Realtor or lawyer(hire your own lawyer)..Will get this figure or you might be able to as well..Assuming this lets say your taxes our 200 a month(2400/per year)...(this is just making a point)..home owners insurance..again can be different from one insurance company to another..so lets say 50 a month(600/per year)....Then you'll have insurance if you don't pay at least a certain percentage down..I think that's call..pmi insurance..that's not much a month..25....If your in a flood zone you'll need insurance for that..lol...Still wanna buy?....Soo..you'll have taxes,home owners insurance..at the least...plus pmi and flood if necessary...Add that all up and you have just became a real tax paying citizen..Its worth it...enjoy
2007-02-22 08:44:53 · answer #1 · answered by overhereyoupretty 3 · 0⤊ 1⤋
Your first bet is to actually talk to the bank and see exactly what they're willing to lend you in the first place. They will be able to provide you with the approximate payment (depends on how much down) and any other insurance you need to purchase a home. They will also tell you exactly what you need to speed up paperwork when you find that perfect home.. (title search, property assessment, house assessment etc., ( all these cost money and is not included in the payment) .
There is no use in finding a home your in love with only to find out it's not in your price range. Also, a contract between the homeowner and you is usually required and most times a lawyer has to over see this (an additional cost upfront)
If money is not the option (although I think it is), you could look at a home in a general area you'd prefer and ask them (Realtor) what the taxes are and utilities (good to know also). Make sure you are aware that you should insure the home and your contents in case of fire etc. and is usually not included in the payment.
Know exactly what your getting into and ask questions if your not sure of things. Buying a home is a lot of work and costs a lot upfront, make sure your prepared before you go house hunting.
2007-02-22 15:52:58 · answer #2 · answered by trojan 5 · 0⤊ 0⤋
It varies greatly from state to state, so it's impossible to estimate. If you find a home that you like, the realtor (or local tax authority) will be able to quote the annual tax amount, and, with some basic information (square footage, type of construction, etc), an insurance company can give you a quote on the annual homeowner's insurance (and flood insurance, if applicable). The only other expense to watch out for is a homeowner's association fee, which is not applicable to all neighborhoods.
2007-02-22 15:39:48 · answer #3 · answered by Mr. Knowitall 3 · 0⤊ 0⤋
Some property has Home Owner Association dues. It pays for your common area like your community pool or landscape of the common grounds. It Depends on the community it could be up to $250/mo in some area in California. Just a thought when you buy a property. Also, there's extra tax for new developed area too. With all of those put into consideration, I think owning your home is still better than renting.
2007-02-22 15:50:01 · answer #4 · answered by Naryanisan 1 · 0⤊ 0⤋
my house payment is set up that way too, mortgage+insurance+taxes- the insurance and taxes are just as much as the mortgage payment. you are very right about property taxes, mine are double that of the neighboring county so it all depends on where you live. when you go to look at a house or find a listing that you like, you can always ask the realtor what the taxes are on the property, they will tell you and most will print out a history of yearly taxes and utility amounts. good luck
2007-02-22 15:41:44 · answer #5 · answered by dances with cats 7 · 0⤊ 0⤋
That's a question to ask a realtor - they will know the local tax rates and likely insurance costs.
2007-02-22 15:39:10 · answer #6 · answered by Ralfcoder 7 · 0⤊ 0⤋
you need to talk to a mortgage preson not a realtor. You need to see if you have PMI, if you are going to have an escrow, and that are a lot of other things 2.
2007-02-22 15:49:08 · answer #7 · answered by s_uperdave 3 · 0⤊ 0⤋
I need to know what county you are in to give you a tax figure...
Heres a quick rent v. own calculator:
http://rws.mortgage101.com/templateroot/Calculators/BuyVsRent.asp?pvlid=14805
This one is to see what your payment will be:
http://rws.mortgage101.com/templateroot/Calculators/Payment.asp?pvlid=14805
2007-02-22 15:52:44 · answer #8 · answered by sdmike 5 · 0⤊ 0⤋