I'm looking to buy a home. I rent now... How much more money will I spend per year with a morgage?

Question

Lets just say the mortgage and my appartment cost the same per month... Give me a numerical figure for me to look at. With everything included....Worth 5 points to the best answer!

Answer 1

Come on now Marty, you have to tell us more....what is the cost of a house your are looking at? Are you paying $400 in rent or more like $4000 a month. What's your income level, and your other bills.

Answer 2

2

Answer 3

Your question is kind of confusing to say the least. You say to assume that the mortgage and your apartment cost the same per month, then ask how much more you'd spend per year - well, if they cost the same per month, then they cost the same per year.

If you're saying to assume that the principal and interest payment is the same as your rent, then at a minimum you'd also have real estate taxes and insurance to pay. This can amount to two or three hundred dollars a month on a reasonably average house, and can be a lot more depending on the value of the house and its location.

Then of course, any repairs are on your nickel when you own the house, there's no landlord to call and have fix the problem.

Answer 4

Rent $1000 Mortgage $1000
Gas 30/50
Elect 40/100
Water 0/100
Maint. 0/100
Trash 0/30
Mowing 0/75

Austin, Texas

There are variable depending on size of properties, gas rate, taxation and the home's upkeep

Answer 5

That is difficult to answer without knowing you or your lifestyle. I would first start with a monthly register of all of your expenses, gas, food, entertainment, insurance, etc. Identify areas that are discretionary spending. Think about the kind of house you are interested in. Will you need to buy new or more furniture, or lawn care equipment? Once you have a concrete idea of what you want for a house and the items you will need have conversation with a friend that recently moved from an apartment to a house to see if you have similar expectations. I would say I typically spend 1% to 2% of the cost of the house to "make it mine" when I move in.

Answer 6

You should actually save money if your total mortgage payment includes taxes & insurance. You can take mortgage interest off your taxes. If it doesn't include taxes & interest then no one can give you a numerical figure, those will vary according to location and value of the home.

Of course you are responsible for all your own home repairs too.

Answer 7

that depends on how much you and/or other members of your household use the following:

1) water
2) gas/electric
3) homeowners association fee (if applicable)
4) property taxes
5) homeowners insurance coverage
6) pmi (if you less than 20% down)
7) trash collection (if it isn't picked up by your town)

but whatever you decide, remember that interest on a mortgage is tax deductible whereas rent isn't. what does that mean, a bigger refund at the end of the year (depending on your tax situation). and real estate appreciates in value over time.

Answer 8

Maybe nothing; things differ radically depending on area. You will need to purchase fire insurance, and pay property taxes. For insurance, talk to your agent (and do shop around -- I cut my bill in half), and most listing data includes property tax data. (Which may increase as a result of your purchase.) Also, allow some money for improvements; one month's mortgage payment spread over the next year will take care of the essentials.

Answer 9

Ok, when I had a one bedroom apt. I was spending 475 a month (tiny apt. by the way) plus utilities. I had renter's insurance which was very cheap. Then I bought a 1500 sq. ft house with yard and garage and my mortgage is 750 and home insurance is around 600 a year.
Hope that helps, not sure exactly what you were asking.

Answer 10

Rent To Own Home : http://RentToOwnHome.uzaev.com/?VjdL