The payment is only part of a home's cost
THE HOME GUIDE · 12
The payment is only part of a home's cost
A home budget works best when it covers more than the mortgage.
ABOUT 3 MINUTES TO READ
A QUICK LOOK · THREE THINGS TO KNOW
01 / START HERE
Start with the loan payment
Your mortgage payment is a big bill.
02 / START HERE
Add the bills that keep coming
Think about home tax, insurance, heat, power and water.
03 / START HERE
Leave room for repairs
A roof or furnace may need work one day.
It is easy to focus on the monthly mortgage payment when looking at a home. Taxes, insurance, power bills and repairs also need space in the budget.
PART 01
Start with the loan payment
Your mortgage payment is a big bill. It is not the full price of living in a home. A budget should include the bills that come after move-in.
PART 02
Add the bills that keep coming
Think about home tax, insurance, heat, power and water. If you own a condo, add the monthly condo fee. Some costs will change over time.
PART 03
Leave room for repairs
A roof or furnace may need work one day. Set aside some money for repairs and make sure you still have room for daily life.
A SMALL STEP YOU CAN TAKE
One thing to check today
Make a monthly list of all home bills. Add money for repairs, too.
HOW TO USE THIS
If you are buying or selling
If you are buying
Ask for past bills and check what may change after the move.
If you are selling
Have clear facts about bills and recent work ready when asked.
SAVE THIS LIST
Three questions worth asking
- Which recurring costs have I omitted?
- What major expenses could arise in the first year?
- How much cash is required in addition to the down payment?
SOURCE AND FURTHER READING
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