Other then mortagage what type of other payments does a house come with?? (monthly or yearly)
One of your answers is almost complete. Your mortgage payment is just one of your responsibilities: taxes, insurances, and, if applicable, PMI (private mortgage insurance).
If your home is a PUD or a Condominium, you’ll more than likely have "association dues." This payment is often more costly than Hazard or Fire insurance, but it covers outside maintenance of your home. Items like your roof, ground maintenance, and dwelling are covered, but not interior protection. This comes at an additional cost to you and is often called "renter’s insurance."
If you purchased your home with less than a 20% of a downpayment, you may have to pay an additional insurance call PMI (Private Mortgage Insurance). This is an insurance which protects the LENDER and not you. Since your down payment is less than 20%, lenders consider your loan as a higher risk, so PMI is assessed. There are varying rates which are based upon a lot of factors such as how much more of a down payment, credit, and area. You can avoid this cost through creative financing: two loans instead of one where a first and second mortgage are combined to lower the risk level. The problem with this approach is that you are forced to pay a higher interest rate for the life of the loan whereas with PMI, the monthly cost can be eliminated after two years (if and only if certain terms are met).
Lastly, there can be Flood Insurance which a lender WILL force you to pay. This used to be very costly. Sometimes listing and selling agents aren’t aware of this potential cost until your lender does a search and notices you’re in a Flood Zone. This cost will be as much as 3 times the cost of Fire or Hazard Insurance.
To recap:
For a PUD or Condo:
1. Mortgage
2. Association Dues
3. Renter’s insurance
4. Taxes
For a Home (SFR) or a complex 4 units and under:
1. Mortgage
2. Fire Insurance (or Hazard)
3. Taxes
On as case by case basis which applies to both above:
1. Flood Insurance
2. PMI (MIP) or Private Mortgage Insurance
Ask you agent for all of these potential costs.
Utilities (electricity, gas, water, phone, etc., garbage, property taxes, fire insurance, maintenance.
References :
Closing costs, utility deposits, perhap escrow, insurance, taxes.
Your real estate person should tell you all this stuff.
References :
You have home owner’s insurance and property taxes. Most of the time they will include these in your mortgage payment, so you only have to make one payment a month. Just make sure you ask them if they will include these in your monthly payment.
References :
http://www.mortgageawareness.com
Sometimes you have to pay for garbage and water separate from house taxes.
Plus if anything goes wrong with your house, you have to foot the bill.
If a power line breaks/tree falls on it you are on the hook for that too.
Happy house hunting. Its worth it to own your own home.
References :
One of your answers is almost complete. Your mortgage payment is just one of your responsibilities: taxes, insurances, and, if applicable, PMI (private mortgage insurance).
If your home is a PUD or a Condominium, you’ll more than likely have "association dues." This payment is often more costly than Hazard or Fire insurance, but it covers outside maintenance of your home. Items like your roof, ground maintenance, and dwelling are covered, but not interior protection. This comes at an additional cost to you and is often called "renter’s insurance."
If you purchased your home with less than a 20% of a downpayment, you may have to pay an additional insurance call PMI (Private Mortgage Insurance). This is an insurance which protects the LENDER and not you. Since your down payment is less than 20%, lenders consider your loan as a higher risk, so PMI is assessed. There are varying rates which are based upon a lot of factors such as how much more of a down payment, credit, and area. You can avoid this cost through creative financing: two loans instead of one where a first and second mortgage are combined to lower the risk level. The problem with this approach is that you are forced to pay a higher interest rate for the life of the loan whereas with PMI, the monthly cost can be eliminated after two years (if and only if certain terms are met).
Lastly, there can be Flood Insurance which a lender WILL force you to pay. This used to be very costly. Sometimes listing and selling agents aren’t aware of this potential cost until your lender does a search and notices you’re in a Flood Zone. This cost will be as much as 3 times the cost of Fire or Hazard Insurance.
To recap:
For a PUD or Condo:
1. Mortgage
2. Association Dues
3. Renter’s insurance
4. Taxes
For a Home (SFR) or a complex 4 units and under:
1. Mortgage
2. Fire Insurance (or Hazard)
3. Taxes
On as case by case basis which applies to both above:
1. Flood Insurance
2. PMI (MIP) or Private Mortgage Insurance
Ask you agent for all of these potential costs.
References :