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Identifying Your Monthly Expenses After the Home Purchase

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By : Roby Hicks    99 or more times read
When planning to purchase a home, you have to think of the monthly mortgage and related expenses you will incur. This will help you decide on how much property to actually purchase and how much down payment you will make. The right decisions will help ensure that you will enjoy your home, rather than worry about how to make ends meet.

Make sure that you consider the following when computing for your monthly expenses:

Your monthly bills

If you wish to live comfortably, you will need to pay your monthly bills. If you fail to do this, then your water and power services will seize. It will cost you additional fees for reactivation and the services may take a while. This makes it essential that you include this in your monthly budget. When you have moved from a smaller place to a bigger house, see to it that you allocate a bigger amount. Your energy and water consumption will surely increase as well.

The repair and maintenance expenses

Since you own the house, you will be responsible for its repair and maintenance. There should be a budget for repair and maintenance so that you will have something to use when a portion of your home is damaged. Better yet, invest in a home warranty. Just make sure that it has a good coverage or you will be paying for nothing.

Your home insurance

Home insurance is compulsory in order to borrow from the lender. Without this, your mortgage loan will be rejected. This is also an important endeavor to protect your home. Shop around for a good deal. There are inexpensive policy with good coverage. However, make sure that the company is in good standing. See to it that the insurance company is reputable. It should be able to provide assistance when you need it. Examine the coverage of their policy as well.

The Private Mortgage Insurance

This will be a requirement if the down payment made did not reach 20% of the amount borrowed. If you do not want to deal with PMI, see to it that you make at least 20% in down payment. Paying such amount will also help reduce the monthly mortgage you will pay, making it more affordable.

HOA fees

This will depend on where your new property is located. If you were able to purchase a condominium unit or a house in a subdivision, then expect to pay HOA membership fees. To learn about the fees and charges of the association, inquire about this prior to buying a house or unit.

Property taxes

All property owners will pay property taxes. To anticipate the amount you will pay annually, get the property tax rate in your State. After computing for your property tax, get the amount you need to set aside monthly. This way, you will know just how much you will spend monthly for your home ownership.

Consider the above-mentioned expenses when calculating the monthly cost of owning a home. This will help you anticipate the right amount and make the right preparation.
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