1. Homeowner’s association fee (HOA fee)
If you’re planning on living in a condo, HOA fees are almost always required to cover the costs of maintaining the building’s lobbies, patios, landscaping, pools, and elevators. It may also apply in some neighborhoods, and maintenance fees for co-ops are a similar cost.
2. Mortgage interest
This cost is highly variable depending on your income, debt, credit score, down payment, and length of your mortgage, but expect to pay an annual interest rate of 3% to 5%.
3. Closing costs
These include appraisal fees, attorney fees, title insurance, property transfer taxes, and inspection fees. Closing customs will vary depending on the city you’re buying in, but they usually equate to about 2.5% of the home cost.
Tasks such as house cleaning, yard care, gutter cleaning, carpet cleaning, and pressure washing add up. US households pay an average of $3,435 each year to outsource maintenance costs. It’ll be cheaper to do it yourself, but far from free.
5. Property tax
This is expressed as a percentage of your home’s value and varies depending on location, but as a nation, Americans pay an average of $2,216 in property taxes each year.
It varies person to person and year to year, but plan on setting aside some extra cash for various renovations and updates as they arise.
7. Home insurance
The cost caries depending on where you live – people living in areas more prone to natural disasters or crime can expect to pay more – and whether or not you purchase add-ons, but the national average is $1,000 a year.
Factor in an extra $3,000 annually to cover utility costs such as electricity, gas, and water.
You don’t realize what all your rent went towards and when you have to do it yourself, it costs you a lot – A LOT – of time.
10. Private mortgage insurance (PMI)
This cost only applies if you don’t have a 20% down payment. PMI can cost between 0.3% and 1.50% of mortgage, depending on the size of your down payment and your credit score.
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