When you are shopping for a home a mortgage calculator is a very common and useful tool to help you determine what your housing cost might be. However there are other factors that you should keep in mind when you are making your budget. Here are five additional fees that you should be aware of prior to estimating your monthly mortgage payments.
Property taxes vary depending on the value of your property in the town that you live in. They are typically paid into an escrow account along with your loan payment. The bank then takes care of paying the city on your behalf. Estimating your taxes can be difficult which is why this is best discussed with your loan officer.
Homeowners association fees
Depending on the area and neighborhood you are looking at you may very well have an HOA fee. It is used to enforce rules for the community, maintain the community and make repairs and updates. These fees are typically paid quarterly and they are a requirement for specific neighborhoods. You should familiarize yourself with the HOA fees in the neighborhoods that you are searching to make sure that these fees fit into your monthly budget.
Homeowners insurance is a very important policy that is necessary for all homeowners. If anything were ever to happen to your home, your homeowners insurance will help you with recovery. The cost of homeowners insurance varies depending on where you live. If you are in a hurricane area or flood zone your insurance policy could be much higher than in a lesser prone area.
Every dwelling will have some type of repairs and regular upkeep. You will have to be sure you have the funds to take care of any issues that may come up. Estimating your maintenance and repair costs is nearly impossible however you should build up your savings so that you don’t have to worry if the situation arises.
Your cooling costs, water bill and electric are monthly payments that you must keep in mind. Homes in Florida run their air-conditioners for most of the year which causes your electric bill to go up. You should also consider if you need to pay for sewer and garbage collection as well.
When you are in the market for a new home you will surely turn to the mortgage calculator to help you out however keep in mind these five additional monthly costs that you may have overlooked. When you are ready for a mortgage for your new home call the experts at Florida Real Estate Lending.