With today’s state of the economy, the costs of owning a home keep on increasing.
Everything you need to know about the costs of owning a home. (Photo: Irish Mirror)
Costs of Owning A Home
When purchasing a home, it is important to consider all of the costs of owning a home and others associated with homeownership, not just the monthly mortgage payments. Additional expenses such as property taxes, home insurance, utilities, and maintenance should be factored into your budget when thinking of the costs of owning a home.
Mortgage lenders tend to be cautious about approving loans that are beyond your income capacity, especially with today’s high costs of owning a home. It is common for homeowners to spend an average of $1,180 per month on top of their mortgage payments.
The costs of owning a home should be accounted for before committing to a home purchase. It is crucial to research and understand all the expenses associated with the costs of owning a home and owning a specific property.
To avoid overspending, aim to keep predictable costs of owning a home, including mortgage payment, property taxes, and homeowners insurance, below 30% of your take-home pay.
However, according to a published article by the ascent, this formula does not account for variable expenses like utilities and maintenance. Therefore, it is recommended to limit these expenses to 20% or 25% of your income to provide flexibility for other costs, especially the costs of owning a home.
Proper preparation and research can help avoid financial struggles once you become a homeowner.
The Money You Need To Prepare To Buy A House
In a published article by Bankrate, buying a house can be expensive and overwhelming, especially in 2023 with high prices and rising mortgage rates. However, purchasing a home is still a beneficial financial move. Key costs to consider are downpayment, closing, prepaid, and moving costs, house payments, and ongoing homeownership costs.
