Buying a home is a monumental milestone, but what many don’t realize is that the mortgage payment is just the tip of the iceberg when it comes to home expenses.
Hey y’all! I’m Anita L Williamson, Associate Broker with James River Realty Group.
Your mortgage payment is the amount of money you pay each month towards your mortgage loan. Remember that your mortgage is made up of your principal (which is the amount of money you borrowed to pay for your home) and the interest on that principal amount. However, when you pay your mortgage payment each month, you’re paying for more than just your mortgage. Let’s go through a few of the most common things that you’ll pay each month as part of your mortgage payment.
Property Taxes.
Your lender typically includes your estimated property taxes in your monthly payment by dividing your home’s annual property tax rate into manageable monthly installments.
Homeownership Insurance
Your annual premium is broken up into monthly payments, kind of like your car insurance. That monthly payment is added to your monthly mortgage payment. Homeowners insurance is one of the portions of your home payment that you have control over. You can shop around and find the homeowners insurance that offers the best coverage for you and fits your budget.
HOA Fee
If your home is a part of an HOA, you’ll also pay a monthly HOA fee. This may or may not be a part of your monthly payment.
You’ll also want to put some money aside for utilities and future maintenance costs each month so you have a buffer if your fridge dies or you have a high electric bill. When you own a home there is no landlord to call! It’s all on you!
Since your mortgage payment is just one part of the cost of owning a home, you need to factor the other components in while you’re figuring out how much you can afford. Ask your lender to walk you through a breakdown of the monthly payment. Your goal is to understand exactly what your monthly payment is going to look like and make sure that it fits into a realistic budget.
If you are ready to take the leap into home ownership, reach out to schedule a buyer consultation today!
I’m Anita L Williamson helping you establish roots in Central Virginia.
