Closing on a new home is very exciting, especially for first time homebuyers! You are now part of the “American Dream.” But besides your new monthly mortgage payment, you are going to have a few other regular expenses you may not have had in the past. Here are a few examples and considerations to think about.
Property Taxes
Ultimately your location will determine how much you will be paying in property taxes, a good rule of thumb to anticipate is paying around 2% of your current home value each year in property taxes.
Utilities
If you were a renter in the past, you may have had your utilities included in your rent and even if they weren’t, you probably paid less in the past then you will now with your new home on items such as electric and water.
Homeowners Insurance
Once you become a homeowner, property insurance is another added expense. Some people incorporate it in their monthly mortgage payment but others like to pay it separately. No matter what, it’s another expense you may not have incurred in the past.
Buying a new home is exciting and there are many great financial benefits that can come from it (especially in this current market we are in). You should though know what you are getting into ahead of time before you make those final signatures on the closing table.
For additional questions on home ownership and what’s involved for a new home owner contact Alliant Title and Escrow at 561-912-0922.