A new home is a substantial investment, and new homeowners don’t always get it right the first time around. To avoid financial troubles and maximize monthly funds, here are the expenses to know well to optimize a budget.
1. Principal/Interest – This is the most substantial payment homeowners will make. Easily the largest hit to a bank account, a monthly mortgage payment will be a payment made for the life of the mortgage: between 15 to 30 years.
2. Insurance – A new home can require a variety of different risk mitigation policies. These insurance policies include homeowners insurance, hazard insurance and even appliance insurance. All of these policies will be a hefty cost, but they’re necessary. Be sure to shop around for the best policy in regards to price and coverage. Another expense in this category is\
3. Taxes – Two things in life are certain: death and taxes. Be certain that taxes on a new home are not cheap. Although property tax is usually paid twice a year, depending on your location, this tax can fluctuate and changed based on the state. (more…)