| |
| |
|
Nationalrealtyresource.com
|
| Home | Find a topic | Links | Guest Book |
| Welcome |
|
|
|
Expense List for Buying a Home
There are many expenses that come with buying a home. The following list is a good example of what to expect: Down payment - A minimum of 20% of the home's purchase price is usually required for the best loan terms and to avoid paying private mortgage insurance (see below), but it's entirely possible to buy a house with a smaller down payment. Monthly mortgage payments - Include loan principal, interest, and sometimes additional charges for taxes and insurance. Property taxes - Amounts vary, but the average is around 1.5% to 2% of a home's purchase price. Homeowners insurance - Again, the cost varies. Call insurance companies for more information, or contact the Florida Department of Insurance for surveys of prices for insurance rates. Private mortgage insurance (PMI) - If your down payment is less than 20% of the purchase price, this can tack several hundred dollars each year to your loan costs until the equity in your home reaches 22%, when you no longer need the insurance. Maintenance - Varies year to year, but you may spend about 1% of the purchase price annually on maintenance and repairs. Closing costs - Include points and other fees charged by the lender, which can add up to 3% of the amount you borrow; title insurance, from a few hundred to over a thousand dollars, depending on the purchase price of your home; inspections, about $200 to $500; and other miscellaneous fees. Many of these costs are negotiable between the buyer and seller, and are dependent on local customs. You can also negotiate with the lender to reduce, and in some cases completely waive, certain costs. Housing expense ratio Typically, mortgage lenders won't allow these housing expenses to be more than one-third of your household monthly gross income. In other words, 28% of your monthly gross pay (for example, your annual salary divided by 12) is the usual maximum "housing expense ratio" allowed by lenders. The "housing expense ratio" compares your monthly gross income to "PITI," an acronym for: * Principal, or the amount you borrowed, of your mortgage loan * Interest on the mortgage loan * Taxes: property taxes * Insurance: homeowners and private mortgage insurance (PMI) Debt-to-income ratio. On top of the 28% lenders allow for monthly housing expenses, they will usually let you spend another 10% for other debt repayments such as student loans, car loans and other similar loans. Added together, your housing expense ratio and monthly recurring debts make up your "debt-to-income ratio," and should not be higher than 38% of your monthly gross pay. Now the Good News The good news is that there are tax benefits to owning a home. The IRS lets you deduct mortgage interest and real property taxes, within limits, on your annual income tax return! Contact a real estate or tax attorney for the specifics in your area. Genesis Font is an SEO and Developer for LoansInteractive.com> Mortgage and Loan Officer Websites. We also offer Quality Web Hosting Services.
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Real Estate Investing - House Problems Houses can have lots of problemsReal estate investing requires expertise in recognizing these problems and the costs for repair.Sometimes you stumble onto a jewel investment by discovering a house where mom was an excellent housekeeper, and all that's necessary is minor cleanup of the premises to prepare for selling. Real Estate Investing: Infomercial and Mentoring Scams Flipping through late-night infomercials recently, I saw two real estate get-rich quick schemes, and I couldn't help but wonder why people still fall for those old scams? Has anyone really talked a seller out of his home for no money down with owner financing lately?Real estate infomercials do great harm to beginning investors, who waste hundreds of dollars on old information. Worse yet, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing. How Do I Implement The Lease Purchase Plan? Well, as we have discussed in previous newsletters first you have to set up goals for yourself, both long term and short term. Don't forget these goals define how your business is run. Minneapolis Warehouse Loft Downtown Minneapolis is rich with true metropolitan charm. With the growth of an incredible entertainment district, a wonderful artistic community, and all the opportunities of a large urban center, downtown Minneapolis is pleasantly thriving. Are Signs Important? Signage, though quite fundamental in nature, plays an important role in the home selling process. The Yard Sign should be two-sided, easy to read, and look great (defaced or worn signs can negatively impact curb appeal). NAR� Broker Will Swear It - Real Pro' Agents Share It - FSBO Truth For posting the "Truth" on your website, some FSBO's will not like you. These prospects would not have listed with you anyway. 7 Marketing Methods for Real Estate Coaches You shower, shampoo, dress your best, check to see if you have plenty of business cards, drive about an hour, introduce yourself by saying "Hi, I'm Mary and I'm a coach" and the other person says, "Hi, I'm Jack and I'm a coach, too!". You meet more coaches than you knew existed. Land for Sale Think owning land would cost a fortune? Think again! While land prices on the extreme coasts motors upward, there are millions of parcels for sale throughout the USA that can fit into anyone's budget. There is probably a land deal that could make you a profit happening right under your nose right now. Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less For decades, the real estate world turned in a predictable manner. The roles of buyers, sellers and real estate professionals were fairly well defined and transactions followed a predictable path of yard signs, newspaper ads, open houses and miles of paperwork. Wealth Building - An Advantage of Home Ownership As you grow older, the issue of wealth building comes front and center. Wealth building simply refers to increasing the net value of your total assets. Home Inspectors: 5 Tips to Choosing the Right One Choosing the wrong Home Inspector can cost you a lot more than the fee you paid. If you choose a home inspector solely on price alone, your headed down a dangerous highway. Victorian. Modern. Colonial. What's Your Architectural Style? You are attracted to a home for more than its number of bedrooms and square footage. Whether consciously or subconsciously, you are drawn to the individual character of a home. Investing In Commercial Property Why commercial property?Compared to residential property investments, commercial property offers some key advantages:Long-term secure cashflow -- Commercial lets normally have long lease contracts, with periods of 10 years and more not being uncommon. In addition to this, commercial property tenants are less likely to default on payments and even if the tenant goes into liquidation, the liquidator may continue paying the rent in order to stop the lease being forfeited. Expenses of Home Ownership Hopefully all goes smoothly when you purchase your home. In your anxiousness to become an owner it may not have crossed your mind and no one tells you, your'e not done spending money on this transaction. Investment Property Part I: How Not to Become a Slumlord After riding the ups and downs of the stock market roller coaster for a while, an increasing number of investors are looking into property investment as a more stable alternative. With hot markets in many parts of the United States, the time may be ripe for you to get into this potentially lucrative trade. 10 Tips for Investing in Distressed or Foreclosed Properties 1. Search on the world wide web for distressed or foreclosed properties as a starting point. A Beginners Guide to Flipping Houses If you're dreaming of making money in real estate, it's time to stop dreaming and get to work, because making money in real estate isn't just a vague pipedream. It can be done, even by a young and inexperienced person, when you learn how to "flip" houses. The Costs of Transforming Your Home into a Buyers Dream House Turning your house into the home of a buyer's dreams doesn't have to cost a great deal of money. In fact, armed with some paint and the determination to work hard, most home sellers usually need to invest only about $500 to spruce up their homes for a quick sale. What Does It Take To Be A Donald Trump in Real Estate? Since you are a business oriented person, you might be thinking: "oh, great, here it comes another fad that sounds to good to be true and I don't have time for this now." Well, the fact is, like gravity you do not have to believe in Feng Shui for it to work. Real Estate Investing Contracts on Toilet Paper Even if your real estate contract has been written on toilet paper, it's valid.Content of your real estate investing contract is what's important.
|
| |
| |
|
Home | Guest Book |Site Map | Recommended Resources | Search Powered By: TJTMEDIA |
| © 2006 |
