4 expenses homebuyers should keep in mind
01/29/2016 | Author: Jaime Lee
When starting your house hunt online, you'll see that most real estate websites let you search by price range. But a real estate purchase will cost you more than just the sale price. Here are four costs you'll want to consider before submitting an offer.
- Down-payment Some lenders require borrowers to pay up to 20% of the loan at closing. It may take a while to save up that much, but paying a chunk of your loan up front will lower your monthly payment.
- Mortgage insurance If you don't pay at least 20% of the purchase price as a down-payment, your lender will probably require you to pay private mortgage insurance (PMI) that protects the lender if you default on the loan.
- Closing costs Buyers and sellers can negotiate how much each party pays at closing. Unless the seller agrees to pay all of the closing costs, you'll be responsible for paying a portion of these fees.
- Monthly payment Your payments will cover principal, interest, taxes, and insurance. You may have other recurring expenses, such as HOA dues and home maintenance, to factor into your budget.
https://www.texasrealestate.com/advice-for-consumers/article/4-expenses-homebuyers-should-keep-in-mind#sthash.hUDOqrXy.dpuf
