What are the monthly costs of owning a home?
Needless to say, you’ll have financial responsibilities as a home owner. Some of them, like taxes, may not be billed monthly, so you would need to do the calculations and break them down into monthly costs.
Here’s a list of these expenses:
- The Mortgage Payment;
For most home buyers, this is the largest monthly expense. The actual amount of the mortgage payment can vary widely since it is based on a number of variables, such as mortgage term or amortization.
- Property Taxes;
Property tax can be paid in two ways – remitted directly to the municipality by you, in which case you may be required to periodically show proof of payment to your financial institution, or paid as part of your monthly mortgage payment.
- School Taxes;
In some municipalities, these taxes are integrated into the property taxes. In others, they are collected separately and are payable in a single lump sum, usually due at the end of the current school year.
As a home owner, you’ll be responsible for all utility bills including heating, gas, electricity, water, telephone and cable.
- Maintenance and Upkeep.
You will also have to cover the cost of painting, roof repairs, electrical and plumbing, walks and driveway, lawn care and snow removal. A well-maintained property helps to preserve your home’s market value, enhances the neighborhood and, depending on the kind of renovations you make, can add to the worth of your property.