How Much House Can I Afford – Whats Included In A Mortgage Payment?
The first thing you should do when you have decided to buy a home of your own is to figure out how much you can afford to spend. Your Realtor should be able to help you figure this out. Your lender will tell you what you qualify for based upon your financial situation. There are also various calculators online that can help you determine your budget as well. There are other expenses that you must include when you are working up your home buying budget. In addition to the monthly principal and interest payment, you will most likely have all or some of the following expenses too: 1. Mortgage Insurance (either MIP or PMI) 2. Real Estate Taxes (payable every year to your County and/or State) 3. Homeowner’s Association Dues 4. Homeowner’s Hazard Insurance 5. Maintenance fees for general upkeep What are all of these fees? The principal and interest fee covers the basic repayment of the money you borrowed to purchase the house. The mortgage insurance protects the lender if you default on your
Related Questions
- My homeowner’s insurance policy is included in my house payment every month to the mortgage company. Does the mortgage company decide on my policy options?
- Can a mortgage payment be included in a debt management plan? If so, how is the fee the licensee may collect calculated?
- Are the property tax and insurance included in the monthly house payment?
