Today, as promised, Palm State Mortgage brings you four more of the “hidden costs” of owning a home.  Do not let these costs frighten you.  They will be out in the light, not buried in the fine print.

We know you can find your American Dream in a home you can afford with careful planning and knowlegeable budgeting. If you missed the first three of our seven hidden costs, please refer back to our last blog, and then add four more.

Please remember that they are by no means the only seven costs associated with home ownership, but they are our top seven.

4.  Furniture and Décor Items:  The fact is you can not furnish a three bedroom house with the furniture from your old one bedroom apartment. Beds and bedding, tables and lamps will drive up the cost of each room, and if you do not manage the purchases with care, expenses will eat into your monthly budget very quickly.

5. Property taxes and homeowners insurance: Let’s make a list for your monthly bill to live in your own home:

  • First, loan amount plus interest, (This not really a “hidden cost.)”
  • It will also reflect property taxes,
  • and premiums for homeowners insurance. (Mortgage borrowers are required to obtain this.)

This is what we call your “PITI,” or principle, interest, taxes, and insurance.  It is your monthly payment, replacing your old “rent.”  In case you did not know it, you can figure between 0.5 to 1 percent of the mortgage loan amount to estimate your insurance. You should know that property taxes differ vastly, depending on your location, but be prepared for several thousand dollars a year.

6. Utilities: Ah, modern life’s little luxuries: warmth, running water, cable television! Special Hint: Palm State Mortgage reminds you to ask your sellers what heating and cooling the place usually cost them. Fees for that cable TV, electricity, water, garbage, sewer, gas and Internet connection will be due monthly.

7. Ongoing Maintenance: Welcome to a new world of responsibilities! You will have to finance everything from replacing the old heater in that first cold winter, to cleaning out the gutters.

The exterior as well as your interior will bring you maintenance problems, which is why budgeting savings for an emergency fund is so important, day to day, week to week, month to month. A home that is outside your budget for payments and upkeep can become a stressful and destructive trap.

As we conclude our two part series on the Seven Hidden Costs Of Home Ownership, we must remind you that we did not give you this list to frighten you away from the idea of ownership. We just want you to be aware of the costs involved. At Palm State Mortgage we endeavor to explain the hidden details of your house financing.

No wonder some people equate the stress of buying a home with getting married. In a way, a house is a living, breathing, member of your family. You are committing to a life time of loving care. In return for a little maintenance and repair, your home will work hard for you and your family. It will keep you safe, warm and secure, and it will support you with a secure place to work, play and grow.

Thank you for reading our blog, and feel free to contact us and ask questions about your mortgage or home buying plans. Palm State Mortgage would love to help you own your American Dream.