Your monthly mortgage payment is only one piece of the pie. You need to factor in taxes, insurance, interest and more. When it comes to the true cost of homeownership, what will your home actually cost you each month?
True Cost of Homeownership
Owning a Thomasville home is a big responsibility. Even with the roller coaster ride we have experienced over the last decade, real estate continues to be a good investment. There is more to buying a home than having good credit and a nice downpayment. Once you are handed the keys, other charges come into effect. That's where the true cost of homeownership can be found.
Mortgage Payment - This will comprise most of your true cost of homeownership. This varies from house to house. Your purchase price, downpayment, interest rate and terms determine your monthly payment.
Insurance Costs - If you put less than 20% down on your new Thomasville home, you will have to get PMI (Private Mortgage Insurance). Many lenders will also require that you carry homeowner's insurance. This varies from state to state. According to ValuePenguin.com, the average annual fee for homeowner's insurance in Georgia is $933. This breaks down to just $77.77 per month.
Property Taxes - Another part of the true cost of homeownership is your property taxes. These are determined by the assessed value of your home. Contact your Thomas County Tax Assessor to find out what you can expect to pay on the home you are interested in purchasing. These can be paid in one lump sum annually or broken down into monthly payments. You decide which would be easier on your budget.
HOA Fees - Not every Thomasville neighborhood is part of a Homeowner's Association (HOA). Some people prefer to have them while others don't. If you do live in a community with an HOA, there are annual fees that need to be paid. This can range from a few hundred to over a thousand dollars per year. Talk to your Thomasville REALTOR® to find out if the home you want lies within an HOA.
Maintenance Costs - Another true cost of homeownership that Buyers forget about is maintenance. Every home needs to be maintained. This includes regular things like landscaping and painting all the way up to appliances and major renovations. Things happen. Stuff breaks down. Things need to be repaired or replaced. There is no way to know exactly how much this will end up costing a homeowner. However, some experts believe you can expect to pay about 1% of your property's value each and every year.
As you can see, there is much more to the true cost of homeownership than the purchase price. What unexpected expenses have you experienced as a homeowner? Please let me know in the comments below.
Featured Thomasville Area Home of the Week
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Julie Bryan, KeySouth Real Estate Group, Thomasville GA Real Estate's Best Service
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