Mortgage Payments and Other Costs

October 12, 2012 | Posted by: Mike Garganis

As a homeowner, you will have a monthly payment to make on your mortgage. Quite often you will qualify for more than you expected. This is where preparing your budget beforehand is important. Remember, your goal is to not over-extend yourself financially. Let your budget be your guide in determining how much mortgage to take on.

You know how much you have to spend, but not all of it can go towards the purchase price of your new home. Some of it will be used to cover costs associated with buying and moving into a home.

Other upfront costs to consider:

  • Deposit: up to 5% of the purchase price, made when you make an offer to purchase.
  • Home Inspection Fee: generally $500.
  • Prepaid Property Taxes and/or Utility Bills: to reimburse the vendor for prepaid costs such as property taxes, filling the oil tank, etc.
  • Property Insurance: covers the cost of replacing your home and its contents. Property insurance must be in place on closing day.
  • Survey or Certificate of Location Cost: $1,000 to $2,000 range.
  • Legal Fees and Disbursements: must be paid upon closing. Minimum of $500.
  • Land Registry Fees: a percentage of the property’s purchase price. Check with your lawyer/notary to find out the current rates.
  • Property Appraisal Fee: between $250 and $350.
  • Moving Expenses.
  • Furniture, etc.

Keep these costs in mind as you prepare your budget.

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