Are you a first-time homebuyer? You want to find a home that fits your budget, but what about the costs of owning and maintaining a home? As a new homebuyer, you should account for new and ongoing expenses such as property taxes, homeowners insurance, PMI, and more. Understanding these costs and how they can factor into your mortgage is crucial.
Here are some of the ongoing costs to consider when buying a home:
- Property taxes: Property taxes are usually included in your monthly mortgage payment and are paid to the local government. The amount you pay will depend on your home's value and the area's tax rate. Maine’s property tax rates for homeowners can be found on maine.gov.
- Homeowners insurance: Homeowners insurance protects your home and belongings in the event of damage or loss. The insurance cost will depend on your home's value, your chosen coverage level, and the insurance company you use. Maine homebuyers can research and compare homeowner’s insurance policies to find the best fit.
- Private mortgage insurance (PMI): If you put less than 20% down on your home, you may be required to pay PMI. This protects the lender in case you default on your loan. The cost of PMI will depend on the size of your down payment and your credit score.
- Maintenance and repairs: As a homeowner, you are responsible for maintaining your home and making any necessary repairs. This can include things like painting, roof repairs, and fixing appliances. Homeowners should budget for these costs and have an emergency fund in case of unexpected repairs.
- Utilities: You must pay for utilities like electricity, water, and gas. The cost of these utilities will depend on your home's size and usage.
Understanding these costs and how they factor into your mortgage can help you budget and plan for homeownership. It is essential to factor in these costs when determining how much you can afford to spend on a home and choosing a mortgage that fits your budget.
Are you a first-time homebuyer? Do you have questions about your homebuying budget? Our experienced mortgage team will guide you through the entire mortgage process. We’ll help you determine your financial strategy, mortgage amount, and purchase price. To schedule a free no-obligation consultation, contact KFS Mortgage Company today.
KFS Mortgage Company, Experience, Trust, Peace of Mind.
KFS Mortgage Company, 207-873-5153, www.kfshomeloan.com
NMLS #2097505, ME NLC2312503, Equal Housing Lender