MORTGAGE PAYMENTS

Property Taxes

home insurance

utility payments

ROUTINE MAINTENANCE

MORTGAGE PAYMENTS

Property Taxes

home insurance

utility payments

ROUTINE MAINTENANCE

TAX

The first, and most obvious part of your homeowner budget is your mortgage payment. This monthly cost depends on your bank and loan. A longer loan means lower payments, but usually means a higher amount of interest you have to pay back to the bank.

Many homeowners forget that with a home comes property tax. Usually property tax is paid bi-annually, and the taxes themselves vary from state to state. The tax almost never remains constant either; it’s usually increased each year. Thus, this is a place in a homeowner’s budget to include some flexibility.

If you have a mortgage, you’re required by law to have home insurance. If you don’t have a mortgage, and your home is paid off, it is still a great idea to have home insurance to protect your investment. Home insurance protects your home from natural disasters or burglary.

Most renters are aware of utility payments – water, electricity, or gas. However, when you own a home the utilities increase. You’ll have to pay for sewer and trash removal costs. Homeowners should also factor in phone payments, internet payments and cable payments, which may have been included in their rental property for free.

Set aside some money for repairing systems, but you should also save money just in case an appliance fails. Save for repairs and keep track of how old your systems and appliances are in a notebook. That way, homeowners will know when their appliances will most likely break down. Getting a home warranty on your house can also help to save money.

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BUDGETING FOR

OWNERSHIPHOME