MINT HILL, NC – As we gear up for the spring market, many people are budgeting for that perfect home! Whether it is purchasing a first home, upsizing for a growing family, or downsizing, the best conversation before looking is putting together a budget. Usually on a home purchase that budget is mainly going to consist of getting a monthly payment that is comfortable for the buyer. This conversation always leads to, what does the monthly payment include?
Monthly payments, in a general sense, include the mortgage (principal and interest), homeowners insurance, property taxes, and mortgage insurance (if 20% down payment is not achievable). The property taxes and homeowners insurance are bills that come out only once a year, BUT the mortgage company will collect 1/12th of the bill each month, putting the money into an “escrow account.” Essentially that is a savings account, on the buyers behalf, so when the bills come due, that account pays them! Now keep in mind, property taxes vary from county to county and city to city. Homeowners’ insurance varies from townhomes, to condo’s, to single family homes. Knowing this is extremely key when budgeting because location and type of home certainly do matter, and can alter the payment greatly.
All in all, it is always best to reach out to a loan officer to get a specific monthly payment on each home interested in before placing the offer. If needed, feel free to reach out (firstname.lastname@example.org / (704) 430-6138.
Have a great week!