If you’re not paying cash to buy your Hilltop real estate, you’re going to have to budget for your mortgage. With your down payment, this monthly fee forms your biggest housing expense. However, you also have additional payments, which you may not be aware of if you’re a first-time homebuyer.
- PMI or Private Mortgage Insurance is based on the value of your loan and protects the lender if you can’t pay your mortgage. It’s often part of your mortgage payment and is due every month. PMI is no longer necessary when you own 80 percent or more of your home’s value.
- Homeowners insurance protects your home and its contents from hazards such as fire and from theft. Depending on the policy, you pay it monthly, quarterly, every six months, or annually and can be folded into your mortgage payment.
- Property taxes are paid twice a year to the state and are assessed on the value of your home. You can make it easier on the budget by asking that they be divided into 12 monthly payments and folded into your mortgage payment.
- HOA or Homeowners Association dues are assessed on condos and homes in new tract developments. They cover community amenities such as the gate, pool, sidewalks, and front landscaping. They are due monthly and paid to the management company.
- Utilities cover electricity, phone, water, trash pickup, gas, cable TV, and Internet access. You must get each one from a separate company to which you owe a separate monthly bill. Each also requires a separate credit check or deposit if you’ve never paid for that utility before. Make sure each service comes on before you move into your home.
If you want more information on buying a home, please contact Metro Denver Luxury Homes.