Cost of Owning/Maintaining
We should all agree that owning a property is the biggest investment of our lifetime and that the benefits out weigh the cost of maintaining the property.
Now lets look at the cost of owning a home:
(1) Mortgage: - The monthly installment payment of the cost of buying the property. This payment is spread out for 360 to 372 months in accordance to the mortgage contract. Please check your mortgage contract for details.
(2) Interest rate: - A percentage charge over your mortgage, P&I (Principle and Interest) amount. The plus side is you get to deduct this amount from your taxes at the end of the year. It reduces your taxable base income. This is one of the benefits of owning.
(3) Property Tax: - A yearly assessment on your property by the Local Government. Please check with your assessment board for type and actual amount. This yearly tax is divided by twelve months and added to your monthly mortgage.
(4) P.M.I.: - (Private Mortgage Insurance) this amount is part of your mortgage assessment due to the fact that your initial down payment is less than 20%. In most cases it can be up to 1% of your mortgage. Please check your mortgage contract for the actual percentage or amount.
(5) Home Insurance: - Hazardous Insurance is required with all mortgages. This has various coverage. Please check your contract for details.
(6) Home Owner’s or Condo association: - This is a monthly subdivision maintenance charges. Please check your association for coverage.
(7) Miscellaneous Expenses: - These are your basic expenses, which ranges from Utility bills to Lawn care.
So what is your actual monthly mortgage payment?
Monthly Mortgage is: -
(a) Home price X Interest rate = to Mortgage P&I amount.
(b) Yearly taxes divided by 12 = to Monthly taxes
(c) Yearly P.M.I. divided by 12 = to Monthly payment
(d) Monthly H.O.A = to Monthly payment
Monthly payment.
Please use your settlement documents for actual figures.
Just remember we will come to you if you are too busy to come to us.