It All Adds Up. These Monthly Bills Mean You MUST be a Homeowner!

Date: February 22, 2017

We recently kicked off a money-saving challenge that promises to help anyone – on any budget – save a few bucks in a year’s time. Of course, one of the first steps in saving money is knowing when and where you are spending it!

If you’re a homeowner, there are few places you can count on spending your money each and every month. Yes, along with the new house keys you receive at the closing table, you’re also inheriting a few standard monthly costs.  

Here’s a closer look at the monthly bills you’re sure to pay as a homeowner:

• Mortgage Payment. Well, obviously, unless you’re paying for your home in full up front! But, since your monthly mortgage payment is most likely your highest monthly expense as a homeowner, this regular bill just had to top this list!
• Homeowners Insurance. Speaking of the closing table and your monthly mortgage payment, you can include homeowners insurance as another must-have monthly fee when it comes to owning a home. In fact, you’ve got to have homeowners insurance in place to complete the closing process when you first buy a home. This monthly fee is typically included in your mortgage payment and it protects your home against things like fire and theft – but, not usually from things like floods or other natural disasters. Those events fall under hazard insurance – a different “extra” monthly cost that some homeowners face.
• Property Taxes. Because what are those two certainties in life? Death and taxes. Along with your new home, you’ll incur property taxes that likely will be included in your monthly mortgage payment. This regular homeowner fee takes care of services like your local police and fire departments, along with public road maintenance around your home.
• Ok, we know that both renters and homeowners face utility fees; however, they are usually higher once you’re responsible for an entire home. Regular monthly utility fees may include electric, gas, water and trash removal. But, these days, why not include your monthly cable, internet and mobile phone charges as well? Unless, of course, you do without those “necessities” each month.

While those four monthly bill categories are more-than-standard for most homeowners, there are a few other categories that are pretty regular for many homeowners, too. Here are more of the monthly bills that homeowners may pay:

• Private Mortgage Insurance (PMI). Unless a homeowner is able to put down 20% of their home’s purchase price, they may not be able to secure a mortgage without paying PMI. This is a monthly fee that is included in a mortgage to protect a lender in case a homeowner is unable to make their monthly payment. The good news for homeowners who pay PMI is that this fee also can be cancelled once they meet that 20%.

• Homeowner Association (HOA) Fees. Again, not every person who buys a home is going to pay HOA fees; but, if you buy a condo, apartment or single-family home in a newer development, you may face HOA fees. These monthly fees cover everything from routine upkeep and maintenance to any shared amenities like pools, playgrounds and tennis courts.

Many homeowners also would advise keeping money on-hand each month for regular home maintenance costs and pop-up home issues like clogged sinks, leaky roofs or snow removal. But, hey, that’s all a day in the life of being a homeowner, right?

Are you ready to take on the title of homeowner and the monthly fees that may go along with it? Let us help!  Start your home search today!

This post is sponsored by PA Preferred Mortgage:

Pennsylvania Preferred Mortgage is a full service mortgage banker and is a member of the Prosperity Home Mortgage, LLC family. Specializing in residential and refinance loans, Pennsylvania Preferred Mortgage offers a wide range of mortgage products, including fixed and adjustable rate mortgages, jumbo loans, Federal Housing Administration (FHA) and Veterans Affairs (VA) loans, and renovation financing. Learn more at www.papreferredmortgage.com.