PMIs can range from 0.5% to 2% of your mortgage amount or more. It protects the lender’s investment in the case that you default on the loan. Private mortgage insurance (PMI)Ī PMI is usually required by your lender when you make less than a 20% down payment towards the home’s purchase price. It is an ad valorem tax that has the potential to go up or down every year when your home’s value is reassessed. 3% to 2.5% of the assessed value of your home per year. Property Taxĭepending on where you live, property taxes can be. But, make sure to specify where you want those extra payments applied! 2. TIP: Paying extra money towards your principal every month will lower the interest paid and shorten your loan payoff time. The principal is the amount borrowed, while the interest is the amount that your lender charged for borrowing the money. The amount due is made up of principal and interest payments. Unless you’re able to pay completely out of pocket, these monthly payments are typically spread over a 30-year or 15-year loan. I know you’re already aware of the home loan for your new place, but we’ll just add this one first to make it a complete list. ![]() While you’re making plans, these are the expenses not to forget when buying a home: 1. This is a list of household expenses that have the potential to break your budget.
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