Renting gets old, doesn’t it?
If you’re like many renters, you’re ready to dive in and buy a home—but there are a few things you need to know before you make the biggest purchase of your life.
What Does it Cost to Be a Homeowner?
When you’re renting and something breaks, you call the landlord. He or she fixes it, and you’re good to go.
Not so when you own the home. You’ll be responsible for repairs, upgrades, and maintenance—and that’s on top of the mortgage payment, homeowner’s insurance, and homeowner’s association dues in some places. You’ll also have to pay real estate taxes, but in many cases, those are lumped in with your mortgage, so you won’t feel the pinch when they’re due. (Talk to your lender, though; this isn’t always the case.)
Monthly Mortgage Payments
Principal and interest—the amount you borrow, plus interest you incur when you pay it back—make up your monthly mortgage payment. Your payment will depend on:
- The amount you borrow (and how much you put down as a down payment)
- Taxes, in some cases (only for those whose tax payments are held in escrow by their mortgage lenders)
- Your interest rate
- The type of loan you choose
Homeowner’s Insurance
Your lender will most likely require you to purchase homeowner’s insurance, just like you have to do when you buy a new car. This protects the lender’s financial interest if something happens to your house.
Homeowner’s Association Dues
Not all communities have homeonwer’s associations, or HOAs. However, for those that do, it’s usually paid monthly. HOA dues vary in each community, so make sure you ask your Realtor® how much they are, or whether there are any at all.
Real Estate Taxes
On average, real estate taxes are around 1.2 percent of your property’s value each year. That’s not the same everywhere, though, so make sure you talk to your Realtor and your lender so you can get a more exact figure.
Are You Looking for North Florida Land for Sale?
If you’re trying to find land for sale in Lake City or the surrounding communities, we’d be happy to help.
Call us at 386-243-0124 or contact us online to tell us what you’re looking for; we’ll start searching right away.
