6 Hidden Costs Of Homeownership Uncovered In A New Loan Love Guide

San Diego, CA (PRWEB) May 16, 2014

LoanLove.com helps home buyers to avoid any unpleasant surprises by revealing 6 hidden costs of homeownership that may not immediately be apparent to those who are buying their first home. This article continues to help home owners to get the most out of their experience of homeownership by giving tips that will help them to better judge what type of financial commitment they will be taking on, as well as giving some insight into what to look for in a home loan when it comes to certain additional fees and expenses. This lines up with the goal of the website, which is to help borrowers to find loans that they will love. With first-class knowledge, valuable resources, and connections to top rated industry professionals, the website has quickly become a trusted destination current news and expert loan advice.

This new guide from Loan Love, titled “Home Ownership Costs (Don’t Let Them Sneak Up On You)” states that most new home buyers are more focused on getting the best interest rate and financing for their homes and tend to overlook some of the other costs owning a home will bring. Of course, securing the best monthly mortgage payment is definitely important, but taking a look at the other costs of owning a home is needed to get a better picture of what kind of financial load will be taken on as a new home owner. Loan Love explains that some of these costs will come up as the home buyer is securing financing for their homes or closing on their home and knowing about them can actually help when attempting to find the best home loan program. Other costs will pop up after the home is purchased and the owners are already living in it. But regardless of when the costs occur, it can be very useful for homeowners to know about them beforehand, so they can go into their home ownership experience with eyes wide open and avoid getting caught unprepared.

The first cost that might be overlooked by new home buyers is the closing cost on their home. Loan Love says, “Before you even put the key in the lock, you will need to deal with closing costs, which vary from state to state, but can run into thousands of dollars. The list can get lengthy, but the list of closing costs typically include the appraisal, inspections, title insurance fees, fees related to pulling your credit report and other expenses. You can expect closing costs to run about 2 to 5 percent of the purchase price of your new home. Depending on your agreement with the seller and what is contained within your accepted purchase to offer, the seller may assume all or a portion of the closing costs, getting you off the hook. You may also include some of expense in your offer so that you do not have to come up with the additional cash upfront.”

Private mortgage insurance is the second thing that might be one of the hidden costs of owning a home. Private mortgage insurances, or PMI, applies to those whose down payment is less than 20 percent of the home purchase price. PMI allows borrowers to put down less on their home while also offering some protection for lenders against default. The other costs of owning a home that the article takes a look at are: home owners insurance, property taxes, ongoing maintenance and repairs, and the costs of furniture and decorating.

To find out more about these different costs, click here to read the full article at LoanLove.com.

PDF Print