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Tuesday, February 04, 2014

Home Ownership Costs - Beyond the closing statement.

You have the mortgage pre-approval.  Although you may not have an exact amount, your projected future mortgage payment is probably pretty realistically estimated. 

Your mortgage payment consists of a small portion that goes toward the original amount borrowed (principal), interest, taxes and insurance.  Of these PITI components, the tax and insurance costs are not fixed (and sometimes the interest rate will change).

Associations fees are something you will be able to add to the projections when you narrow down your home choice.

But there is something that must be factored into the home buying calculations that does not have a real defined amount  - upkeep.

There will be appliances that need repair or replacement.  The roof will wear out.  AC systems fail.  There will be routine maintenance.  If you live in an area that has septic systems there will be maintenance required at some point.

Flooring wears out.  Depending on the exterior of your home there may be stucco repair issues or deteriorating wood siding.  There may be routine termite inspections and treatment.

None of this does not take into account any updating that may be necessary later.

Although it is not a line item on your closing statement it is none the less an important item to consider.

Deferred maintenance can cost even more if you find yourself extended beyond your ability to address issues as they arise.  And when you are ready to sell your Brevard County, Florida home the costs will be clearly shown.

 Image courtesy of AKARAKINGDOMS /

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