The True Costs of Home Ownership
What does it really cost to own a home? The monthly mortgage payment is only the beginning. Additional costs, estimated by some to be as much as another 45% of that mortgage payment, may be involved. These include property taxes, private mortgage insurance, homeowner’s insurance, homeowner’s association dues, and maintenance costs. It may sound trivial, but furniture and other furnishings can be a large expenditure, too.
The cost of home ownership has gotten more expensive, too. Both home prices and mortgage rates have generally been on the rise lately. However, according to this recent Bankrate article, the cost of renting a 3 bedroom home is more expensive in most areas of the country than the cost of purchasing a similar home. There are pros and cons to both buying and renting.
Determining whether it’s the right time to buy a home is a huge decision. If you think you are ready to consider home ownership, contact a Cornerstone loan officer at 615.385.6898.