October 03 2019

Digital Mortgage 19

Digital Mortgage 19 took place from September 23-24 in Las Vegas. Three of our Executives had the honor of presenting at the...

Read More

September 24 2019

Understanding Your Loan Estimate

As part of your mortgage transaction, the Consumer Financial Protection Bureau (CFPB) requires that you receive a Loan Estimate...

Read More

September 20 2019

Eagle to Attend Digital Mortgage 2019 Conference

The Digital Mortgage conference features keynote speakers, panels, and live demos. Attendees will learn from top mortgage...

Read More

September 05 2019

What to Expect If Your Mortgage is Sold

Closing on a home only to find out your mortgage has been sold to another lender can be alarming yet is very routine in the...

Read More

August 22 2019

5 Ways to Protect your Home from Invasion

In the US, according to the Department of Justice, almost 4 million household burglaries occur each year. While these are...

Read More

August 19 2019

Don’t Let Credit Bumps Hold You Back

While your credit is an important factor when considering homeownership, a common misconception is that you need perfect credit...

Read More

August 09 2019

How Credit Impacts Home Pricing

Your credit will influence your homebuying experience, from setting your sights on a home to securing a loan and everything in...

Read More

July 31 2019

Your Reverse Mortgage Questions, Answered

If you are 62 years of age or older, could use a cash infusion and have a large amount of equity in your home, a Reverse Mortgage...

Read More

July 24 2019

Benefits of Downsizing: Money

The average size of homes is decreasing as the number of homeowners deciding to downsize increases. A smaller home could mean big...

Read More

12345Last

BlogHomebuyingFeatured October 17 2019

What to Expect: The True Cost of Homeownership

Most soon-to-be homeowners are prepared to budget for their mortgage payment and down payment, but you should go into your dream of homeownership with a clear picture of all of the costs associated with this milestone. There is a long list of pros to the investment of owning a home, including building up equity, tax benefits, and control over the decisions you make about your living space. Eagle Home Mortgage is here to make sure you’re prepared for your homebuying journey. We have outlined some costs that may not be at the top of your mind when it comes to estimating how much home you can afford.

Closing Costs

Closing costs can include a long list of expenses including mortgage taxes, lender application fees, attorney’s fees, title insurance (the insurance policy for the deed), recording fees (paid to the county clerk’s office to record the deed), and any potential real estate tax reimbursements if the seller has paid them upfront. All in, you’re generally looking at an average of 2 to 4 percent of the total cost of the home. Closing costs will also vary from state to state. Make sure you understand what’s included in your closing costs before you buy.

Homeowners Insurance

A mortgage will also require the purchase of homeowner’s insurance, which will cost more than the renters insurance you’re probably used to. Factors such as the age of the house and your credit score will impact the cost of your homeowner’s insurance. Insurance companies can even monitor your credit score overtime and raise your rates accordingly. Note, if you live in a flood zone, earthquake zone, tsunami zone or volcano zone, you’re going to have to pay extra for hazard insurance.

Property Taxes

You need to find out what the taxes are in advance (they’re usually on the MLS listing), divide it by 12 and add it to your estimated monthly payment. Remember, the taxes are just going to keep going up — you could even get a tax increase in the first year you own your home — so make sure you have room left in the budget to account for higher taxes.

Utilities

When renting, many utility costs are covered or already rolled into your rent, such as trash removal and water, so you might not notice how much you spend on them monthly. When owning a home, make sure you budget beyond the utilities you’re accustomed to paying for, such as electricity, and think about costs you might not normally account for. If you are buying from a previous owner, you could always ask them what they paid on average for utilities to get an idea of what they might cost you month-to-month.

Maintenance

Owning a home also means you’re responsible for anything that breaks inside your home such as water heater, plumbing, etc. The cost for repairs will be coming out of your pocket. Maintenance costs will also include upkeep such as house cleaning, yard care, gutter cleaning, and pressure washing. According to the Harvard University Joint Center on Housing Studies, a good rule of thumb is to budget 1 to 2 percent of your home’s value each year for unexpected repairs.

HOA

If you’re part of a homeowner’s association, don’t forget to add these monthly dues to your mortgage payment when deciding how much you can afford. Neighborhoods that offer extra amenities or require a lot of communal upkeep will have higher HOA dues. HOA fees are mandatory and can range from a nominal fee, to a few hundred bucks, to upwards of $1,000, depending on the neighborhood in which you buy.

Furnishings

If you’re upgrading from a rented apartment to purchasing your own home, congrats! But keep in mind that extra space will likely mean shopping for extra pieces of furniture to fill that space. A one bedroom apartment probably won’t have enough furniture to fill a 3 bedroom house, especially if you were renting a furnished dwelling. Decorating your own home can be a blast and there are ways to shop affordably for home furnishings, but make sure to account for this extra cost.

We believe the benefits of homeownership far outweigh the costs, as long as you are prepared for the amount you’ll be paying at closing and on a monthly basis. Eagle Home Mortgage is here to help you stay informed, from realizing your dream of home ownership to starting the process & beyond.

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?