Rossen Reports: Beware of these hidden costs before you buy a house.
A new study from Bankrate reveals all the costs you never consider when buying a house – like property taxes, homeowner’s insurance, and maintenance costs. The study found that the average price of maintaining a single-family home is $18,118 a year, on top of your monthly mortgage. That’s 26% higher than it was four years ago. What’s the takeaway for you? Chances are, buying a home will be the most significant financial decision you’ll ever make, so this will be major. Regarding repairs and maintenance, you should set aside 1% – 4% annually of your home’s total value. So, if your house is worth $600,000, you should set aside $24,000 annually. You should also have 3-6 months of emergency savings if you plan to buy a home. And remember, it’s recommended that your total debt payments, including housing payments, should never be more than 36% of your gross monthly income. Do you have a question for Jeff Rossen? He’s answering your consumer questions every Friday in the new segment “Rossen Responds.” Email your questions to him at RossenResponds@hearst.com.
A new study from Bankrate reveals all the costs you never consider when buying a house – like property taxes, homeowner’s insurance, and maintenance costs.
The study found that the average cost of maintaining a single-family home is $18,118 a year, on top of your monthly mortgage. That’s 26% higher than it was four years ago.
What’s the takeaway for you? Chances are, buying a home will be the biggest financial decision you’ll ever make, so this will be major.
Regarding repairs and maintenance, you should set aside 1% – 4% annually of your home’s total value. So, if your house is worth $600,000, you should set aside $24,000 annually.
You should also have 3-6 months of emergency savings if you plan to buy a home. And remember, it’s recommended that your total debt payments, including housing payments, should never be more than 36% of your gross monthly income.
Do you have a question for Jeff Rossen? He answers consumer questions every Friday in the new segment “Rossen Responds.” Email your questions to him at RossenResponds@hearst.com.
