Budgeting for Home Ownership
Here’s what to make room for in your homeowner’s budget.
- Principal and interest payment on your mortgage
- Real estate taxes
- Homeowners Insurance–ask insurance agent for an estimate
- Heat–check owner’s current bills
- Optional costs: water, sewer, trash collection, homeowners association dues
- Go to your home inspection, ask questions, and hold on to the report. Some repairs may be done by the seller. But some things may be future concerns, like a roof, furnace, or water heater. Inspectors can tell you when major components may need replacing. A furnace can last 12 to 15 years, a water heater, 10 to 12 years.
- Address all problems when they come up. A loose bathroom tile can be fixed for a few dollars. Ignore it and you’re rebuilding a wall. Set aside $500 to $1,000 a year for these small repairs.
- Estimate when you’d like upgrades done. Can you live with those kitchen countertops another two years, or another two months? When will you need a new deck? What about landscaping? Will you put on an addition down the road? Decide what you want, get rough estimates, and start putting money aside.
- Experts suggest homeowners have 1% to 3% of the purchase price of the home socked away for improvements and surprise expenses.
If you have any questions about this or any other part of the home buying, financing, or refinancing experience, please contact us today…and best wishes in this and all your endeavors!
Donna Holmer is a Branch Manager & Senior Loan Officer for Diamond Residential Mortgage Corporation in Merrillville, IN. Feel free to contact Donna at 219 682 4208 or email her at Donna.Holmer@TheDRMC.com.