Hidden Costs of Home Ownership

Planning on buying a home? There are additional hidden costs to consider when planning a home budget after your purchase.

Here is my three part video series to help you plan for some of the hidden costs of home ownership.

Part One: Home Maintenance

You need a budget to plan for home maintenance. A good rule of thumb is to plan for 1% of the purchase price of the home in your first year, and each year to follow. You can also look at your inspection report of the property to plan for future repair, updates, or replacement and plan accordingly.

Part Two: Energy Efficiency

Do you have older appliances, older windows, and doors? Do you have an older HVAC unit? Do you have insufficient insulation? These things can be energy draining and cost money. By replacing older appliances and the HVAC with energy efficient ones, it is good for the wallet and the environment.

Part Three: Your Mortgage Payment May Increase

Your mortgage payment will likely go up. Whenever your property taxes increase or your insurance rate goes up, your mortgage payment will change. Since your mortgage payment is made up of the principal, the interest, the property taxes, and insurance, your mortgage company will contact you when there is a change.