Considering Your Cost of Living

Posted by Shanna on Feb 15, 2011 in Blog, Buying Real Estate, Real Estate Lending | 0 comments

When buying a home there are other monthly costs involved beyond just the mortgage payment.  Here are some of the costs to take into consideration when budgeting for a house in Columbus. 

1. House Mortgage

This is going to be your main chuck of expense for your monthly and yearly cost of living, the principal and interest on the mortgage of the house. 

2. Property Taxes

Most people escrow their property taxes with their mortgage company, which means that you pay your taxes monthly with your mortgage payment and then the mortgage company pays the bill when it comes from the county. If you look at a good faith estimate from a lender, there will normally be a line item for property taxes.  The good news is, property tax payments are usually tax-deductible.

3. Ongoing Maintenance

Once you buy a house it seems that the maintenance is never ending.  Grass needs mowed, roofs need replaced, air filters need changed.  While you aren’t paying for big maintenance like replacing a roof, a new furnace, painting a house, or replacing a deck every month, you need to consider these costs within your yearly budget to make sure you have funds set aside when the time comes.


4. Utilities

Gas, electric, water, sewage and trash are all going to be added costs in addition to your mortgage.  Most people also add Internet, cable or satellite and home phone. One way of estimating some of these costs are to ask the current homeowner their utility averages. 

5. Insurance

Depending on whether you buy a condo or a free standing home will depend on what type of insurance you are required to carry.  When you buy a condo, the hazard insurance is including in your condo fee, but the condo association will require you to pay for condo insurance, similar to rental insurance, except it covers the inside of your condo in case of damage.  A lender will require hazard insurance on a house.  The cost of your insurance will depend on the cost of the house and your contents.  Expect anywhere from a few hundred to a few thousand dollars a year for home insurance.

Shanna Lafontaine is a Realtor who works the Dublin, Hilliard, Powell, Worthington, and surrounding Columbus areas helping both Buyers and Sellers

Shanna Lafontaine is a Realtor with RE/MAX Affiliates who works the Dublin, Hilliard, Powell, Worthington, Westerville, Delaware and surrounding Columbus areas helping both Buyers and Sellers.