Taxes/Home Owners Insurance/HOA - Are part of the big picture
Most consumers think about their spending on a monthly basis…My car payment is $240 per month, my mobile phone costs me $99 per month and my mortgage cost $1,400 per month.
What are you paying when you are paying your Mortgage? At the minimum you are paying the principle and interest. But what about paying for Home Owners Insurance, Taxes and Home Owners Dues/Assessments? If you have a mortgage then the lender requires you to purchase Home Owners Insurance. Your local municipality requires that you pay your property taxes and if you live in community that is part of a Home Owners Association then you are required to pay HOA dues.
When you look at the total costs of home ownership then you need to factor in these additional items as part of your budget. Going back to my original point that most consumers think monthly, it might be difficult to think monthly when we pay our property taxes and insurance annually and our HOA fees quarterly and if we are thinking of buying a home these additional items might not always be available or easy to find.
At RatePlug we created technology and tools that uses lenders live rate information to give you an accurate principle and interest payment along with property taxes, HOA Dues and insurance estimates to figure out the monthly total cost of home ownership. This allows homebuyers to find properties they can truly afford by looking at the big picture of all of the necessary costs involved.
Mike Babincak, CTO