![]() ![]() Outdoor cleaning, including cleaning the guttersĪ commonly used rule of thumb for home maintenance is to budget 1% to 3% of the home's purchase price each year for basic upkeep.Replacing smoke alarms and carbon monoxide detectors.Home maintenance expenses can cover a variety of things, including: One of the most significant costs of owning a home you'll need to plan for is maintenance. Other home-related services include garbage collection, recycling pickup, internet, and cell service. What you might pay for utilities can depend on which of these services your home uses: Utility services are necessary, so it's important to factor those expenses into your list of house bills. Meanwhile, Alabama, Louisiana and Wyoming have the lowest property tax rates. States with the highest average property tax bills by tax rate include New Jersey, Illinois and New Hampshire. The amount you pay in property taxes depends on where you live and the property tax rate for that area. For example, you might get a property tax bill from your county tax assessor each year. State and local government entities typically issue property tax bills. Property taxes are costs you pay to own a home or land. The average homeowner's insurance premium is $1,272 annually. Homeowners insurance also provides liability coverage if someone becomes injured on your property. You may also purchase optional coverage for floods and other hazards. If your property is damaged, a homeowner's policy can pay for covered perils, such as fire or theft. Homeowner's insurance is one of the most important house bills to plan for because it's designed to protect your investment in your house. The lender holds the money in an impound or escrow account and pays your taxes and insurance premiums as they come due. ![]() Many lenders require you to pay your property taxes and insurance with your mortgage payment. Mortgage insurance is something you might have to pay if you put down less than 20% on the home. The principal is the amount you borrowed to buy the home, while interest is what the lender charges you to borrow. Mortgage lenders refer to this payment as PITI (principal, interest, taxes, insurance). A typical mortgage term is 30 years, meaning 360 monthly payments.įor many homeowners, a mortgage payment includes four things: A mortgage is a loan secured by the home you plan to buy. Unless you have the cash to buy a home, a mortgage will likely be the largest of your house bills. Making a list of bills to pay can help you decide if homeownership is in your budget. But there are other house bills you'll also be responsible for paying. You'll have to pay the mortgage each month, of course. Before you buy, however, it's essential to understand the costs of owning a home. Buying a house could be a good move financially if it turns out to be cheaper than renting. ![]()
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