How Much Money Should I Save Before Buying a House?

The following discussion breaks down the many different costs so you can work out the total sum you’ll need leaping into the property market.

Private Mortgage Insurance

You’ll need to check with your lender to see what options they offer, but you’ll likely pay for this unless you can afford to put 20% down in cash.

These fees cover the cost of the closing paperwork for the property. They also include legal fees, title searches, surveys, etc.

Closing Costs

The initial money you put toward the purchase. This amount varies depending on the loan type and interest rate.

Initial  Down Payment

Some loans require mortgage insurance premiums. These may be paid once per month and protect the lender and owner from damage to the property.

Homeowners Insurance Premiums

Property Taxes

Property taxes can range anywhere from 0%-10% or even more, based on where you live and the home’s assessed value.

Homeowner Association Fees

Homes within communities often come with homeowner association fees. These fees go toward maintenance of common areas, landscaping, security, etc.

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Money Saved Is Money Earned!