Closing CostsOften closing costs range between 2% and 5% of the purchase price of your home. Lenders are required to provide you with a Good Faith Estimate (GFE) outlining your closing costs within 3 days of applying for a mortgage. If you don’t have enough saved for these, they can also be listed as ‘seller’s concessions’ in a purchase offer contract. Ask us for more details on how to do this.
Private Mortgage Insurance (PMI)This is usually required when your down payment or equity in your home is less than 20% of the appraised value or sale price, and is often required for FHA loans. Watch your mortgage principle and be sure to cancel your PMI once your loan-to-value ratio reaches 80%
Property TaxesThese can be included in your mortgage payment through an escrow account from your lender. In our area there are 3 types of property tax: (1) Town and County Property Taxes are based on your property's assessed value and the tax rate of the Town and County your property is in. These are paid annually at the end of January, (2) City or Village Property Taxes are based on your property's assessed value if it is located within a city or village limit and the tax rate of the city or village your property is in. These are paid annually at the end of January, (3) School Taxes are based on your property's assessed value and the tax rate of the school district your property is inyour property's assessed value. These are paid annually at the end of September.
Homeowner’s Insurance typically pays for the structures ob your property and contents of your home if they were damaged or destroyed by fire, wind or theft. It also covers your liability if someone is injured in your home or on your property. Rates can vary significantly between insurance companies so it is important to shop around.
Flood Insurance Regular homeowner's insurance policies don't cover flood water damage. If required, flood insurance costs should be provided on the Property Information Disclosure, and can also be verified with your insurance company.
