What is the true cost of Home-ownership?

Dated: 08/28/2018

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As a homeowner you will have to make your mortgage payments, which include more than just the principal and interest on the loan.  

PI - Principal and Interest

TI - Taxes and Insurance

MI - Mortgage Insurance (PMI/MIP)

Homeowners Association (HOA)

*If you buy a condo, townhome, or a single family home within a neighborhood that has an HOA,, you will need to pay a fee to that association for services like common area maintenance, parks, lighting, trash, etc.  This is usually monthly, but can sometimes be payable quarterly or yearly. 

Taxes/Insurance: will change

You should always anticipate that your payment will change, even if you have a fixed rate mortgage.  Principal and interest payments will remain the same for the life of the loan on a fixed rate loan, but taxes and insurance are reevaluated once a year.  Depending on the circumstances, these may go down, but it is best to expect an increase in payments, resulting in an increase in your mortgage payment.

Increase in housing expenses:

Increases in housing expenses are inevitable so you should evaluate whether you are ready for homeownership.  If you are experiencing trouble paying your current bills, you might want to reconsider if homeownership is right for you.    

I would be happy to speak with you over the phone or in person and answer any questions you have with regards to being a first time homeowner!

I am here to help!!  - JeniVO

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Jeni VanOrnum

Hello! My name is Jeni. As a Colorado native, I am proud to say that I know the Colorado Real Estate market very well. I have enjoyed an extensive & rewarding career in Real Estate for over twenty ye....

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What is the true cost of Home-ownership?

As a homeowner you will have to make your mortgage payments, which include more than just the principal and interest on the loan.  PI - Principal and InterestTI - Taxes and InsuranceMI -

Read More