|Homeowners insurance – Again, the cost varies. Call insurance companies for more information, or contact the Florida Department of Insurance for surveys of prices for insurance rates.
Private mortgage insurance (PMI) – If your down payment is less than 20% of the purchase price, this can tack several hundred dollars each year to your loan costs until the equity in your home reaches 22%, when you no longer need the insurance.
Maintenance – Varies year to year, but you may spend about 1% of the purchase price annually on maintenance and repairs.
Closing costs – Include points and other fees charged by the lender, which can add up to 3% of the amount you borrow; title insurance, from a few hundred to over a thousand dollars, depending on the purchase price of your home; inspections, about $200 to $500; and other miscellaneous fees. Many of these costs are negotiable between the buyer and seller, and are dependent on local customs. You can also negotiate with the lender to reduce, and in some cases completely waive, certain costs.
Housing expense ratio
The “housing expense ratio” compares your monthly gross income to “PITI,” an acronym for:
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Expense List For Buying A HomeCarl J. Pinckney2019-05-07T06:23:48+04:00