Monthly Payments and How to Budget for Them

If you’re a renter looking to purchase a home, figuring out your budget can be a little tricky. Monthly payments, as you already know, are pretty straightforward. There’s typically just one number that you have to worry about. As a homeowner, however, you have to consider taxes and (if applicable) homeowners’ association fees. Luckily, EveryHome’s website has a nifty little tool called “See Closing Costs” under each individual house listed on our site. Here’s how it works:

                When you click the “See Closing Costs” link, a screen will pop up with a whole bunch of numbers. It can look confusing, but bear with me a moment. On the left hand side, alter the parameters to fit your needs (how much money you’d like to put down is the most important thing to consider). Then, the number at the very bottom right of the screen will reflect your estimated monthly payments. This total payment includes taxes and association fees.

It’s also important to account for any needed repairs and any changes in utility bills. Typically, utility bills will increase when you purchase a home so it’s a good idea to get an estimate beforehand. If you have your eye on a particular house, you can request the average monthly payments from the seller. If you’re just starting out, you can reach out to local utility companies for an estimate (of course, your EveryHome agent is happy to do this for you too!).

To get a sense of what you may be able to comfortably afford, consider checking out BankRate’s budgeting tool: http://www.bankrate.com/calculators/smart-spending/home-budget-plan-calculator.aspx