| As long as you know how many years you | | | | property taxes. For this reason, the |
| will be paying your mortgage, the | | | | lender will collect money from you every |
| interest rate of the mortgage and how | | | | month to be used to pay your property |
| much money you will be borrowing, you | | | | taxes. |
| can easily calculate a mortgage payment. | | | | You can figure your yearly property tax |
| The only problem is you will only find | | | | will cost you at least, 1 to 2% of the |
| out how much principle and interest you | | | | worth of your home. So, on a $240,000 |
| will be paying each month. | | | | property, you can guess you will be |
| Unfortunately, there is a lot more | | | | paying $2,400 to $4,800 a year. This |
| involved in a monthly house payment than | | | | calculates to $200 to $400 a month. |
| principle and interest. It is these | | | | This amount will depend upon where you |
| extras that can make the difference | | | | live. You should be familiar with a |
| between making mortgage payments with | | | | town's mill rate before you buy a home |
| ease, and foreclosure. | | | | there. Your homeowner's policy will cost |
| In this article you will find out how to | | | | about $700 to $1,000 a year, so you can |
| calculate a mortgage payment the right | | | | figure around $75 a month for this |
| way, in its entirety. By doing this, you | | | | expense. |
| will borrow an amount of money you will | | | | Water and Sewer |
| be able to pay back without stress. This | | | | Another pair of monthly housing expenses |
| will make it easier to budget your money | | | | are water and sewer. If you live in the |
| without fear of getting behind on your | | | | city, this is a classic case where they |
| payments. | | | | get you coming and going. City water |
| Principal and Interest are the Starting | | | | will easily cost you $50 a month and the |
| Point | | | | sewer, which is just another word for |
| $100,000 financed for 30 years at 7% | | | | tax, will cost you, in some cities, |
| requires a mortgage payment of $665.30. | | | | about $1,000 a year, which figures out |
| Knowing this in today's market gives you | | | | to $85 a month. |
| a heads up when you need to quickly | | | | If you live out of the city, your water |
| estimate a mortgage payment. Of course, | | | | and sewer charges become the cost of the |
| the mortgage payment you will be | | | | upkeep of your well and septic system. |
| estimating will be the interest and | | | | However, after all is said and done, one |
| principle only. This is the starting | | | | problem with either one of these things |
| ground from which your monthly house | | | | will cost you an amount that will be |
| payment will be calculated. | | | | close to what the cost is for city water |
| For simplicity's sake, we will say you | | | | and sewer. |
| are thinking of buying a home where you | | | | These costs will come at much larger |
| will need a mortgage of $200,000 and the | | | | intervals than a monthly expense but |
| going interest rate is 7% and, like | | | | they will be much greater amounts. In |
| almost everyone else, you will be | | | | other words, it all evens up in the long |
| financing for 30 years. This means your | | | | run. Or should I say it all comes out in |
| principle and interest payment will be 2 | | | | the wash? |
| times $665.30 or, $1,330.60 a month. | | | | Your Payment is Bigger Than the |
| Now, what else will be added to this | | | | Calculator Told You |
| amount each month? | | | | The end of the story is, to pay this |
| Taxes and Insurance | | | | $200,000 mortgage; you will need to pay |
| Most lenders make sure you have | | | | $1,330 a month for interest and |
| homeowner's insurance. They will also | | | | principal. Plus, you will be paying, |
| see to it you pay your property taxes. | | | | let's say, $300 a month property taxes |
| They do this, not so much because they | | | | and $85 a month for homeowner's |
| are nice guys, but because they don't | | | | insurance. So far, this amounts to |
| want somebody else to take your property | | | | $1,710 monthly. Then add $50 for water |
| away from them. How could this happen? | | | | and $85 for sewer and you will come up |
| If someone got hurt on your property and | | | | with $1,850 a month for your real |
| successfully sewed you, they could take | | | | mortgage payment. |
| everything you had, including your | | | | Of course, there are more expenses |
| house. This would give your lender a | | | | required to live, but taxes and |
| legal burden they wouldn't want or need. | | | | insurance, along with water and sewer |
| To prevent this from happening, the | | | | are things that people who rent don't |
| lender usually collects money from you | | | | ordinarily pay. It is knowing about |
| each month to pay for your homeowner's | | | | these expenses in advance that is the |
| policy. This way you and they will be | | | | key to realizing you could be |
| protected against this kind of suit. | | | | overextending yourself financially thus, |
| Another entity that could fight your | | | | risking foreclosure. So, be sure to |
| lender for ownership of your house is | | | | calculate your complete monthly mortgage |
| the local government and this is exactly | | | | payment before you say, "I'll take it! |
| what they will do if you default on your | | | | |