When you buy a home, the mortgage payment isn’t the only regular expense you will have to consider. You will also be responsible for paying for your homeowner’s insurance policy as well as the property taxes on your new home. There are two ways to go about this. One is to roll them both into your mortgage payment, and pay them monthly along with your mortgage. The other is to pay them on your own. Larger Monthly Payments Adding your insurance and property taxes to that monthly mortgage payment bill means that you will have a higher monthly payment. If you are already cutting it close on your monthly budget with the mortgage alone, this could make it tougher. You should keep these two payments in mind when you make up your home buying budget so that you know what you can really afford after paying both of these monthly expenses. Lump Sum Payments Both property taxes and homeowner’s insurance can be paid on their own directly. This is usually either a yearly payment of a large lump sum or a different sort of payment plan set up by the insurance company or the county. Coming up with all of […]
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