Buying And Financing A House Essay

1078 Words Apr 6th, 2016 null Page
When buying and financing a house, you will be required to pay homeowners insurance until your loan is paid off. But what many homebuyers don 't always think about prior to putting a contract on a home is how much that homeowners insurance will cost. The cost of your homeowners insurance is usually split up and paid monthly along with your mortgage payment. Therefore, if you didn 't anticipate those extra costs, which could also include your property taxes and perhaps property mortgage insurance (PMI), if you didn 't put 20 percent down, then you might have just priced yourself out of that home because now you can 't afford the monthly payments. It 's extremely important to ask the question "how much is home insurance" before committing to any home.
Once you 've answered the question "how much is home insurance" and have estimated the approximate property taxes and whether or not you will have to pay PMI, then you will know how much house you can afford. This will help you avoid putting a contract on a house only to find out later that with the added fees you can 't afford the monthly payments. So let 's talk about homeowners insurance, including how much it costs, as well as a few other things you really need to know before you get started.
How Much Is Home Insurance?
One thing you need to be aware of before you buy a house is that your homeowners insurance and your property taxes for that matter could increase every year. That means your monthly mortgage payments will…

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