Expenses Involved in Owning a House
8 October 2008
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A lot of house buyers, especially first time house buyers are quite shocked to find that giving the downpayment is not the only cash out requirement. Other expenses include application fees, background and credit checks on the borrower and prospective house inspection fee. Some banks, depending on the area, refer to the last three items mentioned as appraisal fee which is non refundable. Another expense is the closing fee which may or may not involve the following: prepaid interest or points, application and appraisal fees, recording and attorney’s fees, survey, title search and insurance, first month’s homeowner’s insurance, transfer taxes. There is also what we call the “operational cost” of owning a house. On top of your monthly amortization on the house itself, you have the basic utilities, property taxes, repairs and maintenance services like garbage disposal, shovelling snow, gardening and landscaping services.
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