For the average person, buying a home is likely to be the most significant expense they will ever have to deal with. Today the prospective home buyer can expect to shell out an average of $40k in what arereferred to as “one-time” fees according to the latest reports published by Real Estate.com. It’s not just about the mortgage payment; thereis so much more to consider.
The problem for most home buyers is that they tend to hyper-focus on the list price of the home they are considering buying and their expected monthly mortgage payments. This leaves them not thinking about several costly and significant one-time charges, but they need to not only be aware of them, but they also need to have the money available to take care of these costs. In other words, if you are in the market for a home, not only do you need to have the required down payment, but enough cash set aside to cover the one-time closing costs, any project that needsto be taken care before and after moving, and any actual moving costs.
Breaking these costs down into a little more detail will help you to understand the “additional” costs of buying a new home. The single largestexpense you will have to faceis your down payment. The average downpayment today is 15 percent of the mortgaged amount. If you are buying a home for $250.000, a 15 percent down payment would be $37,500.
City | Median Home Value | 15% Down Payment | Closing Costs | Moving Costs | One-Time Costs |
San Diego | $584,100 | $87,615 | $7,674 | $1,150 | $96,439 |
As anyone who has ever purchased a home knows, there is a lot of stress involved in buying a home. One way to help keep the level of anxietydown to a more manageable levelis to know exactlywhat your closing costs and one-time fees are going to be and to make sure you have the money set aside to pay them.
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