In this way, the lender ensures that these important annual expenses are paid on time. If taxes and insurance are not put into an escrow account each month, the homeowner must be prepared to pay these bills when they come due. Lenders also view condominium and cooperative fees as belonging in this category of basic housing costs. You can determine the approximate cost of your PITI, or total monthly mortgage payment. These four figures should approximately total what your monthly mortgage payment will be.
Some people also choose to put money aside for a maintenance fund.
This money would be used to pay for unexpected repairs, like a broken water heater or a leaking roof. If you decide to set up such an account, add this to your monthly expense figures. Other costs of homeownership . First-time home buyers often are surprised by how costly basic upkeep is, both in terms of time and money. As we mentioned earlier, repairs often represent an unexpected expense.