Your mortgage payments are only a fraction of what you'll pay out after you become a homeowner. The total? For this writer, $43,555 in four years, not counting house payments.
By Cameron Huddleston, Kiplinger.com
? Images.com/Corbis
* Kiplinger.com: Buying your first home
* Kiplinger.com: Don't rush into a new home
* Kiplinger.com: What your home is, and isn't
If you're entertaining thoughts of buying your first home now that the housing market is cooling off and prices are coming down, take note: The cost of home ownership might be a lot more than you think.
I'm not talking about the down payment or monthly mortgage payments. Although buying a home is a big investment, owning one comes with a new set of expenses you may not have had while renting or living with Mom and Dad. These extras can put a strain on your daily finances if you aren't prepared.
I know the temptation to buy a house can be strong, especially if you've been renting for a while, have gotten married or are ready to start a family. When my husband, Alex, and I moved to Kentucky four years ago from Washington, D.C., where we rented an apartment for six years, I couldn't wait to buy a house. Since then, we have sold our first home, bought our dream home (well, at least it will be after we do a lot of work on it) and learned plenty about how much it really costs to be homeowners.
So to help you estimate your own cost of ownership and come up with a realistic housing budget, I offer my experience as an example. Below, I itemize the expenses Alex and I have paid over the past four years, complete with dollar amounts. Your own costs will vary depending on the size, condition and location of the house, but this should help you anticipate what you're getting into. Homeownership comes with a bevy of benefits, but you'll want to make sure it's the right move for you at this point in your life before making that long-term commitment....
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