Most first time home buyers in Reno think that their mortgage is their biggest expense. But, buying a home is not only about the monthly mortgage or the twenty percent down payment.
You must be aware of the hidden cost of purchasing a home if you are one of the first time home buyers in Reno.
Mortgage Interest Rate
The mortgage interest rate can vary, depending on differrent factors. This could include your income, credit score, or the amount of your existing debt. But, the current average mortgage interest rate in the state of Nevada is at 3.85 percent. If you buy a home that costs $279,000, youll have to pay an annual interest rate of $9,971.50 for your mortgage loan. Thats a lot of money!
Your home is one of the most valuable possessions youll ever have, so it makes sense to pay for home insurance. This insurance covers damage from storms, vandalism, fire, and theft.
Home insurance in Reno costs around $550 to $750 every year. Thats around $45 to $62 a month. Its definitely a significant part of the house expenses list.
Property tax is one of the hidden costs of owning a home. The property tax in Reno as of 2015 is $3.66 for every 100 dollars of the home value. This means that if your home costs $300,000, youll have to pay $10,980 property tax every year. Thats money that you can spend on a one week Europe tour!
Are you one of the first time home buyers in Reno? Then, you should include physical maintenance in your total home cost. You need to set aside money for regular maintenance. This includes house cleaning and minor repairs. You may need to hire a plumber every now and then. An average homeowner spends around three thousand dollars in maintenance each year.
When youre renting a home, you dont need to buy a lot of stuff. But, if you own a home in Reno, youd most likely invest a lot of money in high quality furniture. A sofa set costs $1000 and a bed would cost around $400. Youd also need to buy a couple of appliances which may cost up to $1500 or even more.
Most houses in Reno have a spacious lot area so lawn care is one of the common hidden cost of home ownership. Of course, you can avoid this by doing the yard work yourself. But, if youre busy, you can always hire someone else to do the job for you. Besides, lawn equipment usually costs around $290, so if you dont need to do it often, you might can more money by getting someone else for this task.
A qualified home inspector needs to examine the condition of the house. They would often recommend repairs, should they find that it is needed. Their home inspection fee is something you have to pay up front when purchasing a home. It costs around three hundred to five hundred dollars and its one of the bills to pay when owning a house.
Old houses are usually cheaper than the actual home cost. But, buying a 20 year old house can mean huge repair and renovation costs. You must consider the possible renovation cost when deciding to buy an older home. If you pay thousands of dollars to repair an old $150,000 home, it might be a better idea to just go with a brand new $200,000 house.
Buying a house is one of the most significant milestones in your life. But, before you make the decision, you must also be aware of the hidden costs associated with owning a house. You must follow these tips.
Study the pricing trends before you buy a home.
Check the property tax in the area you want to live in.
Youll save money if you buy a resale home. But, if you dont want to pay up front for repairs and renovation, consider buying a brand new home. If you decide to buy an old home, make sure to set aside a few thousands of dollars for repairs.
Get help from a loan officer to avail of great financing programs.
If youre one of the hundreds of first time home buyers in Reno, Jill Reid from Fairway Independent Mortgage, can help you with a variety of mortgage related matters, including mortgage planning, in Reno, Carson City, Dayton, and Gardnerville.
She has been in the real estate industry for almost 30 years. She helps home buyers find funds to cover hidden costs of purchasing a house.
Watch the video below to find out more about Jill Reid:
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