Realities and Myths of Owning a Home

Myth: The Down Payment is the Only Upfront Cost

3. Myth: The Down Payment is the Only Upfront Cost

If you are able to secure a mortgage for your new home with little or no down payment, you may still be required to have some savings set aside for ancillary costs. Expenses associated with closing on the transaction, which can include prepaid interest, a portion of your property taxes, insurance premiums, and fees charged by your lender or title attorney, are all due before you get the keys to your new home. In addition to closing costs, you should also be prepared to pay for moving, new furnishings, minor home repairs or updates, and a new major appliance or two.

Advertisement - Scroll To Continue

Loading...