What are the other expenses included with monthly mortgage?

The age-old debate continues: is renting just throwing money away when you could be building equity by owning a house? In Dallas, TX, where the average monthly rent for a modest two-bedroom, two-bathroom apartment with around 1100 square feet hovers at $2100, the question becomes even more pertinent. But is homeownership really the financial panacea it's often made out to be? Lets find out.

5 Things you should know before you buy a house. (which you don't care when you rent)

  1. Current interest rate, without knowing that you cannot calculate your EMI.
  2. Property tax of that home. (if there are more than one city is involved it will be much higher)
  3. Home Owners Association fee (HOA).
  4. Home Insurance. Vary based on the zone esp in TX you can't escape Hail.
  5. School rating which is also used to measure your neighborhood safety.

Now lets see an approximate estimate of the additional expenses that one should be aware of, I split them in to two

  • Monthly expected expenses
  • Unexpected expenses

Monthly additional expenses (The below monthly expense is based on Q2 2023 in North Texas for a family of 2 adults and 2 kids)

  • Home insurance $200
  • Extra Curricular $575 (optional)
  • Lawn moving $30
  • SEWAGE $30
  • Water $105
  • Electricity $200
  • Internet $80
  • Phone $120
  • Gas $270
  • Term insurance $76
  • Auto insurance $182
  • Car Loan $670
  • Groceries $700
  • Movie $150
  • Restaurant & Bar $300
  • Total $3,688

Monthly unexpected expenses

  • Air condition
  • Water heater
  • Dish washer
  • Plumbing
  • Roof

Owning a home can be a fulfilling experience, but it comes with a hefty price tag beyond the down payment. Understanding these hidden costs is key to making an informed decision about your financial future. So, before you take the plunge into homeownership, crunch the numbers, consider the variables, and make sure you’re truly ready for the commitment. Your dream home might be waiting, but being financially prepared is the first step toward turning that dream into reality.

Your dream home awaits, but financial preparedness is key.

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