Budgeting For New Homeowners: Tips from the Experts

What’s your best advice for budgeting for a new home?

The general rule of thumb is that homeowners should spend 28% or less of their monthly gross income on their mortgage payment, and this includes the principal, interest, taxes, and insurance. But there are other costs that homeowners—especially first-time homeowners—should factor in before they determine their budget. Moving costs, closing costs, home repairs, and big-ticket furniture purchases are going to add up, and homeowners should expect to spend 2% of the home value on annual maintenance. Include these expenses in your bottom line before deciding on your budget to avoid getting in over your head.

– Hometap

This article originally appeared on Inspection Support Network. Read the full article here.