Budgeting For New Homeowners: Tips from the Experts
March 1, 2023
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.
This article originally appeared on Inspection Support Network. Read the full article here.