Types of Payments you will be making after you buy a House/Land:
- One time Property cost/down-payment:
3% - 100% (depends on how much you want to pay upfront) - Minimum downpayment conditions:
0% - VA Loan; if you are/were in US defense forces and are going to live in the house you buy
3.5% - FHA Loan; sponsored by US govt as the lender for houses that are in good condition
3% - Conventional Loan through any lender; house has to be in "OK" condition - Monthly Property mortgage payment
(if you buy the property on a loan and did not buy it on a 100% down-payment):
Varies depending on your loan payment plan
Monthly amount = Partial payments of principal & loan interest. (HOA and Insurance are on case-by-case basis). - Yearly Mortgage/Loan interest:
3.1% - 8% (Depends on your credit history and credit score) - One time Cost to build/repair the house:
0% - x% (if you are buying a lot/land/fixer upper) - Yearly Property Tax:
1.00% - 1.25% of the assessed value (normally 20-50% of actual selling price) - Yearly House Insurance (If you buy a house on a loan at <20% downpayment):
0.5% (this is lower for FHA loans) - Monthly Homeowner's Association (HOA) Fee (If you are buying a house in an HOA/gated/closed community which has amenities/facilities provided):
~0.2% (Yearly = ~2.5%) - Yearly Personal House Maintenance and Cleaning (Lawn, Plumbing, Pest control, etc.) cost:
0.1%
Other Types of fees associated with buying any property in the US:
- Lender's origination fee.
- Deposit verification fees.
- Attorney's fees.
- The appraisal fee and any inspection fees.
- Lender's origination fee.
- Cost of title insurance and title examination.
- Document preparation (by a third party).
- Property survey.
- Credit reports (actual costs).
- Transfer stamps, recording fees, and taxes.
- Test and certification fees.
- Home inspection fees
Important Conclusions for Homeowners / Buyers / Realtors:
- In addition to paying for the actual cost (100%) of the house/land, you will be paying an additional 5% - 10% cost of ownership per year.
- This means that the total cost of the house/land for you (the owner) doubles every 6 - 12 years (after adding 1% - 2% inflation).
- This means that no matter which house/land you are looking to buy right now, money put into it will double in (at the most) 12 years because of the yearly cost of ownership to the previous owner.
- If you buy the house/land in full, at 100% downpayment at no loans, in a non-HOA community; the yearly cost of ownership to you is ONLY 1.3% - 1.55% (after adding inflation).
Note: It took 5 hours to write this article.