What Affects Your FHA Mortgage Payment
But those are just two factors that can influence how much you pay each month. What are some of the others?
FHA Mortgage Insurance Premiums
Your FHA mortgage insurance premiums will affect how much you pay each month toward your FHA home loan.
Borrowers who choose to finance the FHA Up-Front Mortgage Insurance Premium or UFMIP should also expect an increase in their monthly mortgage payment as a result.
When you have a mortgage, your lender may require you to pay property taxes and related expenses using an escrow account. Any scheduled escrow payments should be included in your monthly mortgage budget.
Any expense related to using escrow may be worth it because you avoid late fees on payments otherwise; sometimes life gets in the way and the bills are late; you do NOT want to be late on property taxes. And on that note...
Property taxes are a standard part of owning a home, but it is easy to overlook this cost as a factor in your total mortgage expense among all the other home loan details you must contend with.
It’s smart to anticipate increases in your property taxes if you live in a housing market where they are more common; think Chicago, Illinois here as a good example.
Paying for Homeowners Insurance
Homeowner’s insurance is different from the FHA Mortgage Insurance Premium or MIP. Mortgage insurance protects the lender; your homeowner’s insurance is meant to protect the house and its contents. The two are completely separate in both coverage and cost.
Homeowners Association Fees or Condominium Fees
If you buy a home in today’s market, chances are good you will have to join a homeowner’s association or HOA. The same is true for those who want to buy condo units. These associations typically feature dues and fees that go toward the upkeep of common areas. Your HOA rules, bylaws, and dues are not standardized.
Each association has its own requirements. Some are more lenient than others, you’ll want to know the costs involved and any penalties for being late or missing payments.
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