Question Details

Chris, Home Buyer in Royal Oak, MI

How to determine total cost of homeownership mortg, ins, taxes, AND utilities BEFORE making an offer?

Asked by Chris, Royal Oak, MI Wed Oct 10, 2007

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Your lender and/or your Realtor should be able to put together a pretty clear picture of what the total cost of homeownership will look like. They should also be able to calculate your tax savings to privide a truer picture of the advantages of owning a home.
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0 votes Thank Flag Link Wed Oct 10, 2007
Cindi Hagley…, Real Estate Pro in San Ramon, CA
Hi Chris:

This will depend on how much you plan on putting down and what type of interest you qualify for.

To get a rough estimate of your monthly costs you can use a mortgage calculator:…

Then take the taxes of the property in question (which are available with the listing. If it's a FSBO, you can research the property on your local treasurer's website) and divide by 12, plus a safe average for homeowner's insurance for the type of home you are considering and divide by 12 (again, this varies far too much to give you an average here. You would be best off consulting an insurance agent to get a quote). Finally, to determine utilities, your Realtor can inquire on your behalf the average monthly heating/cooling bills for the property in question.

Add it all together and voila! Your estimated monthly operating costs.

Sorry to be so vague, but if you can fill in the blanks, this is how you can determine a pretty good rough estimate.
0 votes Thank Flag Link Wed Oct 10, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
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