Ownership Cost

Empower yourself with residential real estate ownership cost

Learn how to calculate how much house you can afford before hitting the pavement or starting your home search. Use our online calculator to determine how much house you can actually buy.

1. Mortgage Costs

Most buyers require a mortgage. Work with your C.A. Carter Group adviser to pinpoint your desired monthly payment, down payment and closing costs to determine the right mortgage for you. Today's most common mortgages include:

• Fixed Rate – These are conventional loans with fixed, stable interest rates for the life of the loan, usually 30 and 15-years.
• Adjustable Rate – Adjustable Rate Mortgages (ARMs) start with a low rate for a specific period, then fluctuate based on the market conditions. ARMs are better suited for borrowers who want to stay in their homes for shorter periods, such as eight years or less.
• FHA – The Federal Housing Authority (FHA) secures the loan, which is generated by a mortgage lender. FHA loans are helpful for many first time homebuyers as only a 3.5% down payment is required. Borrowers must pay mortgage insurance for their FHA loans.
• Jumbo – These loans are for buyers who must borrow more than conventional limits set by Fannie Mae and Freddie Mac. The interest rate and down payment requirements are generally higher because there is more risk to the lender.

2. Insurance

• Homeowners Insurance – You also need to insure the value of the home against fire, theft, flood etc. Shop around for the best price and remember this cost can go up each year, especially if you file a claim.
• Private Mortgage Insurance (PMI) – If you put down less than 20% on a mortgage, you'll need to pay PMI, which protects your lender against a potential default on the loan. PMI generally runs up to 0.75% of the loan amount, depending on your loan to value and credit score.

3. Property Taxes

Property taxes can significantly raise your monthly outlay and may slowly increase depending on a variety of factors. Typically, a home is taxed on its assessed value, which is an amount equal to a fraction of its appraised value. Our agents are knowledgeable about local property taxes in you desired neighborhood.

4. Utilities

Utility expenses are a given, especially water, gas and electricity – and don't forget your cable and Internet bills.

5. Upkeep and Upgrades

Homes require maintenance. Hiring outside help for cleaning, landscaping, restoration and handyman services are valuable and time saving but will add to monthly and yearly cost. Historic properties require contractors experienced with older homes. Our knowledge of historic properties and local contractors can help when hiring outside help. Email Carter Group Realtors for our list of preferred contractors.

Once you add these costs and use our online mortgage calculator, you may need to adjust your price range.

Pair yourself with Charlotte & Cabarrus residential real estate 5 star realtors and neighborhood experts. Carter Group Realtors is the best place for your local home buying and home selling needs.

Contact us today for help getting started.