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RESOURCES
• Agents in real estate
• The deal in mortgaging
• Hidden Cost in mortgaging –
Plan for your finance
• Mortgaging or Rent – vital decision
• Refinance - The competitive market
• Plan your finance – mortgaging is an
additional burden
• Borrowing in Real Estate
• Mortgaging Jargons
• The Fundamental Needs
RELATED LINKS
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Hidden Cost in Mortgaging – Plan for your inance
The common perception goes while mortgaging a real estate property that you need to pay only the value of the property, which is the sale price. In reality, there are several other costs associated with any real estate property, which may bring a phenomenal change in your home finance requirement. Let us try to discuss some of them.
In most of the countries, property taxes are applicable to all real estates and it is charged from the existing owner. What you need to do is to look for the Tax position of the property. Investigate whether the seller has paid the tax up-to-date. Don’t worry! You can personally visit the tax offices or your agent can also fetch the updated information for you. The caution is you need to take the onus of all pending taxes once the deal winds up.
The association fees are also levied in some countries like US. The calculation is also simple. Sum total of the Title Insurance, Sales Fees and State Documents Stamps is levied upon the new owner. Generally the association fees become .0035 times of the above sum in case of an old real estate and .002 times in case of a new mortgaging.
The attorney fees also amount significantly in some countries. This cost is applicable from case to case basis and primarily depends upon the mutual agreement of the buyer and the seller or their respective agents.
Home Warranty and Insurance Fees will also contribute considerably towards contributing to your financing needs. Last but not the least! Don’t forget to keep some budget for repairing and maintenance or decoration, as one does not opt for real estate everyday!.
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