3. Homeowners insurance.
Here's a quick estimate of what you might pay each month.
Private mortgage insurance (PMI). Almost all lenders require this insurance on purchases of homes when you put down less than 20% of the purchase price. They are merely protecting their interest in the other 80% or so of the purchase price.
…of course it also protects you. You will want to protect your investment. Consider buying the most comprehensive coverage you can and take the highest deductible you can afford to help minimize the cost.
Estimating your cost. You will want to shop around for the best quality and cost of insurance. But here's a suggested starting point.
Purchase
Price |
Monthly
Cost |
| $100,000 |
$40 |
| $200,000 |
$65 |
| $300,000 |
$110 |
| $400,000 |
$135 |
| $500,000 |
$160 |
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