Monday, May 07, 2007 12:15 PM
How much do I need?
How much do I need for a house?
The exact amount varies, but here are the major costs you should anticipate:
? A 5% to 20% down payment (anything less than 20% and you?ll have to pay insurance). For a co-op apartment, you may need to put down a higher percentage for a down payment.
? Closing costs, which are roughly 3% of the price of your home
? Mortgage payments
? Inspection fees
? Any unforeseen repairs that the seller does not cover
Also, keep an emergency reserve of three to six months' of your annual income for unexpected issues that come up (for instance, if one of you should suddenly become unemployed). It?s also smart to put 1% of your home?s value in a CD or money market account in case of emergency -- say, for example, if the boiler bursts or the roof needs repair.
Posted by
The Nest Editors
Filed under: Fees