Intro to Housing
Even More Hidden Costs of Owning a Home
You mentioned another type of insurance I could have to budget for—private mortgage insurance. What is that?
Known as PMI, private mortgage insurance is a separate insurance policy that the bank may require you to take out if your down payment is less than 20 percent of the price you pay for the home.
How much should you budget for maintenance costs?
$1,500 per year
$3,000 per year
One percent of the home’s value per year
Three percent of the home’s value per year
How is buying a condo different than buying a house?
There are no maintenance costs
There are no tax benefits
You may have to join a homeowners association
There are different down payment requirements