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Long Island Real Estate & Finance
With David Finkel
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David Finkel works for
East Coast Capital in Syosset. Over the years he has
dealt with hundreds of clients. He understands what people
need and how to help them through the process of home ownership.
David has an extensive background in many areas in the field and his
goal is to help you achieve what you are seeking. Whether it
be a new home, or just advice to refinance, Dave Finkel is the man
to listen to. |
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ARTICLE
OF THE WEEK
Thursday,
June 7, 2007
Author: David Finkel, Real Estate Agent & Mortgage Professional
Can I Afford a Home?
The most important part of buying a
home is being able to pay all of your bills. People fall in love
with a property and lose sight of what all the costs of owning a
home entail. Besides paying the mortgage, taxes, and insurance there
are additional expenses that a home owner will incur.
The first expense a homeowner will have is called PITI. This stands
for the Principal, Interest, Taxes, and Insurance. The principal
amount and interest you will be paying will depend on the amount of
the mortgage you have. The higher the mortgage amount the higher
your payment will be. In future articles I will discuss the
different mortgage programs that are available. The taxes will
depend on the town you live in, the size of the property and home,
swimming pool, central air and vacuum. Taxes usually go up every
year and you should see what the percentage increase has been in the
neighborhood you are looking at. If the taxes have been going up
five percent each year and you are starting at seven thousand, then
in year two you taxes will increase $350 dollars. Insurance is
necessary and the cost is dependent on many factors. Most banks
require that you pay the first year premium prior to closing.
Some people say that owning a home is a money pit. You are always
fixing something. If you don’t fix the minor problems they will
become major and expensive problems. Roofs, boilers, and water
heaters will need to be replaced or fixed. You can get service
contracts but those costs hundreds of dollars every year. Gas and
electric are major expenses of owning a home. I estimate the average
home costs $400 a month to turn on the lights, heat, and cool a
home. It will cost at least $100 a month to have a landscaper.
This article was intended to enlighten potential homeowners on the
cost of ownership. I feel that owning a home is wonderful lifestyle
and a great investment. History has shown that over time home values
increase. The biggest mistake a potential homeowner can make is
buying a home that they can’t afford. It is better to start small
and move up when your financial situation will allow.
- David Finkel
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