Hidden Costs Of Homeownership As Told By Loan Love's New Article

PR Newswire

SAN DIEGO, May 14, 2014 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. The latest in Loan Love articles includes a new guide to helping readers spot out the hidden costs of homeownership titled "Home Ownership Costs (Don't Let Them Sneak Up On You)."

One of the few fatal mistakes a new home buyer can make is only looking at the costs of a loan's interest rates while neglecting other expenses. Loan Love's new article makes this clear by saying: "Home owners typically focus on principal, interest, taxes and insurance, if they look beyond principal and interest at all. Unfortunately, it is fairly common to overlook many of the other costs of buying and maintaining a new home, whether you build or find an existing house to call your own.

Some home ownership costs will pop up as you securing financing and close on your home, while others won't become evident until well after you move in. Regardless of what category these costs fall into, it's important to go into home ownership with your eyes wide open and with a thorough knowledge of the true costs of becoming a home owner."

The article then goes on to list some of the hidden expenses home ownership can bring – and how they may be resolved. There are a few things home owner should either look over when mitigating additional homeownership costs, which the Loan Love article lists as the following:

  • Closing Costs
  • Private Mortgage Insurance
  • Home Owners Insurance
  • Property Taxes
  • Ongoing Maintenance And Repairs
  • Furniture and Decorating

For example, a forewarning that article gives to home buyers is that closing costs may differ from house to house. The list for closing costs can usually range from many things, from appraisal to title insurance fees which can run up to about 2 to 5 percent of the home's purchase price. There is also the task of refurbishing the home with furniture and decoration. If the home buyer doesn't already have furniture to add, or simply wants to make adjustments to the scenery of their abode, they may have to factor these costs in as well. On the topic of home owners insurance, the article suggests:

"You are not going to be able to secure a home loan without evidence of a home owners insurance policy. Keep in mind, however, that a basic policy likely doesn't cover every natural disaster that could strike. Ask your insurance agent to discuss your policy with you in detail.

You may need to add a rider to your policy if you have a lot of valuable art, jewelry or similar items. You may also want to consider adding supplemental insurance to cover damage by floods, hurricanes, tornadoes or earthquakes if you live in areas prone to these natural disasters and your policy does not already provide coverage."

For more information on the hidden costs of homeownership, please visit LoanLove.com for the complete article.

Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, contact@loanlove.com

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