If you’re considering home ownership, here’s what you should know

 If you’re considering home ownership, here’s what you should know.

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Get prepared for the costs involved

Down payment

If you can put down at least 20% of the cost of the home, you could avoid having to pay costly private mortgage insurance (PMI).

Fees & expenses

You’ll need to keep some extra cash on hand for things like closing costs, moving expenses, etc.

Maintenance

Remember to put money into an emergency fund for unexpected repairs like a broken water heater, leaky faucet and general upkeep.

Down payment options

If you don’t have 20% to put down on a home, that doesn’t mean you can’t buy. You could qualify for a conventional mortgage with less than 20% down and pay PMI, or you can check into down payment assistance programs and FHA mortgage options.

Keep the benefits in mind

Creative control

Change the paint color, knock down a wall to open up the living area or build on an addition—it’s your home, and you’re the boss.

Tax benefits

It’s possible to save money on your taxes by deduction your interest payments come tax time. Talk with your tax professional for details.

Sweat equity

You can increase your home’s value with a little elbow grease and manual labor—something you can’t do with a rental.

Housing market risks

Keep in mind that you could lose equity based on several market conditions, including the economy overall. Before you buy, discuss potential risks with your lender or an advisor.

Close Disclaimer
The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.

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