Consult with an accountant toĭetermine what your tax rate will be and whether you ought to take the standard deduction instead. If you are itemizing deductions on your tax return, then you will probably be able to deduct mortgage interest and property taxes. Money spent on some improvements (particularly those that permanently increase the value) may actually be tax deductible when selling the home, so keep receipts.Ī rule of thumb for the annual cost of maintenance and improvements is 1% of the purchase price (according to Home Buying for Dummies). Improvements: Although you might not spend this amount each year, improvements such as roof replacements, remodeling, additions, etc. When selling your house, maintenance costs are not tax deductible. Maintenance: This includes repairs such as fixing plumbing, painting, or paying to have your lawn mowed and weeds pulled. Many lenders require PMI when down payments are less than 20 percent of the purchase price. The annual cost of homeowners insurance is often estimated as a percentage of the property value, averaging about 0.4%. This type of insurance is meant to cover the dwelling, personal property, The average is around 1.8%, but you should call your Tax Collector's office in the city where you plan to buy the home for more information. Home Expenses Included in the Calculator Property TaxesĪnnual property taxes are often based on a percentage of the property value. For other online calculators, see the list of references at the bottom of this page. If you have any questions about how to use the spreadsheet, please contact us. You can also read more about some of the specific expenses resulting from home ownership below the download block. The spreadsheet contains definitions for some of the terms in the cell comments. The Home Ownership Expense Calculator spreadsheet will help you estimate the monthly cost of home ownership, which is one of the main considerations in deciding what home you can afford.
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