What are all the costs of buying a home? — consumerfinance.gov

There are a lot of costs associated with
purchasing a home. When making the decision to buy a home it's important to know and consider all
the different costs that you will pay. There are three basic kinds of costs
involved in buying a home. The cost of the home itself, the cost of
the mortgage loan, and the real estate costs. The cost of the home itself is the
price you agreed to pay the seller. Then there's the cost of the mortgage which is the price you pay to borrow money to buy the home. Lastly you have real estate costs that
include the cost of transferring the property to you, as well as ongoing taxes
and maintenance costs.

You pay part of these costs up front when you close on your home and part over time. Upfront you pay part of the cost of the home itself
with your down payment. You'll also pay closing costs, which include both mortgage costs and real estate costs. Upfront mortgage costs include
fees you paid to your lender, like an origination fee, fees for services–like appraisal fees and title insurance. And sometimes upfront mortgage insurance fees. Upfront real estate costs include property transfer taxes and other government fees. You pay the rest of the costs over time, The amount you borrowed is known as the principal. Part of the mortgage payment you make each month will go toward paying off that principle. Another part of your monthly payment goes to pay interest on the loan. If you made a small down payment, less than twenty percent of the homes price, you will also typically
pay mortgage insurance. You'll also have to pay ongoing real estate costs, like property taxes, homeowners insurance, and homeowners association dues. These costs can increase over time.

For many people taxes and insurance costs are bundled into your monthly payment, which means your monthly payment can increase, even if you have a fixed rate loan. Because there are so many costs associated with buying a home, it's important to talk to your real
estate agent and lender and ask them how much you can expect to pay and when.

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