Mortgage Rates Are Dropping, But Consider These Other Costs Before Buying a Home

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This is a significant sum that needs to be included in your budget, Patel said.

Another of Patels hidden expenses of purchasing a home is whats known as points.

In exchange for a lower mortgage interest rate, points are payments paid to the lender.

A point is worth one percent of the loan amount.

Property taxes are also often overlooked.

Ham feelsmaintenance and repairsare ongoing costs that many new buyers dont anticipate.

Dont forget about a down payment, Patel said.

If youre leaving a place with any damage, you might need to pay for professional cleaning or painting.

These costs can add up quickly.

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