So you’re thinking about buying your first home and each night after work, you go home and you’re pouring over your financials with your spouses, your significant other, and you’re just trying to make sure that you can afford the monthly cost. One problem, you can’t figure out what all the costs are gonna be to owning a home. And you’re worried that there may be hidden fees or costs that you’re not aware of, cause you’ve never done this before. We’ll, worry no longer because I am gonna take you through my recent home purchase and show you exactly what the monthly costs are.
Hi, everyone. I’m Larry Gibbons, president of the Gibbons group, where we believe that anyone can create wealth, freedom, and a better life through real estate. So, my wife and I just bought our home six months ago and we’ve been living there and I figured it was a great example to walk you through exactly what the monthly costs are going to be when you buy your first house.
So, my wife and I bought our house for $800,000. Believe it or not, In DC, Maryland, Virginia, that’s actually pretty cheap. I put down a 10% down payment of $80,000 and I had a debt of $720,000 on the house. Interest rates are absolutely amazing right now, and I was able to get a 2.95% interest rate. So, my monthly mortgage payments to the bank was only $3,016, which considering DC, Maryland, Virginia rents right now, it’s actually cheaper. So, we’re done right? Unfortunately not.
So, my wife and I bought in Montgomery County. It’s a nice area and when you live in any county really, you pay property taxes. Montgomery county’s are probably higher than most, but still in any county you live, you’re gonna pay property taxes. So this place that we bought, our property taxes each month are $744.61. It is what it is, right? Death and taxes, the two certainties in life. You’re never gonna get out of it, and there’s really no work around. Plus, because we put down less than 20%, we have to pay PMI, otherwise known as property mortgage insurance.
I’m gonna link a video above if you have any interest in learning more about what PMI is, check out this link above, but on this house, it’s going to cost me $600 a month. Again, if you have any interest in learning more about what PMI is or how to figure out what it’s gonna cost you, click the link right here and you can figure that out. So then you have your utility payments. First, the gas bill. So, in the last six months, gas bill’s been about $11 a month, but the very first month they charged me $266 as a connection setup fee. So, it’s definitely something to be aware of when you’re buying a first home, is that with the utilities,