First Time Home Buyers: How Much Does Owning a Home Cost?

    Costs of owning a New Orleans home

    Beyond making your monthly mortgage payments, have you considered the additional costs of owning a home?

    We never want our clients to be surprised by anything when moving from renter to home owner, so here are a few items to consider before buying your first home in New Orleans.

    Property Taxes

    If you have a mortgage, your property taxes will be included in your monthly payment. But, if you’ve paid cash (or paid off your home) you’ll be responsible for paying the annual property taxes. In New Orleans, property taxes are paid in advance, so the bill you receive in 2015 will be payment for the 2016 taxes.

    See also: How to estimate your New Orleans property taxes

    Flood and home owner insurance

    Just like property taxes, if you have a mortgage, your insurance premiums will be paid through your escrow account. The annual premiums, divided by 12, will be added to your monthly house payment until the mortgage is paid. If you’ve paid cash, don’t forget to budget for the annual bill when it comes due each year.

    Improvements

    Hate the wallpaper? Want wood floors instead of carpet? Improving your home is an excellent way to add equity, but some projects, like full kitchen and bathroom remodels, can be quite costly.

    Maintenance and repairs

    Remember when you would just call the landlord because the sink backed up or the dishwasher was leaking? You’re the landlord now, so make sure you have a cushion for unexpected repair expenses.

     

    More first time home buyer advice

     

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