How big are the housing expenses?


Housing expenses are the costs of living in your house. These may include the principal and interest on your loan, together with property taxes and insurance. Some people do not actually know how big their housing expenses are and it comes to them as a shock when they find out the mortgage payment is bigger than the principal and interest required to pay on the loan.

In the US, property taxes and insurance are paid on annual or biannual basis. Borrowers with less than 20% down payment are required to open an escrow account to handle all housing expenses there are. The escrow account is opened by the lender to make sure housing expenses are paid on time and the collateral is well protected.

Beside the PITI payment, you may be asked to cover additional housing expenses such as maintenance or monthly fees in condominiums, PUD or cooperatives.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: