Reprinted with permission from Freddie Mac.

WHAT YOU’LL LEARN

  • A mortgage is a serious commitment, a binding contract between you and your lender
  • It is important that you pay your mortgage on time, every month.

While shopping for your home is fun and exciting, it is important to remember the responsibilities and financial commitments you will have as a homeowner. Saving for your down payment and signing on the dotted line are simply the first steps to homeownership. As a homeowner, you will be responsible for:

  • Making your mortgage payment in full and on time every month. This was your commitment to your lender when you completed your closing documents.
  • Home repairs and maintenance costs. Your home needs routine TLC, from mowing the lawn and painting the windowsills to larger projects such as roof replacements and plumbing repairs.
  • Other housing-related costs. These include homeowner association dues (if applicable), homeowner insurance premiums, and property taxes.

KEY TAKEAWAYS

  1. As a homeowner, the down payment to purchase your home is just the start of your ownership responsibilities.
  2. Homeownership requires a commitment to pay your mortgage, property taxes, homeowner association dues (if applicable), and other costs associated with home care.