How to Plan for the Hidden Costs of Buying a Home

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Buying a home requires more than just a down payment. There are plenty of costs associated with buying real estate that you might not expect while you’re scrolling through listings. To know how much you can spend on a home, you’ll need to plan for not only your mortgage payment but closing costs, monthly charges like homeowners association or co-op maintenance fees, property taxes, homeowners insurance, and utilities.

These extras can tack on a significant amount to your monthly housing costs, making them important to take into account before you set your sights on a particular property—it might look affordable at the outset, but be located in a place with high property taxes or come with a hefty HOA fee.

RealEstate.com, a new site from Zillow, is designed to help you search for homes based on what you can afford when all of those hidden costs are factored in. It crunches the numbers to tell you what your total monthly costs would be.

a table of data analyzing the hidden costs of buying a home, such as monthly HOA fees, taxes, etc.
Estimated monthly cost per month for a home for sale in Nashville, broken down by mortgage payments, HOA fees, and other costs.
Screenshot via RealEstate.com

Being able to see at a glance how much property taxes and HOA fees for a particular home might cost could make you rethink whether or not you can afford to live there. For instance, looking at a $400,000 home for sale in Nashville, you could expect to pay around $1500 a month in mortgage payments with an $80,000 down payment. But your actual monthly costs would be around $2100, accounting for $80 in insurance, $377 in property taxes, and $172 in utilities per month. And that doesn’t count the $5000 you’d need to plan to pay in closing costs just to buy the home.

Other real estate markets might cause you even more sticker shock. Looking at a $359,000 listing in Brooklyn, the monthly mortgage payment would only be $1337 with a $71,800 down payment, according to RealEstate.com. But between $300 for estimated property taxes, $100 for homeowners insurance, $400 for HOA fees, and $200 for utilities, the actual cost for the home would be around $2300 a month. Plus there is the one-time closing cost: an estimated $13,550.

Remember to factor in these hidden costs when you’re looking for a home:

CLOSING COSTS

Closing costs include your broker's payment, appraisal and inspection fees, escrow costs, legal fees, application processing fees, and more. Those pest inspections aren't free, after all. Closing costs differ from state to state, but they typically run around 2 to 5 percent of the purchase price of a house or apartment.

HOA FEES

If you’re buying a condo, an apartment in a co-op, or a home in a gated community, chances are you’ll have to join the homeowners’ association. The monthly fees you pay to the HOA go toward maintenance and upkeep of the building or common areas, like elevators, sidewalks, parking garages, and landscaping. If the roof of your condo building starts leaking, your homeowners’ association fees will cover it, for instance.

PROPERTY TAXES

Property taxes can cost you quite a bit, depending on where you live. In Los Angeles County, for instance, all property owners pay at least 1 percent of the assessed value of their home, plus taxes levied by specific cities within the county. In Illinois’s Cook County, you’d be paying an average tax rate of just over 2 percent—about $5000 a year on a $250,000 property.

HOMEOWNERS INSURANCE

You'll definitely want to get homeowners insurance, which will typically cover you if your roof gets destroyed by a tornado, if your plumbing breaks and floods your basement, or if someone breaks into your house. Insurance quotes depend on multiple factors, including the value of your home, your insurance claim history, and the deductible you choose. And like other aspects of buying a home, this can vary a lot by geography, especially since some homes are naturally more likely to fall victim to hurricanes or earthquakes. According to the financial website ValuePenguin, the average cost of homeowners’ insurance in 2017 is around $166 a month in Florida, for instance, while Nevada homeowners pay an average of $60 per month for insurance.

10 Ways To Look Professional, and Hide Your Pajamas, In a Video Conference Call

You don't need to wear full business attire to maintain a professional appearance.
You don't need to wear full business attire to maintain a professional appearance.
fizkes/iStock via Getty Images

The COVID-19 crisis has forced offices to shutter around the country, and as a result, more people are working from home than ever. That means we're seeing more of coworkers' bedrooms, pets, and pajamas than we ever imagined.

If you're navigating the dos and don'ts of working remotely for the first time, you don't necessarily need to choose between professionalism and comfortable pants. Just keep a few tips in mind to make your transition from being alone on the couch to hopping onto a last-minute Zoom video call as smooth as possible.

Just like in real life, wearing the right outfit can go a long way when it comes to looking professional for your colleagues. Standards aren't as high when you're telecommuting, so even switching out your T-shirt for a business-casual top when you expect to be on video can be enough to show you put effort into your appearance. And unless you plan on moving around on the video call, don't bother putting on pants that don't have an elastic waistband.

If you want to look good on video, there are a few things to keep in mind that don't apply to in-person meetings. Position your computer so you're eye-level with the camera, placing it on a stack of books if necessary, and find a room with good lighting so your coworkers can actually see you. And to avoid getting any unpleasant surprises when you see yourself in a group meeting, check how you look on camera privately before calling in.

You can find tips for looking professional on a video conference call below. And for more ways to optimize your telecommuting experience, check out these habits to practice.

  1. Sit facing a window for natural lighting.
  1. Wear a business-casual top.
  1. Choose clothes with neutral tones.
  1. Position your webcam so it's level with your eyes.
  1. Sit farther from the camera rather than closer.
  1. If you're having a bad hair day, pull it back with a hair tie.
  1. Keep on comfortable pants if you can avoid standing up.
  1. Find a private room to minimize background distractions.
  1. See how you look on your computer camera before joining a video call.
  1. If you have limited time to put on makeup, focus on brows and cheeks to give your face dimension.

11 Boredom-Busting Classes and Activities You Can Do at Home

A good workout is just one way to pass the time while socially isolating.
A good workout is just one way to pass the time while socially isolating.
jacoblund/iStock via Getty Images

Staying home as much as possible is the best way to stop the spread of novel coronavirus, according to health experts. If you’ve already taken this step to protect yourself and your community, you may be faced with a different problem: the crushing boredom that comes with spending all your time indoors. Fortunately, there have never been more ways to keep busy on the internet. In an effort to lift spirits and stimulate minds in isolation, businesses, artists, and institutions have found new ways to keep people connected from afar. From virtual field trips to free workout classes, here are the best boredom-busting activities to check out.

1. Take a free workout class with the YMCA.

Your local gym may be closed, but that doesn’t mean you have to postpone your workout routine for the foreseeable future. The YMCA has launched a new series of free, online fitness classes for people stuck at home. The on-demand videos include barre, bootcamp, yoga, tai chi, and weightlifting. After breaking a sweat for 30 minutes, you may even forget you’re not at the gym.

2. Meditate with the Monterey Bay Aquarium’s jellyfish.

Taking care of your mental health is as important as maintaining your physical health while social distancing. If you want to start your day in a good head space, tune into the Monterey Bay Aquarium’s morning “MeditOceans” on YouTube. After closing to the public, the California aquarium started uploading 10- to 15-minute guided meditations set to soothing footage of marine life or scenes from nature. We recommend starting with their video of undulating jellyfish.

3. Take a virtual field trip to a National Park.

Combat claustrophobia by taking a virtual tour of some of the country’s most majestic national parks. The Hidden Worlds of the National Parks project from Google Arts & Culture offers virtual, 360-degree tours of five National Park System sites, all guided by real park rangers. The diverse destinations include the Kenai Fjords in Alaska; Hawai’i Volcanoes in Hawai’i; Carlsbad Caverns in New Mexico; Bryce Canyon in Utah; and Dry Tortugas in Florida. You can view all the properties from your phone or computer, and if you have a virtual reality headset, you can transport yourself out of your home with an immersive experience.

4. Take an Improv Class from Second City.

Improv comedy is difficult to do alone. With Second City, you can take a class with other students and master instructors from the comfort of your home. Second City has helped launch the careers of such comedy heavyweights as Steve Carell, Bill Murray, Amy Poehler, and Tina Fey. Even though its physical theaters in Chicago, Toronto, and Los Angeles are closed during the coronavirus crisis, comedy classes will continue online. In addition to improv, students can take virtual lessons in comedic songwriting, pitching TV shows, stand-up, sketch comedy, and more from Second City’s pro teachers. If you’re not willing to pay $195 to $295 for a four- to eight-week online course, you can take a one-time drop-in improv or stand-up class for $25.

5. Learn about Women’s History with The New-York Historical Society.

Whether you’re teaching someone home from school or looking to educate yourself in your spare time, there are plenty of remote resources online. The New-York Historical Society is sharing its expertise in the form of a free digital curriculum on women’s history in America. The online course materials cover the period from 1920 to 1948, starting with the flappers of the Jazz Age and ending with women in the postwar era. You can view the entire unit, which includes archival photos and documents, on the NYHS’s website.

6. Join the D.C. Library’s quarantine book club.

If you already plan on reading a ton of books in isolation, you can turn the solitary activity into a social one by joining a quarantine book club. The D.C. Public Library recently announced its book club D.C. Reads is going digital, and now anyone can participate from home. This month’s pick is With the Fire on High by Elizabeth Acevedo. If you have a Washington, D.C. library card, you can use it to download the e-book for free. Book club discussions will take place on March 28 and April 4 at 2 p.m. through the library’s Twitter account.

7. Draw with Wendy Macnaughton.


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Whether you consider yourself a novice or a Picasso, you can benefit from making art with others. Every weekday at 10 a.m. PST, Wendy Macnaughton (illustrator of the cookbook Salt, Fat, Acid, Heat) hosts drawing classes in her Instagram Stories. All participants need is paper and a pencil. Artists of all ages can draw along, though Macnaughton states classes are just long enough to keep kids occupied for parents “to get a little work done or take a shower and take a couple deep breathes.”

8. Tour the American Museum of Natural History.

As long as you have an internet connection, the impressive halls of the American Museum of Natural History in New York City are just a few clicks away. Every day at 2 p.m. EST, the institution is sharing tours of its exhibits and collections as Facebook Lives. Some special sneak peeks published to the AMNH Facebook page so far include a tour of the Hall of Reptiles and Amphibians and a look at its trilobite collection led by curator and trilobite paleontologist Melanie Hopkins.

9. Take a cooking class with Milk Street.

Not sure what to do with your quarantine food supply? Taking a cooking class is a great place to start. Through the end of April, Milk Street (from America’s Test Kitchen co-founder Christopher Kimball) is making its online culinary lessons free to everyone. Topics include baking, cooking without a recipe, and using certain kitchen tools. After a few weeks of classes, you’ll know your way around everything from a chef’s knife to an Instant Pot.

10. Get Creative with the Museum of Contemporary Art Denver.

While it’s closed, the Museum of Contemporary Art Denver is using its social media to keep followers engaged with their creative sides. Every Tuesday on Instagram, the institution will post a new challenge to its Stories. This week’s challenge is finding something to read and posting about it to Instagram to help the museum compile the ultimate reading list. Past challenges have included setting aside 30 minutes to make art and sharing photos of pets wearing wigs.

11. Learn guitar with Fender.

At the risk of driving your quarantine-mates crazy, you can use isolation as an opportunity to get in touch with your inner rockstar. Fender is giving the first 100,000 users who create a new account on Fender Play three months of free online lessons. The instructional videos led by talented musicians are high-quality, and you can access them from your phone, tablet, or computer. And if you don't have a guitar at home, the program also includes lessons for bass guitars and ukuleles.

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