True Cost of a Home — Practice Questions

True Cost of a HomeReal Estate and Big Purchases — The expenses beyond the sticker price and mortgage.The purchase price is only the beginning. The true cost of a home includes many ongoing and one time expenses.

Closing costs: one time fees to finalize the purchase, often a few percent of the price.

Property taxes: a recurring tax based on the home's value, which can rise over time.

Insurance and maintenance: ongoing costs, often roughly one percent of the home's value yearly for upkeep.

Escrow account: An account that collects part of your monthly payment to pay property taxes and insurance when they come due.A cheaper home can cost more to own if it needs major repairs, so a home inspection before buying is worth it.11 practice questions with explanations. Free, and no account is needed to start.