When preparing a budget to buy a new home, you should add an additional ____ percent...

When preparing a budget to buy a new home, you should add an additional ____ percent to the monthly payment on the loan for such things as homeowner's insurance, property taxes, maintenance, and upkeep.

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Expert Solution

A person taking a loan should be very well prepared before he takes the decision to purchase a house. When preparing a budget for purchasing a new house, in additional to the monthly instalments, they should also add an additional 40%, to keep up with insurance, property taxes and the upkeep and maintenance of the property.

Our credit history determines if a home loan will be available to us or not. A good credit record can increase our chance of purchasing our dream home and a poor record can break our dream of buying a new house. So, proper estimation of the costs is essential.

So, the correct answer is 40%.

jeff jeffy answered 1 year ago

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