LBI Real Estate Monthly Mortgage Payments

LBI Real Estate Oceanside Single Family Homes

Long Beach Island Real Estate Mortgage Payment Breakdown

Buying Long Beach Island Real Estate

For most buyers in the Long Beach Island real estate market, a mortgage is a necessary part of the transaction. While cash deals are prevalent, may buyers elect to obtain a mortgage even if it is not needed thanks to lower interest rates and the potential for stronger returns in other investments. Therefore, understanding LBI Real Estate Monthly Mortgage Payments is an essential step to buying a home in the LBI real estate market and one that can have long term implications on the cost of owning a home. A mortgage payment typically is comprised of the following items, and we will go into how these can impact a home purchase:

  • Principle payment
  • Interest payment
  • Property taxes
  • Homeowners Insurance
  • Flood insurance

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

LBI Real Estate Monthly Mortgage Payments

The principal payment will be the amount of principal (the amount owed) that is paid down each month. The interest rate is the amount of money that is charged on the principal balance. Property taxes and insurance are charged by the town and by the insurance carrier and will vary over time. While over time, the cost for most things will increase, the cost of flood insurance is perhaps the most important factor on this list. The cost of flood insurance is a very real unknown in the short and long term ownership cost of a home on Long Beach Island. For a home that is above base flood elevation, it usually comprises a meager part of the annual cost of ownership. In many cases, around $1,000/year (note that homes in the V zone will see a much higher rate than this in almost every scenario). For homes that are below base flood elevation, this charge can be significantly higher. There are cases where we see $5,000 or more in annual flood insurance rates, and that can end up representing a very significant part of your monthly mortgage payment. Not planning for this can make the cost of owning a home far greater than one may have expected. Above all else, panning for the costs of owning a home in the LBI real estate market must be the first step taken by any buyer. Understanding how your LBI Real Estate Monthly Mortgage Payments are broken down and how they can increase is the best way to start this planning process. 

Buying in the Long Beach Island Real Estate Market

There are some excellent opportunities in the LBI real estate market, and when one is found, it should be acted upon quickly. Being ready to move necessitates an understanding of what determines value in our local market and how your ownership costs will impact the transaction. Owning a home on Long Beach Island may be very different from owning a primary home, so make sure you do your homework and understand the market as best you can. If you have any questions about LBI Real Estate Monthly Mortgage Payments or about buyingselling, or investing in the LBI real estate market, please do not hesitate to contact me

By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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