Learn the Real Definition of PITIA, An Important Real Estate Term Buyers Should Know
By Jason Boone
Are you thinking about buying a Bend Oregon Home?
If so, you have to know the real definition of PITIA and how it applies to you.
P – Principal
The first part of PITIA stands for principal, or the maximum monthly payment that you can expect to pay for the mortgage on your home.
When calculating the monthly mortgage payment that you would feel comfortable paying make sure that you will be able to pay your monthly bills first before your mortgage because, it doesn’t make sense to live in a home that you can’t afford.
I – Interest
As a homeowner you can expect to pay interest on your mortgage loan.
The current mortgage interest rate for a 30-year fixed mortgage loan is 4.31% while the mortgage interest rate on a 15-year fixed mortgage loan is 3.41%.
T – Taxes
The third part of PITIA stands for property taxes and this is many times the part of homeownership that people forget about until it’s too late.
Property taxes have to be paid each year and they have gone up in Deschutes County over the last 12 months so before purchasing a home in Bend make sure that you’re fully aware of the property taxes that will be due so you can plan to pay them on time.
I – Insurance
As with owning a vehicle you will be responsible for having insurance for your home.
Homeowners insurance is important because it will cover you if there is any damage done to your home from fire or nature plus you will be protected from lawsuits if someone is injured in your home as well.
A – Association Dues
Although you may not be moving to an area in Bend that has a homeowners association, most new home communities do have homeowner’s association fees that cover the cost of landscape maintenance and the various amenities that the community offers.
It’s important to be aware of all the costs before moving into a home so you can be fully prepared for all of the financial responsibility that comes with home ownership.
Planning On Buying or Selling In Bend? Contact Me
If you’ve been thinking about buying or selling a Bend Oregon home contact me, Jason Boone, Principal Broker at Duke Warner Realty | Skjersaa Group by calling me at (541) 383-1426 or by emailing me at Jason@sgboone.com.