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Besides the actual mortgage payment, which also factors into the monthly payment on a home?
A. Renters’ Insurance
B. Down Payment
C. Tax on Real Estate
D. Repair Costs
Answer:- C. Tax on Real Estate
Explanation:
The monthly payment may vary for a variety of reasons. The person’s monthly payment covers property taxes, homeowner’s insurance, and mortgage, including principle and interest. Although their monthly payments may fluctuate, their mortgage payment will likely remain unchanged. Here, we examine the effects of insurance and taxes and explain how these variables may alter your monthly cost. Applying for a preapproval for a remortgage entails the borrower and their lender estimating their monthly payment, which includes principal and interest, as well as an estimated monthly escrow payment (which covers homeowners insurance and property taxes) based on the typical home in the desired neighbourhood.
They should also keep in mind that this estimate is just that—an estimate. It may be based in part on the amount of taxes and insurance paid by the previous owner or on the average amount of taxes in the area.
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