THINKING OF BUYING A CONDO? UNDERSTANDING THE CONDO DUES ARE IMPORTANT

Hello Hampton Roads,

Thinking of buying a condo? Understanding condos dues is important!

The prospect of condominium living is appealing to many, especially those who want to enjoy the benefits of home ownership with minimal maintenance plus community amenities. Most condo associations are responsible for landscaping, roof, exterior, common area maintenance, paving, and common area utilities. Depending on the community there can also be certain perks like swimming pools, walking paths, clubhouses and fitness rooms. Of course there's a fee for all these services--that would be the condo dues. 

Condo dues are part of one's housing payment and are paid directly to the condominium association or property management company.  These dues are over and above one's monthly mortgage payment. If you are interested in buying a condominium it's important to know not just what the dues are and what they cover but also know that dues may affect your loan qualification. 

For example what someone pays in condo dues is the equivalent of increasing the purchase price or buying a more expensive home. For example, if interest rates are 4% for a 30 year fixed rate loan, then for every $1000.00 in purchase price one would pay $4.77 in principal and interest monthly.  If dues are $100/month and it is like adding $21,000.00 to the purchase price ($100/$4.77= $20.9).  The mortgage factor table below shows principal and interest payments:

I hope this information is helpful and please let me know if you have any questions about purchasing condominiums!

Thanks for Reading,

_________________________

See Hampton Roads Homes for sale here:  https://www.hamptonroadsrealestate.us/