Final answer:
The client needs to consider property maintenance expenses, PITIA (Principal, Interest, Taxes, Insurance, and Association fees), and closing costs, which go beyond just the mortgage payment and can prevent them from affording a home when these costs surpass their current rental payment.
Step-by-step explanation:
The client who currently rents their home and is considering purchasing a home needs to be aware of additional costs that go beyond the mortgage payment, which might make the ownership more expensive than renting. The costs that will prevent this client from purchasing a home if they expect the monthly mortgage payment to equal their current rental payment are:
- Property maintenance expenses: As a homeowner, the client would be responsible for all repairs and upkeep, unlike renting where the landlord typically covers these costs.
- Principal, interest, taxes, insurance, and association fees (PITIA): These are regular expenses that a homeowner has to pay on top of the mortgage principal and interest, which might not be apparent when comparing to rent.
- Closing costs: These are the one-time fees associated with the purchase of a home, and can include title fees, appraisal fees, and more, which are additional costs not encountered when renting.
Pet deposits for pet owners (C) would not generally be a factor preventing home purchase, as this is a cost associated with renting, not buying.