Blog

2 Identical Sales Prices With 2 Different Payments?

The amount you pay each month for your new home can vary widely, and it’s not just about the house price. Here’s why:

Property Taxes: Depending on where you buy, property taxes can be high or low. It’s based on the home’s value and local tax rates.

Home Age and Insurance: Older homes might need more expensive insurance due to potential risks. Insurance costs depend on the house’s condition and location.

Interest Rates: When you first started looking, interest rates might have been lower. If they’ve gone up, your monthly mortgage payments will be higher.

Loan Terms: Your mortgage terms matter. Higher interest rates and shorter loan durations mean bigger monthly payments.

Down Payment: A larger down payment reduces your loan amount and lowers monthly payments.

Private Mortgage Insurance (PMI): If your down payment is less than 20%, you might pay for PMI, increasing your monthly costs.

Property Value: More expensive houses come with higher monthly payments.

When comparing houses, consider all costs, like taxes, insurance, and mortgage, to make the right choice for your budget. Working with a mortgage lender and real estate agent can help you make an informed decision. Click HERE to get a free review of your debt-to-income (DTI) ratio.

With over a decade of experience in mortgage financing, Kory Small has been writing articles since opening his mortgage brokerage in January 2021. Originally from Louisiana, Kory has called Houston home for 24 years and serves Houston and the surrounding areas. With a knack for simplifying difficult concepts, Kory focuses on making the mortgage process simple and efficient. Known for clear communication and top-tier service, he works closely with clients and real estate agents to ensure smooth transactions – whether FHA, VA, Conventional, USDA, Jumbo, Non-QM loans (bank statements, DSCR, asset-based, fix-and-flip) or multiple down payment assistance programs across Texas. Outside of the mortgage world, Kory enjoys cooking using his original seasoning blends, producing music, and spending time with family.

Related Posts

Back To Top