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.