Filed under: Mortgage payment.
When you’re searching for a home, there will be a lot of people in your life who will have strong opinions on how much of a home you can afford. Some will be friends and family who have your best interests at heart, but it’s also possible to run across a broker who is looking to make the most commission possible. In this scenario, it’s possible that they could misrepresent how much the home will actually cost you. One way they may do this is by dividing the amount of the loan by the number of months you’ll be paying it off and telling you this will be your mortgage loan payment .
Of course the problem with this scenario is that there are many other factors that determine your monthly payment, including insurance, taxes and your interest rate. Beyond that, you’ll also have maintenance costs that you don’t have as a renter, and home improvement costs that can add up. Don’t forget about the amount of time it takes to keep up a home and factor that commitment into your decision. Buying a home can be a great investment – just be sure you’re getting the whole picture before you sign at the dotted line.