When you’re in the market for a new home and start searching through the listings online, you will often see a mortgage payment estimate by the purchase price. While this number can be helpful to get an idea of how much house you can afford, it’s important to understand that that number does not truly reflect what the actual monthly mortgage payment will be.
While the down payment and closing costs are more upfront costs, other fees often not included on mortgage payment estimates are insurance and property taxes. Also, if you don’t have a 20% down payment, you will need to include the cost of private mortgage insurance.
Buying a house is a big deal, which is why you should always check in with your mortgage consultant to get the most accurate quote. Once you have been pre-approved, you can decide on a price range you can live with and be one step closer to owning your new home.