How Much House Can I Afford? House Payment Versus Mortgage Payment
At current interest rates, a $150,00 house with 20% down would yield a mortgage payment of $644.19 a month according to a standard mortgage calculator. However, before you whip out the budget sheets, know there is a little more to the story.
What Factors Go Into a Home Payment?
When you buy a home, other costs will go into what you truly have to budget besides your mortgage payment. Your mortgage payment represents the principal and interest of the loan that you have taken out. You also have to take into consideration property taxes, home insurance, and, in certain cases, mortgage insurance. These costs will of course vary from person to person so it is important to talk these costs through before moving forward in a purchase. Home insurance will depend on carrier, coverage selected, deductibles and discounts from your insurance carrier. Mortgage insurance varies based on the type of loan you apply for.
Bottom line: know the answer you get from a mortgage calculator is only one factor in how much home you can afford. For more information, call me at (830) 237-8463 or connect with me on Facebook and send me a message!
Happy Homebuying!
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