When purchasing a home, buyers have a tendency to fixate on the purchase price of the property. While it is obviously important to stay within a budget that you can comfortably afford, there is another number that is way more important in my opinion. Say it with me - monthly payment.

Your monthly payment is the amount that you will be paying to the bank every month after you close on your new home. This amount typically includes your loan principal and interest, plus taxes & homeowners insurance. 

So why is the monthly payment the more important factor?

Well for one, interest rates. With everchanging mortgage rates, your monthly payment can differ significantly depending on where rates are currently standing.

For example - a $250K house purchased in 2021 with a 3% interest rate is going to have a VERY different monthly payment than the same exact $250K house purchased in 2025 with a 6.5% interest rate.

The difference might blow your mind, too....

Have a number in your head?

The difference is a whopping $473/month. 

Let's blow your mind some more with taxes. Using today's rates, a $300K home with $3K in annual taxes will cost you about $2000/month with 10% down.

Now let's take that SAME exact house with the same price and terms, but double the taxes... you are up to nearly $2300/month! 

And those aren't the only 2 big factors that can throw your numbers for an unexpected surprise. We can't forget HOA fees (where applicable) and the great beast of insurance.

If a property is located in an area with high weather-related risk, like a flood zone, you can expect additional insurance to be required by your lender, which can cost you up to thousands of dollars per year (aka hundreds more monthly). 

So, moral of the story: make sure you are working with a STELLAR mortgage lender who knows how important it is to go over numbers on specific homes to make sure you feel good about your monthly payment, before making an offer on a property.

It is the mortgage lender's job to run numbers for you. If you have questions about your loan or mortgage terms, do not hesitate to ask questions to ensure you understand all terms of your offer & loan before making the jump. 

And even more importantly, make sure you have a Realtor on your side that makes sure you do not go into anything blindly and that you understand all of this information.

Remember, you pick your Real Estate team. Choose wisely.

"Who you work with matters."