First things first- when you are on a real estate website and it tells you what your monthly payment will be, that is in no way correct. At least not with your first house. As a first time home owner (and maybe beyond that? I don’t know, I’m not there yet), you’re going to have to take out insurance on your loan for at least a few years. Additionally, you’re going to have property tax built in to your cost too. AND if you have a super low down payment, you’re going to have to get insurance for your insurance until you own a certain percentage of your home. Yup. Insurance for your insurance.
AND property tax can change annually. The first year we lived in our house our monthly payment was about $1,000. Year two it went up to about $1,100. In year three we no longer need insurance on our insurance and it is back to $1,000 (but because we got used to the extra $100, we just keep paying it anyway to pay down our loan).
Confused yet? Here’s the bottom line: talk to your loan person. Make sure you understand as much of this chaos as you can.
For the month of October, I will be participating in The Nester’s 31 day challenge.