Your Monthly Payment Could Change

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.

yo dawg, home insurance, monthly payment

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.

 

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For the month of October, I will be participating in The  Nester’s 31 day challenge.

new homeowner tips, 31 days, neutral home colors

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4 thoughts on “Your Monthly Payment Could Change

  1. Pingback: 31 days challenge | Sandpaper & Glue

  2. One of my favorite things about being a Realtor is attending closings. I get to be reminded of my own “commitments” every time one of my buyers closes. I can’t wait for the day we are no longer paying mortgage insurance. yay!

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