We understand there are fancier calculators out there, but given that you're a first time buyer, we wanted to break this all down for you. For all you condo / townhome buyers, most of you will have four components to your monthly mortgage payment: principal & interest, real estate taxes, monthly assessments, and private mortgage insurance. Single family home shoppers, you'll probably have four components as well: principal & interest, real estate taxes, home owner's insurance, and private mortgage insurance. Now, for those of you that are putting down more than 20% down, you won't have to wory about private mortgage insurance (PMI).
Remember, this is only one facet of your payment. If you're buying a townhome or condo, add the monthly assessment (always look to see what that monthly assessment covers; gas, garbage, common insurance, water, etc.). If you're putting down less than 20%, you will pay monthly mortgage insurance. This amount will vary, but we recommend using $100 a month when budgeting for mortgage insurance. If you are buying a single family home, you will have to pay for homeowner's insurance (for condos and most townhomes, this expense is covered in the monthly assessment). Please check with your insurance representative as to what the average cost might be.
