Unpopular opinion: People are way too focused on the down payment and ignore the monthly costs

I see a lot of first timers in my area fixate on saving that 20% for a house in Charlotte, but then they get shocked by the $400 a month HOA fee on top of their mortgage. The real budget killer is the total monthly payment, not just the upfront cash. How many of you actually ran the numbers on property taxes and insurance before you made an offer?

3 comments

3 Comments

brian_smith620d agoTop Commenter

Man, I used to be that guy, only looking at the down payment. What changed my mind? My buddy bought a place and his mortgage looked okay, but then the property taxes and insurance added like $600 a month. He didn't even have an HOA. It really showed me that the monthly total is what you actually live with, not the sticker price. Now I run the full numbers on anything I look at.

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claire_hart5320d ago

But isn't that just basic math? Everyone knows there are extra costs. If you're buying a house and don't factor in taxes and insurance, that's on you for not doing the bare minimum research. It's not some huge secret, it's just part of the normal process.

josephmartin20d ago

What about when those costs change? My property tax bill jumped almost 20% after the first year because of a county reassessment. That wasn't in my original monthly math at all.