Finding a home with a mortgage payment that fits your budget can feel like the biggest hurdle is finally cleared. But principal and interest are only part of the true cost of homeownership, and several expenses can push the monthly total hundreds of dollars higher.
Property taxes, homeowners insurance and homeowners association dues can also rise after you move in, even when you have a fixed-rate mortgage. Buyers who focus only on the advertised mortgage payment may therefore qualify for a house that feels much less affordable once every bill arrives. Before making an offer, it pays to calculate what the property will actually cost to own each month.
