10 biggest mortgage mistakes
Ignoring the true costs of home ownership
The sale price you agree to pay for the home isn't the true cost of owning the home.
First, look at your mortgage amortization schedule to see the total amount of principal and interest you’ll pay.
It can be eye-opening to see that borrowing $250,000 for 30 years at 4.30% will cost you $445,384. Use our mortgage calculator to estimate your payments over the life of a loan.
Also learn about the property tax system in your community to see when taxes can increase and by how much. Property taxes can add thousands of dollars to the cost of your home each year.
You’ll additionally be responsible for homeowners insurance, possibly mortgage insurance, all the ongoing costs of furnishing and maintaining a home, and maybe some monthly bills you didn’t directly pay as a renter, like trash and water.
If your home is in a special flood hazard area, your lender will require you to carry flood insurance, which will add hundreds annually to your homeownership costs. Prices vary by location.