What Mortgage Calculators Don’t Tell You

cost of home ownership
You're in the market for a new home because interest rates are at an all-time low, and the mortgage calculator says you can afford your dream home…yippee!

Not so fast.

Mortgage calculators don't tell the whole story, so you'll need to do a few more calculations.

You should use a mortgage calculator to determine your payment or to determine if you'd benefit by refinancing.

You should use your brain to determine all the other expenses that go with home ownership. It's time for a reality check.

Expenses Mortgage Calculators Don't Tell You About

  • Property Taxes – If you're moving to another state, you might be surprised how high the property taxes can be. When we moved to Florida, friends were quick to point out that there's no state income tax. While that sounds like a huge savings, they get you with the property taxes!
  • Insurance – This can be another huge expense especially if you are moving to another state. Once again, Florida residents have high homeowners insurance rates plus many coastal residents are required to buy a wind policy. Consider this…our property taxes and insurance are more than our mortgage payment!
  • Home Repairs – Unless you're buying a brand new home, you must factor in the cost of home repairs. Those home inspectors don't catch everything!
  • HOA or Condo Fees – This can be a biggie, so make sure to inquire! It's not unusual to have $500 a month fees!
  • Utility Bills – Bigger house? Expect higher utility bills. If you're moving from the north to the south, don't be surprised to pay over $300 a month to keep that air conditioner running, and if you're moving to the North, find out about those heating bills.
  • Private School – Have you looked into the public schools in your new area? If they're not what you expected, you better factor in at least $1000 per month, per child for private school.
  • Commute – The suburbs offer more house for your money, but have you factored in the cost of the commute? If your gas guzzling sport utility uses a tank of gas a week just to get to work, that's easily over $300 a month!


Now that you've considered the real expenses associated with home ownership, you might discover that your dream home is out of reach.

The silver lining?

You won't be sitting out by your beautiful pool wondering how to make your next payment.


Image: FreeDigitalPhotos.net

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easy mortgage calculator
10 years ago

Highly descriptive post, I loved that a lot.
Will there be a part 2?

Way to go!
11 years ago

I’m sick of the parking madness. An app like this simplifies parking. A kind of parking map App.

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