Don't run to your
real estate agent based on these numbers yet.
Don't forget that you'll
insurance on top of that figure. Tax rates are set locally and both the insurance
premium and tax payment will vary according to the cost of your home. In addition,
you might need to pay private mortgage
if you put less than 20% down.
To cover these
expenses, multiply the purchase price by .002% (two-tenths percent), and add that
figure to your monthly principal and interest
payment, just to be safe. In the above example for a $90,000 home, that equals
$180 on top of $587 for a total monthly cost of $767. Remember also the additional
expenses of maintenance and repair.
here to determine whether you should rent or buy. Our calculator can determine
the financial answer for you.
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