Monday, May 12, 2008

Another perspective

Watching Property Virgins on HGTV is fun. Yesterday, the host was trying to show that by looking at monthly payments instead of the huge mortgage amount, things aren’t as scary. So I decided to give it a go.

Realistically, I have to borrow a minimum of $250K after down payment to afford anything close to what I want. $250K mortgage at 25 years amortization and assuming 4.55% rate (my guess), would mean a payment of $1,390.64. This is according to HSBC’s mortgage payment calculator.

Not bad. But then I think of all the other monthly expenses. Monthly condo fees range between $250 - $450 for what I’ve been looking at , let’s say $350. Based on the bf’s bills and other similarly priced homes, property taxes will probably be around $1200/year or $100/month. Utilities, Internet, phone, and cable, will probably be another $150. That comes to about $1,900 per month of fixed expenses. Not to mention food and car (payment, insurance, and gas).

Ummm….Ok. Now I’m scared.

Another thing. People who say “Why pay rent when you can pay mortgage and own something at the end?” Well rent would be $1,000, which a lot more manageable than $1,900. Don’t get me wrong if I can I would, because you own it at the end. But I don’t want to living on mac n’ cheese so I can meet all the expenses of being a home owner.


Beachgirl said...

That's the same thing going through my head right now. Once you add in all the extras (tax, insurance, HOA's, utilities, etc), the cost is so much higher than rent.

P.S. I like your name (Brown Eyed Girl) cause I too am a Brown Eyed Girl. I always dance at weddings and proms when that song comes on. :-)

Esme said...

Thanks! I love that song.

I like your blog name too. Beach Girl sounds fun and carefree :)

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Anonymous said...

I have tried many calculators to calculate my mortgages like online mortgage calculator and bankrate calculator But i m not able to get proper results. Can u please advice me some more good sites where i can use to calculate my mortgage.
I tried mortgage calculator here. And it gave me some good results.