What Factors Affect Your Mortgage Payment When Buying A Home in La Mesa
There are many factors that will affect your mortgage payment that you should consider when buying a La Mesa home, or any home for that matter.
The first thing you will want to consider when trying to determine if you can afford to buy a home is the monthly mortgage payment. There are various factors that affect the total mortgage payment and you must make sure that you take everything into account.
Your monthly payment will consist of the Principal amount of the loan, plus the interest on that principal. Many mortgage companies will require an “escrow account,” or “impound account.” This generally consist of the annual property tax and the annual insurance policy on the home. The annual amounts are divided into monthly payments.
Also, some loans will have PMI, Private Mortgage Insurance. This is required on most loans that have a down payment of less than 20%.
If you are purchasing a condominium, townhome, or a single family home in a planned community you may also have a monthly Homeowners Association payment to your complex.
Total Monthly Mortgage Payment =
Principal + Interest + PMI + Property Tax + Home Insurance Policy + HOA
Be sure to ask your loan officer about all of these. Also be sure to ask about current lender packages that may help to reduce some of these costs. All of them are factors that can affect your mortgage payment when buying a home in La Mesa and beyond.