3 of 15

#3: Ignoring Property Taxes and Insurance Costs
Your monthly payment isn't just principal and interest. Property taxes and homeowners insurance are bundled into your escrow, and they vary wildly by location. A house in one county might cost $300/month in taxes, while the identical home across the line costs $600/month. Research your local tax rates and insurance premiums before making an offer, or you'll be shocked when your first payment bill arrives and it's $200 higher than you budgeted.
Advertisement
