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10 Lies About Investing in Real Estate – GOBankingRates

It’s easy for anyone to calculate a sample mortgage payment online. If you’re renting and you calculate a mortgage payment similar to your current rent, don’t forget that you’re overlooking some additional — and necessary — expenses. Specifically, you’ll have to pay property tax, homeowners insurance and potentially homeowners association dues and even private mortgage insurance on top of your mortgage payment. This can all add up to thousands of additional dollars per month. 

For example, if you take out a $300,000, 30-year mortgage at 3.5%, your mortgage payment will be $1,347. But depending on where you live, your property taxes might be an additional $250 per month, on top of another $250 in insurance. If you’re buying a condo, tack on another $300-$700 in HOA fees, and if you put down less than 20%, add another $150 or more in PMI. All-in, your $1,347 mortgage payment could balloon up to another $1,000 or more. Just because you can afford a mortgage payment doesn’t mean you can afford that house or condo.

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