Knowing The Real Monthly Mortgage Payment A First Time Homebuyer Will Pay By Bold Real Estate Group

24 May

As a first time homebuyer, you will be exposed to hundreds or thousands of ads everyday; media stories, friends’ advice, and online mortgage calculators that will provide you with partial information. All of these sources will lead you to believe that you can have a larger home loan balance with what seems to be a very low monthly payment. Or they will show you a monthly payment that seems extremely affordable for what you are looking for, trying to hook you to make the purchase.

The underlying truth though is that most of these monthly mortgage payments that you will come across are not completely accurate. Most of the super low mortgage payments that you see advertised are targeted to a specific homebuyer who has perfect A credit and usually do not include Property Taxes or Homeowners Insurance that you will also need to pay for each month.

Marketing departments are very smart and will show these low payments just to generate leads.

The marketing ploys usually have a small fine print that tells a different story. These super low payments will typically require extremely high credit scores in the high 800s and at least a 20% down payment.

If you put less than 20% down, your monthly payment could then also include mortgage insurance to be added to your payment. Look closely in the fine print, if you can locate it and you will see all the requirements to qualify for that payment and what type of loan program it is.

An advertisement does not know what your credit score is or if you plan on putting down a down payment.

Your monthly mortgage payment will typically include Principle and/or Interest payments, Property Taxes, Homeowners (Hazard) Insurance and possibly even Mortgage Insurance. It is important to talk to your loan officer and find out exactly what your TOTAL monthly payment will be and what will be included in that payment.

Keep in mind too, that some neighborhoods will require you to pay a Home Owners Association fee or other Community specific fees each month on top of your monthly mortgage payment. If you are used to renting, you also may not realize all the different utility expenses that you will need to pay as a homeowners instead of a renter.

In order to keep your overall monthly expenses in your comfort zone, it is very important to know your TRUE monthly payments and expenses. You don’t want to buy your first home only to find that it is a financial burden. Buying your first home should be a great point in your life, not a financial nightmare.

About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida.  Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties.  For more information please forward your request to

Servicing:  Port St. Lucie, Palm City, Jensen Beach, Stuart, Vero Beach,  Hutchinson Island, Fort Pierce,  Palm Beach, Jacksonville, Jacksonville Beach, Ponte Vedra Beach, Palm Coast, Neptune Beach, Amelia Island, Atlantic Beach, Fernandina Beach, Saint Johns, Saint Augustine, Daytona Beach, Fleming Island and New York real estate.

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