The median monthly cost of homeownership is $1,672, according to the U.S. Census Bureau’s latest American Community Survey (2021). The median amount may vary by state (for example, homeowners in California and Hawaii pay more than $2,500, while residents of Arkansas and Indiana have a median monthly cost that’s less than $1,200).
However, first-time buyers can be in for a nasty surprise when the mortgage amount is higher than they thought it would be. “There’s a degree of misunderstanding regarding what a mortgage is – which is only the principal on the loan plus interest – and many buyers don’t realize they also need to budget for other costs that will be paid to the lender each month with the monthly payment,” explains Candice Williams, a realtor at Coldwell Banker Realty in Houston, TX.
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