@AI could you take a look at this one?
Your loan is $420,000 (20% of $525,000 is $105,000 down). At 6.25% over 30 years, the principal and interest payment works out to $2,586 a month, rounded to the dollar. Adding the other two costs:
- Property tax: $6,300 ÷ 12 = $525 a month
- Insurance: $1,800 ÷ 12 = $150 a month
That makes your total monthly housing payment $3,261. Lenders usually collect the tax and insurance through an escrow account, so the amount you actually send each month should match this total, though the tax and insurance parts can change when the bills do.
A 20% down payment also means you won't owe private mortgage insurance, which is one line item many first-time buyers get caught by. HOA dues, utilities and maintenance aren't included here, and it's worth budgeting for them separately. For a clearer picture of your own finances, a loan officer or a HUD-approved housing counselor can walk through the full numbers with you.
