Albuquerque Real Estate - Housing Market Statistics - MLS Search

There is much more than the purchase price to consider when determining how much house you can afford to buy.

Let’s say you feel $2,400 a month is a comfortable house payment and you qualify for a 6% interest rate. You might think a $400,000 house is the right price to be looking at. Unfortunately, you need to take into account taxes, home owner’s insurance, private mortgage insurance, maintenance, and possibly, HOA fees. These expenses could add hundreds of dollars to your monthly home ownership cost. Also, make sure you factor in your down payment as this will reduce your monthly payment.

For example, taxes on a $400,000 house in Albuquerque can run approximately $2,750 a year. Insurance can add another $1,200 a year. And maintenance costs could run into thousands of dollars a year. Most experts recommend setting aside one to three percent of the value of your home per year for maintenance cost. Remember, a dishwasher can be purchased for a few hundred dollars, but a new roof can easily run $5,000 to $10,000.

Whether you’re looking for a $200,000 house or a $2,000,000 luxury home, speaking with a mortgage professional or real estate consultant about all the costs associated with your new home will assure that you can afford that dream home.