What’s in your monthly payment
- Principal and interest: the loan payment itself, based on the loan amount, rate and term.
- Property taxes: in Palm Beach and Broward counties, combined rates commonly work out to roughly 1.5% to 2% of a home’s value per year before the homestead exemption. Check the actual millage for the address.
- Homeowners insurance: often several thousand dollars a year in South Florida, depending on the home’s age, roof, windows and distance from the coast.
- Flood insurance: required in a special flood hazard area and optional elsewhere.
- HOA or condo dues: common in South Florida, and lenders count them.
- Mortgage insurance: PMI on conventional loans with less than 20% down, or FHA’s upfront and annual mortgage insurance premiums.
How to use your estimate
Lenders compare your total monthly housing payment and other debts to your gross monthly income. Approvals are simplest when housing stays near 28% of income and total debts stay under roughly 36% to 45%, though many programs allow more. If the number looks tight, try a larger down payment, a lower price, or a building with lower dues.
The default rate is the Freddie Mac national weekly average for a 30-year fixed loan, not a quote. Your actual rate depends on your credit, down payment, property type and loan program. Buying your first home? Start with the first-time homebuyer guide.
