It’s hard to believe that in this market we can still see listings of detached homes for sale for relatively affordable homes in Campbell River Real Estate. Let’s not forget that buyers don’t really look at the price of the property but are mostly concerned about the monthly payment. If you’re in the first step of your house search adventure consider looking at an easy tool I have on my website “the mortgage calculator”
This tool will allow you to play with your numbers to determine the rough cost of a mortgage could be. Let’s assume you’re thinking of buying a property under $500,000. Let’s assume that you have 20% down payment ($100,000). In this case you’ll be seeking a $400,000 mortgage. Today’s mortgage rates are in the 5-6% range so let’s assume that your lender will offer you a 6% rate, 25 year amortization on the 5 year term; your monthly payments will be roughly $2560
If you change the amortization to 30 years your payment will go down by about $180 to roughly $2380
The cost of mortgage is not the only cost a home owner faces. In addition to loan cost there are insurance and property taxes, which vary based on the area. Campbell River taxes can range between $2500-$4500 a year. Insurance costs depend on the condition of the house and area but roughly $2000 is a reasonable budget. Any way you slice it, you’ll end up with an extra cost of roughly $500/ month for both.