This is one of the biggest issues I see with younger adults who are trying to move from renting to owning/mortgage. I hear all the time “well I can afford an $1800 rent payment, so of course I can afford an $1800 mortgage payment.” Principal and interest is only one part of paying for a home.

While that might be true with some people doing very well financially, it’s not necessarily true for most because you have to factor in property taxes, home insurance (way more expensive than renters insurance), and any upkeep or repairs that could occur that you wouldn’t be responsible for as a renter. That $1800 mortgage principal and interest payment is more like 2500-2800 for the complete monthly payment after adding in tax and insurance in CT.

And even though I own a “newer” house (about 22 years old) it’s amazing how often things break or repairs/replacements are needed for expensive appliances. All of that needs to be factored in to the question of “can I afford the home” that many often overlook.

Yes, I want more people to be able to afford/buy a home. But I also want them to be in a financial position to smartly and responsibly do so so they’re put in a stressful or financially dangerous situation down the road.