>My brother in law got his house for almost $300,000 and our house payments are almost the same.
Your payments are determined by the original amount financed, the length of your mortgage, and the interest of the mortgage. If you pay your local taxes with your mortgage payment then that's another potential source difference between you and your BIL.
When did your BIL buy his house? Mortgage rates haber increased significantly. Current average rate on a 30 year fixed mortgage in the US is 6.43%. As recently as 2020 the same mortgage could be had for less than 3%.
And, of course, the length of the mortgage will make a significant difference in payment as well. Starting with the same principle your payments will be higher on a 15 year mortgage than on a 30 year mortgage.
Financing $300K at 3% for 30 years will cost $1265 per month.
Financing $175K at 6.43% over 15 years the monthly payment is $1518.
ShaneFerguson t1_j6mp6n8 wrote
Reply to Am I paying too much in escrow? by [deleted]
>My brother in law got his house for almost $300,000 and our house payments are almost the same.
Your payments are determined by the original amount financed, the length of your mortgage, and the interest of the mortgage. If you pay your local taxes with your mortgage payment then that's another potential source difference between you and your BIL.
When did your BIL buy his house? Mortgage rates haber increased significantly. Current average rate on a 30 year fixed mortgage in the US is 6.43%. As recently as 2020 the same mortgage could be had for less than 3%.
And, of course, the length of the mortgage will make a significant difference in payment as well. Starting with the same principle your payments will be higher on a 15 year mortgage than on a 30 year mortgage.
Financing $300K at 3% for 30 years will cost $1265 per month.
Financing $175K at 6.43% over 15 years the monthly payment is $1518.