Not just principal and interest. Taxes, insurance, PMI, HOA, utilities and maintenance rolled into one honest monthly, annual and 10-year number.
P&I is only part of the story. We add property tax, insurance, PMI (when your down payment is under 20%), HOA, monthly utilities and a maintenance reserve.
Rule of thumb: budget about 1% of the home’s value per year for maintenance and repairs. You can tune that up or down based on the home’s age.
How is monthly cost different from a mortgage payment? A traditional mortgage payment is P&I only. True cost of ownership adds taxes, insurance, PMI, HOA, utilities and a maintenance reserve.
Why 1% for maintenance? Long-run studies from Fannie Mae, Freddie Mac and independent researchers put ongoing upkeep at 1-4% of home value per year.