Here’s Why Your Payment INCREASES AFTER You Buy A House

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0:00 My Friend Texted Me This
0:49 Your Mortgage Payment
5:06 This Makes It Go Up
10:20 What Doesn't Change
11:39 So Renting Is Better?
13:48 What You Should Do
16:52 Get Started

— DISCLAIMER —
Kyle Andrew Seagraves is Federal Mortgage Loan Originator (NMLS 1701021) licensed in all 50 states with the Dan Frio Team at Allied First Bank (NMLS 203463), an Equal Housing Lender. Separately, Kyle owns Win The House You Love LLC, an education company. Win The House You Love LLC is not a lender, does not issue loan qualifications, and does not extend credit of any kind. This video is only for educational usage. All calculations should be verified independently. This video is not an offer to lend and should not be used directly to make decisions on home offers, purchasing decisions, or loan selections. Not guaranteed to provide accurate results, imply lending terms, qualification amounts, or real estate advice. Seek counsel from a licensed real estate agent, loan originator, financial planner, accountant, and/or attorney for real estate, legal, and/or financial advice. Allied First Bank is not affiliated with the VA, FHA, or any other government agency. This video has not been approved by any government agency.

[KasandraWilliams]

My number one take-away from this is to stay away from HOA and new construction homes.

[diegolara]

I live 35 mins from Dallas and my payment has actually come down due to property tax rate cuts and me finding lower home owners insurance. It started at $1748 and is now at $1682. This includes the loan, property taxes, PMI, insurance etc.

[postalpancho]

I can confirm the very first text from his friend. Financed my home 8 years ago. Start at $1580, and over the years it has increased more and more. Now my home is $1870/month. For me to buy my exact same house now would be $2500-$2600/ month. I’m still in a good position and have over $120k in equity but there’s no point in selling because I’d just be having to buy another over priced house. For those waiting on the sidelines, the sooner you buy the better off you will be in the future. It takes time but eventually you will save a lot of money.

[Lyss]

My mortgage went up from 4700/mo to 5700/mo in two years. All from property taxes. I had no idea the reassessed value changes to the sale price after you buy. But no one owns a home in my family so I have learned everything firsthand.

[Heavyperro]

In AZ, the tax roll is two years behind. If you buy a new build, the taxes that are calculated are based on the value of the property two years before. This means that during the first two years your taxes will be super low and on year three you will begin paying taxes based on your homes value. Unfortunately, as an added bonus you will also have to deal with your mortgage company taking additional money out because you’ll be short and they will calculate for additional taxes the following years. My mortgage in 2021 was $1, 400. In 2023 it went up to $1, 700.

[daphyneshine]

I remember when my mortgage in 2009 was $675. Now 15 years later my mortgage is $1068. State of Georgia. It’s still not bad.

[darrell_dee]

Don't forget to file for your "Homestead Exemption" if your county has it. I'd also add that in some states and by county, if your property taxes include school taxes you can file for exemption when you turn 65. Where I live just outside metro Atlanta, the school taxes are half of the property tax bill. The savings would be significant once you've reached this milestone.

[Itzryan]

Hallandale Beach, FL Duplex
Bought in 2022 with FHA loan
2022 $4, 000/mo
2023 $4, 200/mo
2024 $4, 800/mo
It was a surprise to say the least.

[laceycochran]

I had house reappraised contacted mortgage lender removed PMI, and escrow. I now put aside my own money monthly and make 1 time a year payments for property tax and 1 time a year insurance payment. THEY NO LONGER CONTROL MY PAYMENTS. I essentially pay same monthly payment and control my escrow. ❤ I'll never have escrow again!!

[Think_harder_please]

Totally unrelated, but your voice is so soothing!

[carlos]

Excellent video. Every person who is considering buying a house should watch this video because no realtor explained this to you, like this...

[mamatosh]

You explained that well. They should explain this during the process of signing your closing papers or your approval. I learned this after my payments changed. Thanks for explaining it so well.

[jddj]

I left apartment life thinking buying a house would be better, to find out my mortgage keeps increasing higher then my apartment use to, rent only went up $50 a year and all maintenance was covered, while my property Tax keeps increasing, HOA doubled since I bought my house, property insurance insurance skyrocketed because I'm Florida worst state to buy a house. Then they tell you at least you're not throwing money away by putting money on something you own, yeah right most of the mortgage is interest, buying a house has gone from the great American dream to the great American scam

[guevarasamson]

This our second year of first time home ownership on a new construction and each year our house payment has been lowered because our lender over estimates our taxes. So each year so far we've received a surplus check from our escrow account! so I'm glad they qualified us from the get go by OVER estimating taxes.

[Zahra_-Abd]

Bought in 2021
2021 1, 527.72
2022 1, 561.27
2023 1, 547.79
2024 1, 854.02
I have a shortage of about 2.5k.
In 2022 the property tax went up to 4.7k. I called the city and they explained the reason for the increase and they recommended to file a special property tax refund. I got some of my money back. This year (2024) the increase is driven by my home insurance which went up by 1k. I called my insurance agent to either look for a new insurance with less premium or lower my current dues. Thankfully, I had my roof replaced in 2023 by the insurance and they gave me a discount of 1k for that reason.

Insurance companies are technically trying to protect their nest since our weather is WILD in MN. 😅

The lesson here is:
Ask around why you got the increase!!!

[baileyjohn]

Yup mine went up by $1K lol… my insurance went up by $2K and then I had an escrow shortage. My lender then told me.. ohh even though your escrow short only by $2K, each month your monthly payment is now $1k more because we have to include a “cushion” in each month … lol makes no sense. I’m trying to get a lower quote

[alittlerayofsunshinee]

This video was extremely informative and easy to understand. Thanks for explaining cause this is all so very new to me!

[volvo]

Thank you for sharing this, people are completely misinformed on this topic and think they have fixed housing costs for 30 years

[lmcm]

Wow! I’m listening through my airpods and your video’s sound quality is the best! I was able to multitask and still listen well to your video!

[gingerkilkus]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.