Tag Archives: Housing
How to Budget for a House
A man’s accomplishments in life are the cumulative effect of his attention to detail.— John Foster Dulles
Start with Principal and Interest
This is your purchase price spread out over the length of the loan along with the finance cost of delaying the payments from the date of purchase. For example, if you buy a €200,000 house with a 10% down payment, and you borrow with a 30 year fixed rate mortgage at 4% interest, then your monthly PI (principal + interest) = €859.35. This is the one part of your housing cost that is constant and predictable, but unfortunately there are many other costs.
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