There are a lot of numbers to remember when calculating how much it'll cost to buy a home. There's the price of the house, your mortgage rate, the amount of your down payment, property tax, closing costs, and insurance. They're all important, but perhaps the most important number to remember is your prospective monthly mortgage payment. After all, that's the one you'll be seeing every month – long after you've paid the upfront costs of buying a home. The Mortgage Bankers Association knows this, which is why they keep a monthly measure of median mortgage payments. Their Purchase Applications Payment Index tracks mortgage payments based on the amount applied for by home buyers applying for loans. According to the most recent report, mortgage payments are up. In fact, they hit $2,061 per month in February. Edward Seiler, MBA's associate vice president and executive director of the Research Institute for Housing America, says mortgage rates contributed to the increase. “Higher mortgage rates and home prices led to continued erosion in home buyer affordability in February,” Seiler said. “Given ongoing economic uncertainty and the likelihood of a recession, MBA expects mortgage rates to decline as this year progresses, which will help affordability.”
