Right now, the typical monthly home payment for fresh home buyers in America is $2890. That's almost double what it was before 2020, and it's spiked by nearly 15% in just the past year. This sharp rise is a major reason why many believe we're in a housing bubble. Experts consistently point to this figure to illustrate the significant surge in relative prices.
But here's something important to understand about the real estate market: the sticker price you see isn't the whole story. Unlike buying most things, purchasing a home typically involves a 30year mortgage. On top of that, there are additional costs like taxes, insurance, and, perhaps most significantly, interest. All of these factors contribute to the actual amount people pay each month—the mortgage bill.

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