Two $350,000 Homes. Two Very Different Monthly Payments.

If you're choosing between two homes listed at $350,000, I'd want a separate payment estimate for each address before you make an offer.

The price tells you what you're buying. It doesn't tell you everything you'll pay each month. One house can leave substantially more room in your budget even when the mortgage amount is the same.

If the homes otherwise meet your needs, I'd pay close attention to that difference. That's money you could keep for repairs or emergency reserves instead of committing it every month.

Put the two addresses beside each other

Here's a hypothetical comparison. Both homes cost $350,000. You put 20% down, or $70,000, and borrow $280,000 on a 30-year fixed mortgage at an illustrative 6.5% interest rate.

That makes monthly principal and interest about $1,769.79 on either loan. For this conventional-loan example, assume no private mortgage insurance.

Now add fictional property expenses:

Home B costs $450 more each month in this example. None of that difference comes from the price or mortgage interest rate.

These tax, insurance and HOA amounts are invented to show the comparison. They're not quotes, local averages or estimates for an actual Northern Kentucky or Cincinnati property. Utilities and maintenance aren't included.

This is an educational example, not a current rate quote or loan offer. The 6.5% figure is an interest rate, not an APR. Actual terms require borrower qualification and a property that meets the lender's requirements, including applicable appraisal requirements. Fees aren't modeled here.

Is the second home worth another $450 a month to you?

That's what I'd ask before treating the two homes as equally affordable.

You may prefer Home B enough to pay the difference. Its HOA might cover something you'd otherwise pay for yourself. Read the documents and find out what's included before making that comparison.

But if you're already comfortable with Home A, I'd want you to consider what keeping $450 in your monthly budget would do for you. It could help you rebuild savings after the down payment. It could also give you room for an expense you hadn't planned on.

Don't spend that room twice. If you expect the house to need work, put the repair into your budget before deciding how much extra monthly cost you can carry.

Check the expenses for the property you would own

Start with the property's tax information, then ask how ownership changes or reassessment could affect the bill. A seller's past tax payment shouldn't be your only budgeting number. Confirm the applicable details with the local taxing authority.

Get homeowners insurance pricing for the actual address and the coverage you need. A listing doesn't give you an insurance quote.

For an HOA property, review the current dues and ask about assessments. Find out which costs you'd still pay separately. Keep those obligations in your household budget even if they won't be collected with the mortgage. The CFPB notes that HOA dues are usually paid separately.

The CFPB's explanation of total mortgage payments separates the loan payment from other housing costs. Its Loan Estimate guide also identifies estimated taxes, insurance and assessments that may sit outside escrow.

Compare the cash left after closing, too

The monthly comparison still leaves another decision: what will you have in the bank after buying each home?

Two houses at the same price can need different repairs. I'd want the inspection findings in front of you when you decide what cash to keep back. A lower monthly cost won't pay a repair bill due immediately unless you have the money available.

Bring both listings and your planned down payment to the financing conversation. Ask for estimates using the same loan assumptions, then check the property expenses separately.

Ask me to compare the two addresses. I'd rather you see the $450 difference before making an offer than discover it while trying to rebuild your savings after closing.