The total monthly cost is calculated and displayed on the top of the purchase calculator
The Total Monthly Cost is the sum of all monthly fees associated with the on-going home ownership cost.
- Mortgage payments
- Property tax (assuming the payments are monthly)
- Utilities and fees which can include
- Home insurance
- Internet & Cable TV
If you are receiving rental income, for example, your are planning to purchase a house and rent out the basement, or you are buying a condo and planning to have a room mate, you may add the rental income value. The rental income is then deducted from your total monthly costs to show you what you actually have to pay now. If you receive more rental income than your monthly cost, it’s a positive cash flow for you.
The total is an estimation of all payments averaged into 12 consecutive payments. For example: if your mortgage payment frequency is set to bi-weekly (which is 26 payments in a year), the total monthly cost value is calculated by taking the total mortgage payments for that year divided by 12.