Compare mortgages, affordability, rental yields, and investment returns across international markets with localized data and regulations.
| Cost Component | Monthly | Annual |
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| Year | Principal | Interest | Balance |
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Your monthly mortgage payment includes principal, interest, taxes, and insurance (PITI). The principal is the amount you borrowed, while interest is the cost of borrowing. Property taxes and insurance are typically escrowed by your lender.
Interest rates significantly impact your total cost. A 1% difference on a $400,000 loan can mean $90,000+ over 30 years. Rates vary by market, loan type, credit score, and down payment percentage.
The 28/36 rule suggests housing costs should not exceed 28% of gross income, and total debt payments should stay under 36%. Some markets allow higher ratios, while conservative guidelines suggest lower limits.
Gross yield = (Annual Rent / Property Value) Γ 100. Net yield accounts for expenses. A good rental yield varies by market: 5-8% in major cities, 8-12% in secondary markets. Cash-on-cash return measures actual cash invested.
For house flipping, investors typically pay no more than 70% of ARV (After Repair Value) minus repair costs. This margin accounts for holding costs, closing costs, and profit. Example: $450K ARV - $50K repairs = $400K Γ 70% = $280K max purchase.
Real estate costs and regulations vary dramatically by country. The US typically has 30-year fixed rates, while UK mortgages are often 2-5 year fixed then variable. Canada requires mortgage insurance for <20% down. Always research local requirements.