Mortgage Is the Maximum You Pay Each Month — Rent Is the Minimum

Renters know their maximum housing cost: the rent. If something breaks, the landlord pays. Homeowners have the opposite reality — the mortgage payment is the least you will spend on housing each month. On top of that come property taxes, insurance, repairs, maintenance, HOA fees, and the occasional emergency like a burst pipe or a failing roof.

A good rule of thumb: budget an additional 1-2% of your home's value per year for maintenance. A 300,000 dollar home means 3,000 to 6,000 dollars a year in upkeep on top of the mortgage. If this makes the monthly number uncomfortable, you may be looking at too much house.