In order to make payments on your home loan there is a well kept secret – in plain sight. Yet few non-economists ever look at the extent of the insidious unconsidered costs. Wages needed to meet home loan payments are loaded with income tax and FICA.
How many Home Buyers are aware that the cost of a mortgage is 15.3% higher than the base home loan payment quoted by lenders?
Note: The FICA paid by your employer should be added to your wage costs as grossing up all costs is appropriate for determining the cost of your employment to your employer.