Your monthly house payment includes more than just interest and principal. Most mortgages require you to make payments toward your property taxes each month. Research property taxes for the houses you are considering and add this to your estimate. The property taxes on a $400,000 house are likely to be higher than those on a $300,000 house. Most lenders will require you pay for homeowner’s insurance as part of your monthly bill too. Insurance costs vary by state and community, but the national average is $1,249 a year according to the National Association of Insurance Commissioners (NAIC). Just like with property taxes, more expensive homes tend to have higher homeowners insurance costs. Many loans require mortgage insurance and these costs are part of your monthly payment too. Two exceptions are when you buy a home with a VA loan, which does not require mortgage insurance and conventional loans when your down payment is at least 20%.