Why are mortgages so expensive?

[Jose Corbera]

Hi All,

I'm about to purchase my first home with the intent to rent it out in due time. The cost of the home is 225k with 3.5% down. My monthly principal and interest is 1054.72, but when including hoa fees and the other misc. fees it will come close to $1895 per month. My loan is locked in at a 4% interest rate over 30 years. 

Are mortgages this expensive? Essentially, I will be paying almost $379700.99 for a home that costs 225k. So the true cost of the loan will be about 158k when all is said and done?! Is it just me or does anyone else find this ludicrous? Maybe because it's my first time buying and I feel that I am getting buyer's remorse I may be overreacting. 

Lastly, would it be better to buy a cheaper place or is all just relative to what is being bought?

Any advice would be much obliged? 

Thank you ,

Jose

[Thomas S.]

Funny thing is that buying a personal home is a life style decision that through out the life of ownership with payments, utilities, taxes, maintenance etc will cost,in 90% of the country, more than it will ever be worth. It is not a investment it is simply forced savings and in reality is actually a liability.

Reality .... renting is far less expensive than owning and you can afford to save even more money than the forced savings of a mortgage.

There is zero financial logic in owning a personal home yet we all seem to do it. We are strange creatures.