We have already talked to a bank about financing our home, but the monthly payment they quoted is a lot more than the payment I calculated. Why would there be a big difference?
If your lender calculated the payment for your loan, they likely factored in the principal you want to borrow, the time you want to take to repay the loan and the interest rate. This gives them a principal and interest payment. Many lenders also escrow for property taxes and insurance. Based on the home you are looking at, or market averages, they would have added these taxes and insurance costs in. This is often referred to a PITI payment, for principal, interest, taxes and insurance. This is the actual amount you would be paying each month and is more indicative of what you must be able to afford.
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If your lender calculated the payment for your 