What HOA fees are
HOA fees are recurring charges associated with some neighborhoods, condos, and communities. They are separate from the base mortgage formula but still matter for budgeting.
Why buyers should include them
A home may look affordable based on principal and interest alone, but HOA fees can raise the total monthly housing payment enough to change the buying decision.
Best way to compare homes
Include HOA fees along with taxes, insurance, and PMI when comparing homes so you are looking at the full monthly cost rather than only the loan payment.