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  Mortgage Rates Near 7% Again: Why P&I Calculators Are Misleading Buyers in 2026

  Elmoustahyi Abdallah replied 2 minutes ago 4 Members · 15 Replies

  • hidden costs
  • Mortgage Rates
  • PITI
  • true cost

• 

  Ken Coury

  Member

  October 23, 2026 at 2:36 pm

  Great questions, Elmoustahyi.

  The #1 mistake: shopping the premium while ignoring the deductible structure.

  Two quotes can show nearly the same annual premium and be completely different products. The classic trap is the separate wind or hail deductible — in coastal states it’s often 2% to 5% of the dwelling coverage, not a flat dollar amount. On a $400,000 home, a 5% wind deductible means $20,000 out of pocket before insurance pays a dime on a hurricane claim. Buyers see the lower premium, feel smart, and have no idea what they actually bought until the worst day of their homeownership.

  So the budget number looks right and the protection is hollow. That’s worse than overpaying.

  The question to ask the agent:

  “Walk me through every deductible on this quote — including any separate wind, hail, or hurricane deductibles — and tell me exactly what I’d pay out of pocket on a typical claim.”

  And a strong second question: “Is there anything about this property that could change my rate after your company’s inspection?” That one surfaces the conditional-bind risk before it becomes a surprise letter.

  Ask those two, and the number going into your calculator gets a whole lot more real.

  — Ken Coury, Coury Insurance Group

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  Elmoustahyi Abdallah

  Member

  October 23, 2026 at 3:16 pm

  This is gold, Ken. Thank you for this detailed response. 
  
  The "Deductible Trap" is something almost every first-time buyer misses. They look at the premium, feel relieved it's within budget, and then get hit with a 2% or 5% wind deductible when a storm hits. Your point about asking the agent specific questions during the inspection period is exactly the kind of practical advice buyers need.
  
  Since you are in the industry, I'd love to ask: Do you think insurance companies will start making deductibles more transparent on the initial quote pages to help buyers compare apples to apples? Or will it remain buried in the fine print?
  
  Also, if you have any suggestions on how to improve the insurance section of my True Cost Calculator (to make it more useful for agents like you), I would genuinely love to hear them. 
  
  Thanks again for the invaluable insights.

  • This reply was modified 1 minute ago by  Elmoustahyi Abdallah.
  • This reply was modified 31 seconds ago by  Elmoustahyi Abdallah.

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