Guides / The cost of owning
What owning a home really costs each month
The mortgage payment is only the start.
Many new homeowners budget for the mortgage payment and get caught out by everything else. Here are the costs to plan for, so the monthly number is real.
The usual list
- Principal and interest on the mortgage
- Property taxes (often paid through escrow)
- Homeowners insurance (often paid through escrow)
- Private mortgage insurance, if your down payment was small
- HOA or condo fees
- Utilities: electricity, gas, water, sewer, trash, internet
- Maintenance and repairs
- Savings for big replacements
Turn it into one number
Add everything up as a monthly figure. Yearly costs like taxes and insurance become monthly by dividing by 12. Our true cost page shows a worked example.
General educational information. Costs vary by home and location. Better Home Budget isn't paid by any lender, insurer or contractor.