The true monthly cost of owning a home
Here is an illustrative example for a $340,000 home. The mortgage payment is just over half of what owning really costs. Your numbers will be different; the list of costs is what matters.
| Cost | Per month | Notes |
|---|---|---|
| Mortgage principal and interest | $1,450 | Fixed for a fixed-rate loan |
| Property taxes | $320 | Often collected through escrow; can rise yearly |
| Homeowners insurance | $160 | Often collected through escrow; review at renewal |
| Mortgage insurance (PMI) | – | Only if the down payment was small; can often be removed later |
| HOA or condo fees | – | If you have an association |
| Utilities | $310 | Electricity, gas, water, sewer, trash, internet |
| Maintenance reserve | $285 | Roughly 1% of a $340,000 home a year, divided by 12 |
| Replacement fund | $120 | Saving ahead for the roof, HVAC and water heater |
| True monthly cost | $2,645 | Compare with the mortgage alone: $1,450 |
Why it matters
When maintenance and replacements aren't in the budget, they end up on credit cards. Saving a little each month turns a $9,000 roof into a planned expense instead of an emergency.