The Mortgage Isn’t the Only Cost of Homeownership

Many buyers spend months preparing for their down payment and monthly mortgage payment. What often catches homeowners by surprise are the expenses that come after closing day.

Property taxes, homeowners insurance, utilities, lawn care, snow removal, and routine maintenance can all add up throughout the year. Then come the unexpected expenses. A furnace quits. The water heater leaks. The refrigerator stops working. It’s rarely a matter of if these things happen, but when.

A good rule of thumb is to set aside 1% to 3% of your home’s value each year for maintenance and repairs. For a $250,000 home, that’s roughly $2,500 to $7,500 annually. Even setting aside a small amount each month can help when unexpected repairs arise.

Buying a home is one of life’s biggest milestones and an exciting accomplishment. Understanding the full cost of homeownership helps homeowners feel more prepared from day one. A little planning and budgeting for future maintenance and repairs can go a long way toward making homeownership a positive experience for years to come.