The True Cost of Homeownership (It's More Than Your Mortgage)

Most home affordability calculators only focus on principal and interest. But for homeowners, those are just the starting point. To avoid becoming "house poor," you must account for the full cost of ownership.

The "Fixed" Costs

• Property Taxes: Typically 1-2% of the home's value annually.
• Homeowners Insurance: Essential protection required by lenders.
• PMI: Required if you put down less than 20%.

The "Invisible" Costs

• Maintenance: Expect to spend 1% of the house value per year on repairs.
• Utilities: Larger spaces cost more to heat, cool, and light.
• HOA Fees: Monthly or annual fees that can rise over time.

The One-Time Costs

Don't forget closing costs (2-5% of purchase price) and initial furniture or renovation needs that occur immediately after move-in.

See the full monthly breakdown for any home with our Mortgage Affordability Calculator.