FAQ: What are the hidden costs associated with buying & owning a home?
FAQ: What are the hidden costs of buying & owning a home?
Great question! While these are estimates, they will give you a good idea of what to expect:
• One-time closing costs: 2-5% of the home’s purchase price.
• Annual home maintenance costs: 1% of your home’s value.
• Monthly utilities: 10% of your gross monthly income.
• Annual property taxes: 0.5-2% of your home’s value.*
• Annual homeowners insurance: 2% of your home’s value.*
*Property taxes and homeowners premiums will typically be added to your monthly mortgage payment. Keep this in mind as you play around with mortgage calculators — some account for taxes and insurance; others do not.
The best way to gauge your total costs of owning a home is to meet with a knowledgeable mortgage lender. If you’d like a referral, send me a DM!