Understand the cost of buying a home.

Home-buying calculators

Costs of buying and owning

Ownership splits into a large upfront outlay, a monthly loan payment, and recurring costs that continue long after the loan is paid off.

Mortgage principal & interest

The loan payment. Early payments are mostly interest; the principal share grows over the life of the loan.

Largest monthly line item

Down payment

The cash portion of the purchase price. It determines the loan size and whether mortgage insurance applies.

3%–20% of price

Closing costs

Lender, title, escrow, government, and prepaid charges due when ownership transfers.

2%–5% of price

Property taxes

An annual local levy based on assessed value, usually escrowed monthly and subject to reassessment.

0.3%–2.2% of value per year

Homeowners insurance

Coverage priced on rebuild cost, not market value. Flood and earthquake require separate policies.

$1,000–$4,000 / year

HOA fees

Dues for shared maintenance, amenities, and reserves in condos and planned communities, plus occasional special assessments.

$0–$800 / month

PMI

Private mortgage insurance, generally required below 20% down on conventional loans and removable as equity builds.

0.3%–1.5% of loan per year

Maintenance

Routine upkeep: servicing systems, landscaping, gutters, paint. Budgeted monthly, spent unevenly.

~1% of home value per year

Repairs

Replacement of major components — roof, HVAC, water heater, plumbing. Infrequent, expensive, and unavoidable over a long enough horizon.

$5,000–$30,000 per event

Utilities

Typically higher than in a rental, since owned homes are usually larger and the owner pays every service.

$200–$500 / month

Home-buying guides