Youve spent months years even saving up for a down payment for a house.
Youve budgeted meticulously,banking savingswhenever you could to make homeownership possible.
After reaching that goal, you may feel like the pressure to budget and save is gone.
But dont get too comfortable.
These homeowner expenses can quickly add up.
Here are 17 additional expenses to consider ranging from property taxes to homeowners insurance to maintenance and repair costs.
However, keep in mind taxes can fluctuate from year to year as home values and millage rates change.
What your homeowners insurance covers will differ based on your policy as will the cost.
Like taxes, homeowners insurance is often folded in your mortgage and held in an escrow account.
If not, youll want to divide your annual insurance bill by 12 and put that amount aside monthly.
This insurance is to protect the lender in case you stop making payments.
PMI usually costs 0.22% 2.25% of your mortgage.
You dont have to pay it for the life of your mortgage, in most cases, though.
Payments are due monthly and are factored into your mortgage payments.
it’s possible for you to do this in one of two ways.
The first is to just pay it as a closing cost if youve got the cash on hand.
Youll pay these monthly premiums for at least 11 years of your loan.
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Title Insurance
When someone sells you a house, they have to legally have the right to sell it.
Otherwise you could have legal issues down the road.
Whether or not youre required to get title insurance varies by state.
Title insurance costs on average $1,000 per policy.
But that numbers going to change dramatically depending on the state and the purchase price.
Flood Insurance
Tired of hearing about insurance policies?
Were not done yet!
Technically, theres no law requiring you to purchase flood insurance.
Youre technically allowed to cross your fingers and hope youll never need it.
you’ve got the option to verify if a property is located in a flood plainhere.
Flood insurance premiums are going to vary depending on the risk of your particular property.
A good place to keep these funds is in ahigh-yield savings accountor money market account.
If any utility costs were previously folded into your rent payment, be prepared for separate bills.
For example, a lot of rentals include water and sewage bills rolled into the rent.
Your landlord pays them, so you dont have to worry about them.
As a homeowner, those costs will fall on you every month.
These fees are collected to cover expenses related to shared amenities, common space, neighborhood aesthetics and security.
These fees vary, but they can tack on a couple hundred dollars to your monthly housing expenses.
If you pay your fees once a year, set up a sinking fund and save up each month.
Now that lovely task is on your plate.
You could go the do-it-yourself route and purchase pesticides, barrier treatments or traps from a home improvement store.
But if theres a family of rodents in your attic, you may want to call in the professionals.
Shop around for quotes from different companies to get the best deal.
Many offer contracts for preventative maintenance if you want your home treated regularly.
Mold
Mold is not one of those issues youll want to put off until later.
Its one of those problems that can cause major health issues.
Landscaping
Landscaping is a task youll want to decide whether to do yourself or outsource.
If youre hiring a lawn care company, be sure to shop around for the best prices.
If you go the DIY route, factor the cost of equipment and supplies in your budget.
Some equipment may also include ongoing costs, like buying gas for your mower.
You could get fined for letting your grass grow too high.
Can You Survive 10 Days of Budgeting?
If you oughta wrangle your budget, it may be time to consider a savings challenge.
Cleaning Services
Yes, you had to clean your rental.
But odds are your square footage has gone up.
The more square footage, the more time you should probably dedicate to scrubbing, dusting, and vacuuming.
If thats the case, youll want to ensure to budget in money to buy your own.
Renovations
If youre buying a fixer-upper, youre going to need a budget for renovations.
Your house is a major asset and youll want to protect it along with your family and belongings.
Many people ended up upside down on their home loans.
Situations like this can lower your home value, which can ultimately lower your net worth.
Drowning in Expenses?
Maybe youre scrambling after your car broke down.
Or you got a medical bill you werent expecting.
Or inflation has finally pushed your budget over the edge.
You dont need to go it alone.
When money is tight,these resourcescan help you manage unexpected expenses without stress.
Homeownership Expenses FAQs
Monthly housing expenses can include a range of products in addition to your mortgage.
Ideally, youll have a 20% down payment when you purchase a home.
Youll also want to save 3% 6% of the loan amount for closing costs.
Dont forget to factor in the costs of various insurance policies when you own a home, too!
But there are big things, too.
Most Americans wealth is tied primarily to home ownership.
If you pay off your mortgage, it’s possible for you to dramatically lower your monthly housing expenses.
Former senior writer Nicole Dow contributed to this report.
