What's the True Cost of Homeownership? A Complete Guide

The first step to deciding whether you're ready to buy your first home is sitting down with your budget and running some serious numbers. After all, the cost of home ownership goes far beyond your monthly mortgage payment and closing costs. Use this helpful guide to determine the true cost of homeownership and how it fits into your budget.

Costs to Purchase a Home

Let's start at the beginning of the process. You've picked out your dream neighborhood, narrowed down a few mortgage lenders, and even reached out to a local real estate agent. How much money should you have set aside to acquire the house?

According to a January 2026 report from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the median home sale price in the U.S. was $392,300 in October 2025. However, that cost varies widely based on size, location, age, and condition. 

Down Payment

Several types of home loans are available to home buyers, many of which come with different down payment rates. The down payment is a percentage of the home price you pay at the closing of a home sale. 

Down payments can range anywhere from 3% to 20%, depending on your loan type and the home’s sale price. There are low down payment mortgage options that make it possible to buy a home with less money down.

Closing Costs

Closing costs are the additional fees and charges for buying a home and closing on a mortgage. These costs typically account for 3% to 6% of the home purchase price, depending on the specifics of your home sale. Based on the October 2025 median home price, closing costs range from about $11,769 to $23,538.

Every sale and state law is unique, but closing costs typically include fees for things like applications, attorneys, credit reports, property appraisal, and more. Closing costs may also include homeowner's insurance, private mortgage insurance, and a possible escrow deposit to cover the first few months of property insurance and mortgage payments.

Moving Costs

Let's not forget that you need to get from point A to point B when you buy a new home. The average cost to hire movers for a local move is $1,700, whereas out-of-state moves can range from $2,700 to $10,000. You can also save a bit of money by moving yourself, which costs between $120 and $2,300 on average.

Monthly Costs of Owning a Home

Once you've celebrated closing day, said goodbye to the movers, and unpacked the last box, it's time to start making the monthly payments. Here are some of the monthly expenses you can expect to pay as a homeowner.

Mortgage Payments

Your monthly mortgage payment is established by your mortgage lender, and it varies widely based on your home’s purchase price, loan type, mortgage rate, and mortgage term. 

Keep in mind that the money in your mortgage payments doesn't only go toward your loan's principal—or remaining—amount. Your lender often includes other necessary monthly charges in your monthly payment and pays these fees on your behalf.

Here’s how mortgage payments typically break down:

• Principal: Money that goes directly to the balance of your loan.

• Interest: Money toward the interest amount your bank charges for the loan.

• Taxes: Property taxes are held in escrow and then collected by your local government.

• Homeowner's insurance: Insurance that protects your home against damage.

• Mortgage insurance: Insurance that protects the bank if you cannot pay your loan. Note that this is not necessary for all loans.

Property Taxes

Property taxes vary by where you live. Each state sets a real estate tax rate, and the assessment of your home and property will determine the final amount. Annual property tax amounts often range from $600 to $5,500—though they can reach higher in certain locations. 

Insurance

The average cost of homeowner's insurance per year is $1,500, but the location, size, and condition of the home will play a large factor in the price. Above all, banks assess the risk of your home becoming damaged by things like wind, rain, and fire and will require additional flood insurance in some regions.

If you are required to pay private mortgage insurance (PMI) by your lender, you will also pay between 0.5% and 1% of your loan each year.

Utilities

You’ll need to budget for utility expenses, including water, electricity, gas, and the internet. The average monthly cost of utilities for a home is about $314, though some states pay higher utility bills than others. 

Homeowners Association Fees

If you are part of a homeowner's association, you may pay between $200 and $300 per month in dues. These associations perform various duties, from providing community amenities to resolving legal disputes with neighbors. 

Maintenance Costs to Own a Home

Here are the most common maintenance costs to expect when you own a home.

Cleaning

Homeowners spend an average of $40 to $50 a month on cleaning supplies to maintain and clean the house themselves. Otherwise, the cost to hire a housekeeper is about $25 to $85 per hour.

Landscaping

Expect to pay about $3,600 on average to landscape your new yard, including new shrubs, trees, rock gardens, and more.

Preventive Inspections

While you recently paid for a home inspection when you bought your house, regular preventive maintenance inspections can help you avoid future problems with high costs. The inspections cover everything from your roof and chimney to your HVAC system, costing $300 to $400 every three to five years.

Chimney Care

Hire a chimney sweep for an inspection and cleaning at least once per year. Older homes may require a cleaning before and after the primary fire season. The chimney sweep visit will cost between $130 and $380. 

Roof

Your roof is another part of your home that a professional should inspect at least once per year. Catching damage early is key, especially if your home experiences severe weather. Roof inspection costs average between $125 to $380, depending on the size and complexity of your roof.

Repairs 

It’s inevitable that, over time, systems and appliances in your home will need repairs. Here’s what you can expect to pay to repair items in your home.

• HVAC: HVAC repairs cost between $120 and $1,200, depending on the type of system.

• Foundation: Minor foundation repairs will cost about $500, while major repairs can reach over $8,000.

• Insulation: Insulation that’s older than 10 years may no longer meet federal standards for regulating your home's heat. New insulation costs an average of $1,800. 

• Plumbing: From plugging a small leak to replacing old pipes, plumbing maintenance costs $180 to $500 on average, though larger projects can exceed $1,000. 

• Appliances: Kitchen appliances, washer, and dryer repairs cost around $180, depending on the severity of the issue.

• Painting: Time for a new coat of paint? Interior painting will cost $2 to $6 per square foot, while painting the exterior costs around $3,000.

• Electrical: Electrical repairs should always be managed by a professional. Expect to pay about $350 for the cost of hiring an electrician.

• Pests: If you have an unfortunate encounter with a critter in your home, pest control specialists will cost between $100 and $250 on average.

Renovation and Remodeling Costs

One of the many homeownership benefits is being able to change the color of your kitchen cabinets or replace those wall-to-wall carpets. While costs widely vary, the most popular home renovation projects cost anywhere from a few hundred to several thousand dollars.

According to Angi’s latest State of Home Spending report, homeowners spent an average of $9,288 on home improvement projects in 2025.

Research the costs associated with completing your desired renovation or remodeling project before diving into it. For example, if you want to build a fence around your property, consider the cost of materials, installation, labor, and maintenance.