The real monthly cost of owning a home is principal and interest plus property tax, homeowners insurance, mortgage insurance if you put down less than 20%, HOA dues if any, utilities and maintenance. A good rule of thumb is to budget 1% to 2% of the home’s value a year for maintenance and repairs, more for older homes.
The full monthly picture
Here’s a typical breakdown for a $400,000 home with 10% down at 6.5%:
| Cost | Monthly | Notes |
|---|---|---|
| Principal and interest | about $2,275 | $360,000 loan, 30 years |
| Property tax | about $400 | At 1.2% a year; varies widely by area |
| Homeowners insurance | about $120 to $250 | Higher in storm and wildfire areas |
| Mortgage insurance | about $100 to $200 | Until you reach 20% equity |
| Maintenance | about $330 to $670 | 1% to 2% of value a year |
| HOA dues | $0 to several hundred | Condos and many new communities |
That’s roughly $3,200 to $3,700 a month before utilities, compared with a $2,275 mortgage payment.
Try it: True cost to buyAdd up the cash to buy and the first-year cost of owning, using local tax rates and your loan details.Costs that change over time
- Property taxes often rise after you buy or at the next reassessment. Estimate yours on your purchase price with the property tax estimator.
- Insurance premiums have been rising fast in many states, especially in high-risk areas; see natural disaster risk.
- Mortgage insurance ends once you reach enough equity on a conventional loan; see when you can remove it.
- Your principal and interest stays the same on a fixed-rate loan, which is one of owning’s biggest advantages over rent.
Maintenance: plan for the big items
Maintenance rarely arrives evenly. A roof can cost $10,000 to $25,000, a furnace or air conditioner $5,000 to $15,000, a water heater $1,500 to $3,000. Ask the sellers how old each one is, and read your inspection report with replacement dates in mind. Setting aside a fixed amount each month into a home repair fund smooths out the surprises.
Utilities and other costs
A house often has higher utility bills than an apartment, plus water, sewer and trash that a landlord may have covered. Budget for lawn care, snow removal, and furnishing more space. Ask the sellers for a year of utility bills.
Use it to set your budget
Build these costs into your budget before you set a price. The mortgage payment calculator includes taxes, insurance and mortgage insurance, and the affordability calculator works backward from a monthly cost you’re comfortable with. Compare towns where these costs differ with the moving cost comparison.
Common questions
How much should I budget for home maintenance?
About 1% to 2% of the home’s value a year, more for older homes. Set it aside monthly so big repairs don’t land on a credit card.
Will my mortgage payment go up?
Principal and interest stay fixed on a fixed-rate loan, but property taxes and insurance in your escrow payment can rise.
Is owning more expensive than renting?
Month to month it often costs more at first, but part of each payment builds equity and your principal and interest won’t rise like rent.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.