Here’s a look at some of the average costs associated with owning a home.
Property taxes on your home are paid every year and the amount can vary depending on where your home is located. If you have a mortgage, your property taxes are commonly paid in monthly installments to your lender, the funds will be placed into escrow, and used to pay your tax bill when it is due.
Important to note: There are some things that basic homeowners’ policies don’t cover, such as floods. If your property is in a flood zone, you may be required by your lender to obtain a separate flood insurance policy.
These fees are paid on top of your mortgage, property tax, and homeowners insurance payments. Even if your mortgage is paid off, you’ll have to continue paying HOA fees.
The cost of utilities can vary depending on where you live, the size of your house, and usage. Typically, utilities include electricity, water, and gas bills, but also include sewage, trash, and recycling, as well as TV, and internet.
Once you’re a homeowner, you will be responsible for any repairs to the home which can include, but are not limited to, the roof, plumbing, HVAC, electricity, appliances, etc. These costs can add and having an emergency fund in place can help when those unexpected and expensive issues come up.