The true cost of owning a home. It’s more than the mortgage.

Where the average $21,400 a year goes

Bankrate’s 2025 study estimates costs for a single-family home beyond the mortgage. Its maintenance figure is a budget based on home value, not a bill every homeowner received. State totals range from $12,579 in West Virginia to $34,573 in Hawaii.¹

Bankrate 2025 study figures.¹

Property taxes and insurance

ATTOM reports a $4,427 average single-family tax bill for 2025, up 3%, with a 0.90% effective rate. State averages run from $1,081 in West Virginia to $10,499 in New Jersey.² Bankrate’s $4,316 tax benchmark differs because it uses different data periods and adjustments.¹

Bankrate’s July 2025 insurance rates averaged $2,470 for $300,000 of dwelling coverage, with examples from $834 in Vermont to $6,425 in Nebraska. Flood coverage is separate.³ Get an address-specific quote; the home’s sale price is not its insured rebuilding cost.

Maintenance: a range, not a prediction

Fannie Mae suggests saving 1%–4% of home value each year, with newer homes nearer the low end and homes over 30 years old nearer the high end.⁴ On the $417,500 September 2026 median existing-home price, that is $4,175–$16,700 a year.⁸ Keep a separate repair reserve and ask about the age of major systems.

The true monthly cost calculator

The monthly total includes principal, interest and the ownership budget below. “Cash to close” is down payment plus estimated closing costs. The year-one comparison adds interest, ongoing costs and opportunity cost; it excludes closing costs, home-price changes and tax benefits. Principal builds equity, so it is excluded from that comparison.

Closing costs are separate from your down payment

Freddie Mac suggests allowing 2%–5% of the price: $4,000–$10,000 on a $200,000 home. Earnest money is often 1%–2% and is normally credited toward closing, rather than added again. Lenders may collect escrow reserves too.⁵ LodeStar’s 2025 average of $4,528 covered title, settlement, recording and transfer charges; lender fees and prepaid items were additional.⁹ Use your Loan Estimate for a complete breakdown.¹²

PMI with a smaller down payment

Freddie Mac gives a typical PMI range of $30–$70 a month per $100,000 borrowed. Conventional loans commonly require it below 20% down. You may request cancellation at 20% equity under the applicable rules; automatic termination generally occurs at the scheduled 78% balance if payments are current. FHA insurance differs.⁶ The calculator estimates the first year only; it does not predict a cancellation date.

HOA fees and special assessments

In the 2024 Census data, 21.6 million of 86.6 million owner households paid a condo or HOA fee. The median among those paying was $135 a month; about 3 million paid more than $500.⁷ Ask for the budget, reserves and upcoming special assessments. Enter $0 only if there is no fee.

What your down payment could earn elsewhere

Cash tied up in the purchase cannot earn a return elsewhere. For comparison, the calculator uses the 10-year Treasury yield of 5.10% on October 15, 2026, not a guaranteed future return.¹⁰ Freddie Mac’s 30-year fixed mortgage average was 7.40% that week.¹¹ A home can gain or lose value; this short calculation does not decide whether buying beats renting.

Questions before you sign

1. What were the last two years of property tax bills? Will the sale trigger reassessment?
2. What would insurance cost here, including flood or wind cover?
3. How old are the roof, HVAC and water heater?
4. What are the HOA fee, reserves and planned assessments?
5. Can I compare the Loan Estimate with offers from other lenders?¹²
6. When and how can PMI end on this loan?