Your mortgage is only one piece of the puzzle — the real cost of owning a home is much bigger
This one’s a heart-to-heart, especially for first-time buyers.
It’s easy to get excited when the lender tells you,
“You’re pre-approved for a $2,000/month mortgage!”
Sounds manageable, right?
But here’s the truth no one really tells you until it’s too late:
That $2,000/month is just the beginning.
Owning a home comes with a whole bundle of monthly (and yearly) costs that aren’t listed on your pre-approval letter — but they absolutely come out of your pocket.
The Actual Monthly Payment Breakdown
Here’s what your real monthly payment looks like for most homes:
- Principal + Interest – This is your base loan payment
- Property Taxes – Escrowed monthly, and they usually go up each year
- Homeowners Insurance – Required by lenders, also escrowed monthly
- PMI (Private Mortgage Insurance) – Usually required if you put down less than 20%
- HOA Fees – If your community has one, expect monthly or quarterly dues
- Utilities – Water, sewer, trash, electric, gas — and they’re different in every home
- Maintenance & Repairs – The most underestimated part of ownership
- Optional but common:
- Landscaping or lawn service
- Pool maintenance
- Pest control/exterminator contracts
- Security monitoring or alarm systems
- Internet/TV packages (if bundled into your household budget)
Example: What This Looks Like in Real Life
Let’s say you’re buying a modest $350,000 home.
- Your base mortgage might be $2,000/month
- Add $400 for taxes
- Add $150 for insurance
- Add $150 for PMI
- Add $125 HOA fees
- Add $350–$500 in utilities (depending on location, season, and square footage)
- Add $200+ in ongoing maintenance, lawn care, or pest services
That brings your real monthly housing cost to around $3,375–$3,500/month.
That’s a lot more than just the $2,000 you were planning on.
Don’t Forget the Ongoing Maintenance Costs
This is the part most people forget — or underestimate entirely.
Stuff breaks. Stuff wears out. Stuff leaks.
HVAC units die. Water heaters rust. Windows need resealing. Appliances stop working.
Even small things — like a garbage disposal, a running toilet, or a leaky faucet — all come with time and cost.
Then there’s routine upkeep:
- Pest control contracts
- Lawn treatments or mowing
- Pool service if you’ve got one
- HVAC tune-ups
- Gutter cleaning
- Tree trimming
- Sprinkler system repairs
- Replacing filters, caulking, light fixtures, fencing…
Most experts recommend setting aside 1%–2% of your home’s value each year just for maintenance and repairs. On a $350,000 home, that’s $3,500–$7,000/year — or about $300–$600/month.
That’s not optional — it’s reality. And if you’re not budgeting for it, it can quickly become overwhelming.
Tip: Always Ask for Utility Bills
Most buyers don’t know this, but in many areas:
- You can call the local utility companies and ask for the past year’s billing history for any specific address
- Or ask the seller to provide copies of their last 12 months of bills — many will
This gives you a real-world idea of what your monthly gas, electric, water, and trash bills will look like — not just a guess.
This is critical, especially in areas where insurance rates, property taxes, and energy costs are rising fast (yes, looking at you, Florida).
House Karma’s Take
Just because the lender says “you’re approved” doesn’t mean that’s what you can truly afford — at least not without sacrificing quality of life.
We want you to be comfortable, not just qualified.
There’s a big difference between buying a home you can afford and one that lets you still live well, take vacations, save money, and enjoy your life.
Our tools at House Karma help you:
- Compare total ownership costs between different homes
- Estimate utilities and upkeep
- Avoid homes that will drain your budget over time
- Plan realistically for long-term financial health
Bottom Line
The real cost of owning a home is way more than the mortgage.
And if you don’t plan for it, you’ll feel it fast.
So, before you fall in love with the kitchen island or the pretty backyard, do the math.
Ask questions. Get the utility history. Plan for maintenance.
And most importantly, make sure you’re buying a home that supports your life — not one that slowly takes it over.
We’ll help you every step of the way.
