Immediate Expenses for New Homeowners to Expect

You know you've got a mortgage. But make sure to budget these costs in as well.

Related To:

Yellow Laundry Room With Mosaic Tile

Cheerful Yellow Laundry Room

If you don’t already own them and they weren’t included in the purchase of your home, be ready to go shopping for a new washer and dryer.

From: Sarah's House

If you don’t already own them and they weren’t included in the purchase of your home, be ready to go shopping for a new washer and dryer.

After you’ve shelled out the cash for closing costs and a down payment, there are still a few more expenses to expect in addition to your monthly mortgage payment: 

  • Homeowner’s insurance. Often referred to as “hazard insurance” on mortgage documents, homeowner’s insurance protects your investment (and the lender's) from losses in the event of property damage, theft and even liability. The cost of homeowner’s insurance varies widely depending on which company and policies you choose, but you can often save money by bundling your homeowner’s insurance with your auto insurance.
  • Property taxes. For many homeowners, property taxes are the second-largest expense of owning a home (after mortgage interest). In most areas, property taxes are governed by state law, but assessed and collected by the county on an ad valorem basis (ad valorem is Latin for "according to value"). They are calculated annually by applying a certain tax rate to the assessed value of the property.
  • Private mortgage insurance (PMI). If your down payment was less than 20 percent of the mortgage value, you have to pay PMI, which protects the lender against your defaulting on the loan. This can add as much as a couple hundred dollars per month, depending on the size of your loan.
  • HOA fees. If you bought a home in a community with a homeowners association, be prepared to pay HOA fees, which cover maintenance of the community’s common areas. Fees vary widely depending on where you live and what amenities your community offers -- anywhere from $150 a month to as much as $2,000 a month for some luxury buildings in Manhattan.
  • Utilities. If you’re a former renter, you’re probably already used to paying utilities. However, extra square footage can make utility costs for a home much more expensive than an apartment.
  • Cable, Internet, telephone. In addition to the monthly costs of these services, be prepared for initial set-up costs.
  • Appliances and furniture. If you don’t already own them and they weren’t included in the purchase of your home, be ready to equip your home with furniture, appliances, window coverings, lighting and anything else you need to get settled in.
  • Home maintenance necessities. As a new homeowner, you’re now responsible for mowing your lawn, cleaning the gutters and making repairs. Be prepared to purchase a lawnmower, a set of tools and anything else you need to keep your home well maintained.

Next Up

Did I Accept a Bad Offer on My Home?

Worried you accepted a bad offer for your home? Let real estate expert soothe your fears.

Moving Day Tips: How to Pack for a Move

These 10 packing tips will help you move more efficiently and smoothly.

What Foreclosure Means and How to Stop It From Happening

Learn about the various steps in the foreclosure process and ways you can avoid losing your home.

Short Sale Rules: What You Need to Know

A short sale occurs when a property is sold for less than what is owed on the mortgage with the lender's approval. Learn the advantages and disadvantages of this type of transaction for the seller and the buyer.

The Skinny on the Short Sale

How to get a short sale when you're facing foreclosure on a house.

Advantages and Disadvantages of Buying a Home in Foreclosure

Purchasing a foreclosed home can mean getting a bargain, but there are potential pitfalls too.

Sellers: What to Do When You Can't Find a Home Before Yours Sells

If you sold your house before you've found new digs, don't worry: You have options.

How to Deal With Your Lender When Facing Foreclosure

In the foreclosure world, "workout" has nothing to do with the elliptical trainer. It's about cutting a deal with your lender to stop the foreclosure process.

How to Quickly Sell Your Home When Threatened With Foreclosure

Get tips and advice on how to sell your home fast.

Pros + Cons of Rent-to-Own Agreements for Buyers and Sellers

For both the seller and homebuyer, renting to own a house can be a dream come true — or a nightmare. Find out if this type of real estate transaction is right for you.

Go Shopping

Refresh your home with stylish products handpicked by HGTV editors.

On TV

Follow Us Everywhere

Join the party! Don't miss HGTV in your favorite social media feeds.