Buying Is Just the Beginning. What Does It Really Cost to Own a Home?

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You’ve paid your down payment, and have been approved for an mortgage. It’s a great relief. Now the real money spending begins. You can calculate the true cost of home ownership by adding closing costs, moving costs, homeowner’s and private mortgage insurance. The study used a 30-year fixed-rate mortgage with an average interest rate of 5.26 percent for 2022. This is the typical number of years that homes in the U.S. change hands. Rates have now surpassed 7 percent. The Zillow Home Value Index was used to determine the average price of the three-bedroom home, which is valued at $355,892. It assumed that the down payment would be 13 percent – the national median rate at the time of the research. Lenders typically require P.M.I. with a downpayment of this size. This was also included. The mortgage payments alone made up $270,593, while maintenance and repairs amounted to $192,139. Utility payments came to $54,662, exceeding the initial downpayment of $46,266.

Ofcourse, these costs are not set in stone. First, there are regional variations: Hawaiians were found to spend the most ($1,482,229) over 13.2 years, while West Virginians were found to spend the least ($321,194).

Other factors that reduce costs include a larger down payment, efficient appliances, alternative energy strategies and do-it-yourself repairs. Refinancing with lower mortgage rates can make a big difference when rates fall.