Before deciding how much house you can afford, you need to understand the additional monthly costs of owning a home. It’s not just principal and interest – there are many other costs to consider.

Private Mortgage Insurance

If you have less than 20 percent to put down on a home, chances are you will likely pay some insurance. Private Mortgage Insurance (PMI) is the most common of these insurances you will likely pay, unless you are enrolled in the USB First-Time Home Buyers program, which enables first-time home buyers who qualify to put down 10.10 percent without the need to pay PMI. Your PMI costs will depend on your insurer, the cost of your home and your down payment. If you anticipate putting down less than 20 percent, make sure you calculate this cost ahead of time.

Property Taxes

Your property taxes will also come into play when evaluating the monthly costs of owning a home. In fact, you will likely consider this well before purchasing a home as property taxes can differ greatly between towns and may influence where you decide to buy.


In addition to your homeowners insurance policy, your home may require other types of insurance coverage. If you’re in a flood zone, you may need to protect your home with flood insurance. If you live in a heavily wooded area, you might want to consider a homeowners policy with falling object coverage. Buyers in different parts of the country may find the need for more extensive coverage. These all contribute to the monthly costs of owning a home, so make sure you take them into consideration during your house hunt.

Home Owners Association or Condominium Fees

If you are considering buying a condo, you will likely need to include condo or monthly HOA fees in your home expenses. Condo fees help the property owners maintain the buildings, amenities, outdoor spaces and other aspects of condo living.

You may also find that some of the homes you look at require monthly HOA fees if they are incorporated into a homeowners association. The services covered by paying these fees may include, but are not limited to, things like snow removal, trash and recycling pickup, water and sewage maintenance and other types of neighborhood upkeep.

While mortgage payments and property taxes are some of the mandatory monthly costs of owning a home, there are some optional monthly home expenses that can make your job as a homeowner easier. These expenses could include lawn maintenance, housekeeping and grocery delivery services. Take a close look at these costs before you buy and make sure that any additional fees can be worked into your budget.

Want to learn more about balancing your mortgage and other monthly home expenses?
Contact our mortgage team today.



Rachael: Hi Patty.

Patty: Hello Rachael.

Rachael: Thank you for joining us today. You are the Vice President of Residential Sales for Union Savings Bank and I’m looking to buy my first home. What other types of monthly costs are involved aside from my monthly mortgage payment?

Patty: Ah, that’s a good question. So there are other fees involved, it depends on what you’re purchasing. If you’re purchasing a condo, there could be condo association fees, and there will be condo association fees. In many cases, purchasing a home, if you’re buying in an association, there may be some association fees, so you need to look for that. Also, a home vs. a condo, you will have homeowner’s insurance. There’s also, you could have private mortgage insurance if it’s not a first time homebuyer program and there’s private mortgage insurance involved.

So sort of to sum that up, I would say you’d be look at your principal and interest payment, plus your taxes you know your taxes to the town or city that you’re going to be living in as well as you know homeowner’s insurance and or a condo association fee. So it really depends on what you’re purchasing.

Rachael: Okay, thank you so much for your insight, it’s really helpful.

Patty: You’re welcome.


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