17 Homeowner Expenses to Budget for — on Top of Your Mortgage

You’ve spent months — years even — saving up for a down payment for a house. You’ve budgeted meticulously, banking savings whenever you could to make homeownership possible.

After reaching that goal, you may feel like the pressure to budget and save is gone. But don’t get too comfortable.

17 Hidden (But Typical) Homeowner Expenses

When you purchase a home, it’s not just the monthly mortgage payment or down payment you need to think about. Here are 17 additional expenses to consider — ranging from property taxes to homeowners insurance to maintenance and repair costs.

1. Property Taxes

Property tax information is a public record, so you can look up how much previous owners were taxed in the past. However, keep in mind taxes can fluctuate from year to year as home values ​​and millage rates change.

2. Homeowners Insurance

Homeowners insurance generally protects against losses or damages to your home and belongings, plus liability coverage for accidents that may occur on your property. What your homeowners insurance covers will differ based on your policy — as will the cost.

Like taxes, homeowners insurance is often folded in your mortgage and held in an escrow account. If not, you’ll want to divide your annual insurance bill by 12 and put that amount aside monthly.

3. Private Mortgage Insurance

If you’re getting a conventional mortgage – as in not an FHA loan or VA loan – you’ll have to pay private mortgage insurance (PMI) if your down payment is less than 20% of the purchase price. This insurance is to protect the lender in case you stop making payments.

PMI usually costs 0.22% – 2.25% of your mortgage. You don’t have to pay it for the life of your mortgage, in most cases, though. Once you’ve made enough mortgage payments to build at least 20% equity in the home, PMI can be removed.

Payments are due monthly and are factored into your mortgage payments.

4. Mortgage Insurance Premiums

If you have an FHA loan, you…

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