Budgeting for Homeownership

SMARTER SAVINGS ASSOCIATION

Preparing for Homeownership

See the full picture before you buy. Estimate your upfront costs, monthly expenses, and selling costs all in one place.

Home Purchase Price

Enter the price of the home you're considering. We'll use this to estimate your costs below.

1 Upfront Costs

What you'll need to buy the home

Down payment

Typical: 3%–20% of price

Closing costs

Typical: 2%–6% of price

First mortgage payment

Usually 1 month's payment

Escrow funding (taxes & insurance)

Typical: 2–4 months' worth

Initial repairs or upgrades

Appliances, paint, fixes

Moving expenses

Movers, supplies, deposits

Total Upfront Costs $0

2 Ongoing Monthly Costs

What you'll pay each month as a homeowner

Mortgage payment (principal + interest)

Use a mortgage calculator to estimate

Private mortgage insurance (PMI)

If down payment < 20%

Property taxes

Typical: 1%–3% of value/year ÷ 12

Homeowner's insurance

Get a quote from an insurer

HOA dues

If applicable

Maintenance & repairs

Rule of thumb: 1%–2% of value/year ÷ 12

Utilities (estimate)

Electric, gas, water, trash

Total Monthly Costs $0

3 Selling Costs (Future)

What you'll pay when it's time to move on

Closing costs (agent fees, title, etc.)

Typical: 6%–10% of sale price

Repairs required to sell

Buyer or lender requirements

Moving expenses

Movers, supplies, deposits

Total Selling Costs $0

4 The Big Picture

Cash Needed to Buy

$0

Monthly Cost of Owning

$0

Cost to Sell (Eventually)

$0

Ask yourself: Can I comfortably afford this—not just today, but years from now?

5 My Notes

Questions to ask, things to research, next steps

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Part of the Budgeting Basics series

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