What is "besides the actual mortgage payment?

Beyond the mortgage payment, several other expenses can significantly impact your overall housing costs. Here's a breakdown:

  • Property Taxes: These are annual taxes levied by local governments based on the assessed value of your property. They fund local services like schools, fire departments, and infrastructure.

  • Homeowner's Insurance: This protects your home and belongings from damage or loss due to events like fire, theft, and natural disasters. It's usually required by lenders.

  • Private Mortgage Insurance (PMI): If you put down less than 20% of the home's purchase price, your lender will likely require PMI. It protects the lender if you default on the loan.

  • Homeowners Association (HOA) Fees: If your property is part of an HOA, you'll pay monthly or annual fees. These fees cover maintenance of common areas, amenities, and potentially other services.

  • Maintenance and Repairs: Owning a home means taking responsibility for its upkeep. Budget for routine maintenance (e.g., landscaping, gutter cleaning) and unexpected repairs (e.g., leaky roof, broken appliances).

  • Utilities: These include essential services like electricity, gas, water, sewer, and trash collection. Costs can vary greatly depending on location, home size, and usage.