• Omega Financial Mortgage

More Than Just a Mortgage: The True Cost of Owning a Home

If you’re purchasing a home, your monthly mortgage payment will likely be your biggest financial consideration. However, that’s far from the only expense you’ll need to budget for. Buying—and owning—a home will come with plenty of different costs from the day you sign the paperwork all the way up until the day you sell and move into your next home.


Let’s take a closer look at some of these costs:


Upfront One-Time Costs: Beyond the costs associated with the act of financing a home purchase—such as closing costs—you’ll also have a few one-time expenses that you’ll need to plan for. These costs may include relocation costs (your moving company), furnishing and decorating costs (new furniture, curtains, etc.), remodeling costs (new deck, carpeting, etc.), and installation costs (alarm system, cable tv, etc.).


“Hidden” Costs: These “hidden” costs aren’t actually hidden, but rather costs that you may not see or even realize that you're paying. The two biggest types of hidden costs are property taxes and homeowner’s insurance. Both of these costs can vary greatly depending on the type of home you buy and the area that it’s located in. For example, homeowner’s insurance can be quite expensive in areas that are prone to hurricanes or flooding.


Reoccurring Everyday Costs: These are costs that you can easily budget for as they occur on a regular basis for as long as you own the home. Your monthly mortgage payment can be classified in this category, as well as all of your utilities and homeowners’ association fees, if applicable. Also, if you are paying private mortgage insurance (PMI), this will be a cost you’ll need to consider on a regular basis, although you may not be required to pay PMI for the full term of your mortgage.


Maintenance Costs: Depending upon the condition of your home, maintenance costs may not add up to very much (at least at first) or they may be a large chunk of your homeowner expenses. Not only will you have regular wear and tear—such as needing new appliances or needing to re-paint the interior—but you’ll also have continuing maintenance costs such as landscaping upkeep and HVAC system maintenance.


Unplanned Costs: For some homeowners, this is the biggest cost associated with owning a home. Unfortunately, it’s impossible to budget for unforeseen problems. These unplanned expenses may include weather-related disasters (flooding, downed trees or roof leaks), termites or other pests, or large repair issues such as structural/foundation problems or issues with mold. Even though you can’t plan for any of these problems, you can put aside money as an emergency fund.


Although all of these costs may seem a bit daunting, don’t let it scare you into not buying a home. With a little planning ahead and a solid budget, all of these costs and expenses can be very manageable.



For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.


Licensed by the Commissioner of Banks - License No. MB2671


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