Are you planning a budget for your existing home, or considering buying a home? There are plenty of mortgage calculators available online, but they don’t include all homeowner expenses. How much does it really cost to own a house? Use my Monthly Housing Costs Worksheet to help plan your monthly expenses.
The Cost to Own a House – Not Just the Mortgage
Homeownership can build net worth, provide financial stability, and even create a source of rental income. But how much does it really cost to own a house?
The cost to own a house varies, depending on the property and neighborhood. Here are the most common expenses:
- Principal and Interest – This depends on the terms of your mortgage.
- Property Taxes – Your property tax bill is usually divided into two installments, due on April 10 and December 10 of each year. You can look up the tax rate and special assessments for a property on the San Diego County Assessor’s website. Read my article about Property Tax Calculation. You can also download my Property Tax Calculation Worksheet, to help you calculate your current tax liability, and estimate tax liability for future years.
- Mello-Roos, also called Community Facilities District (CFD) Fees – These are normally added to your property tax bill. The San Diego County Office of Property Tax Services website provides a breakdown of all special assessments.
- Homeowner’s Insurance – The annual premium is paid once per year.
NOTE: Many lenders require the use of an impound account. If you have an impound account, your monthly payment to your lender includes a deposit for property taxes and homeowner’s insurance. The bank then pays your property tax and homeowner’s insurance bills on your behalf.
- Homeowner’s Association (HOA) Dues – if the property is located in a neighborhood with an HOA. Some HOAs provide services with their dues, such as water, sewer, trash, and/or landscaping.
- Utilities – if you’re on the grid, add these bills to your budget:
- Electricity/Gas
- Water/Sewer
- Trash
- Optional Services – you can survive without these, but you might not want to:
- Internet
- Cable/Satellite
- Telephone
- Alarm/Security System
- Landscaping
- House Cleaning
- Pool Cleaning
Planning Your Monthly Housing Costs – Budget Worksheet
You can print out my Monthly Housing Costs Worksheet to estimate your total cost to own a house. This can help you decide on your comfortable price range when shopping for a home. Your loan officer considers your total housing payment to include principal, interest, taxes and insurance (PITI), plus any HOA fees. I include the utilities and optional services, because they can easily add up to hundreds of dollars per month. You can also read about how lenders determine how much you can afford.
The Bottom Line
Budgeting for housing expenses can take the stress out of paying monthly bills. My Monthly Housing Costs Worksheet can help you to estimate the cost to own a house. If you’re thinking about buying a home, you can also read about the Cost to Buy a House.
Good luck, and as always, call or text me at (760) 637-7231 if you have any questions about homeownership. You can also send me a message.
