Start with the monthly number, end with a price range
The budget that sits next to the mortgage
The short version
A loan quote covers the loan, taxes and insurance. Owning also brings utilities, repairs, upkeep, furnishing and sometimes a longer commute. List those costs alongside the rest of your life before you choose a housing number, so the payment you pick still leaves money for everything else.
Last reviewed against the primary sources listed below.
Costs to list before you shop
- Utilities that a landlord may have covered: water, trash, sewer, sometimes gas.
- Routine upkeep: filters, gutters, yard care, pest control.
- A repair fund for roofs, heating and cooling, water heaters and appliances.
- Furnishing and moving in.
- Commute changes, school costs, and any change in childcare.
Turning the list into a monthly figure
Divide yearly or occasional costs by twelve. Round up rather than down; most first-year owners find surprises. Freddie Mac's owning guides list common maintenance tasks by season.
How much to save as a first-time buyer
Three pots matter: the amount you will bring to closing, closing costs themselves, and reserves you keep afterwards. Your Loan Estimate shows the first two; the reserves guide covers the third.
You asked, we answered
How much to save for a house first time buyer?
Plan for three amounts: what you will bring at closing, the closing costs shown on your Loan Estimate, and the reserves you want to keep afterwards. The right total depends on the loan program and your own comfort level.
What costs come with owning that renting does not?
Repairs, upkeep, some utilities, property tax and homeowners insurance usually move from the landlord to you.