+$500/mo in hidden costs
Real costs of a mortgage: beyond the payment
Your monthly principal-and-interest payment is only part of the true cost of homeownership. Property taxes typically add $250-$500/month on a $300,000 home, insurance another $83-$250/month, mortgage insurance (if down payment is under 20%) varies by lender, and maintenance averages roughly 1% of home value per year. Budget for the full cost, not just the loan payment.
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Try calculatorKey takeaways
04 · ideas- Property tax: $250–$500/mo on a $300k home
- Homeowner's insurance: $83–$250/mo
- Mortgage insurance if down < 20%: varies
- Maintenance: ~1% of home value/year
Illustrative chart
$200k · 7.5% · 30yr
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Your P&I payment (principal + interest) is just the start. A home also requires:
- Property tax — paid monthly via escrow, ~1–2%/year of home value
- Homeowner's insurance — required by lender, ~$100–250/month
- PMI — required if down payment < 20%, ~$50–200/month
- Maintenance — budget 1% of home value per year
On a $300,000 home, these can add $500–900/month on top of your P&I payment.