When it comes to buying and owning a home, there can be a number of expenses to plan for beyond your initial down payment and closing costs. From one-time purchases associated with the move to recurring expenses you can work into your monthly budget, here’s what to know about the many costs involved with owning a home. 

New furniture and moving costs: Once you close on your home, the next step is moving in – and that could mean paying for movers or buying new furniture. You can expect to pay anywhere between $1,000 and $2,000 for a short-distance move, or $4,000 to $5,000 for a long-distance move, according to a Forbes estimate. Furniture costs can also add up, depending on your needs and style. 

Home maintenance: While you never know exactly how much you’ll need to spend on home maintenance, a general rule of thumb is to budget 1% to 4% of your home’s value per year. For a $300,000 home, that means setting aside $3,000 to $12,000 per year, or $250 to $1,000 per month. 

While that may seem like a lot, things can add up quickly, from taking care of your lawn to fixing (or replacing) an appliance. Regular maintenance, upkeep and inspections can help prolong the condition of your home and cut down on unexpected emergencies. 

Homeowners insurance: One cost you can plan for is your homeowners insurance – though insurance premiums have risen significantly in recent years due to inflation and other factors. That’s why it’s a good idea to shop around and get multiple quotes to make sure you have the right coverage at the best possible price. 

Utilities: Another expense you can budget for is your utilities, such as water, sewer, trash and recycling. Depending on where you live, your utilities may be bundled together into one monthly bill, or they may be billed separately. Figure out how much to expect each month, and then build that into your monthly or annual budget. 

HOA fees: Condo owners or anyone who lives in an association can expect to pay a monthly Homeowners Association (HOA) fee, which can cover a range of services including maintenance, amenities, security, utilities and more. 

These are just a few examples of how the cost of owning a home extends far beyond your initial purchase. That’s why it’s important to not just save for buying a home, but to make sure you’re ready to own a home, as well.

This article was published in the Mortgage Summer Newsletter 2025.

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