🇺🇸 US · figures as of 2026-06
Real Estate

Home Buying True Cost Calculator

The mortgage is just the beginning. See your complete Year 1 cost — closing costs, PMI, property taxes, insurance, HOA, and maintenance — broken down by item, percentage share, and monthly equivalent.

Updates as you type NAR · CFPB · Tax Foundation data Print or copy results
Purchase Details Loan structure
$
US median: $419,300 (NAR Q1 2026)
First-time buyers avg: 6–8%. ≥20% eliminates PMI.
30-yr national avg: ~6.85% (Freddie Mac, Jun 2025)
15-yr saves ~40% total interest but costs ~30% more monthly.
Closing Costs One-time at settlement
National range: 2–5% of loan. Ask about seller concessions.
$
Home inspection: $300–500. Appraisal: $300–600. Never skip.
Ongoing Annual Costs Recurring expenses
US avg: 1.07%. NJ highest (2.47%), HI lowest (0.29%).
$
US avg: $1,687/yr ($140/mo). Higher in FL, TX, LA.
Applies if down payment <20%. 0.5–1.5% typical. Auto-zero if ≥20% down.
$
US avg for condos/townhomes: $200–300/mo. Zero for most single-family.
1% rule — older homes or harsh climates: use 1.5–2%.
$
Local move: $800–2,500. Long-distance: $2,000–10,000. Plus appliances, blinds, etc.
Year-One True Cost of Buying
—
beyond mortgage principal repayment · updates instantly

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Full Year-One Cost Breakdown

The deposit is not the cash you need

The costs on top of the deposit are substantial and, unlike the deposit, cannot be borrowed. Transfer or stamp duty, legal fees, searches, surveys, mortgage arrangement fees and moving costs all have to be paid from savings on completion.

How much varies enormously by country — under 1% of the price in some markets and well over 5% in others, with transfer tax the main reason for the spread. Buyers who budget only for the deposit find this out late, which is when it is most expensive to discover.

The first year after you move

Two things catch new owners out. The first is furnishing an empty house, which is a larger number than expected when appliances, curtains and flooring are all needed at once.

The second is maintenance, which no longer has a landlord attached to it. A common planning figure is around 1% of the property value a year, though it does not arrive evenly — several quiet years then a boiler or a roof. Older properties run higher, and a survey is the cheapest way to find out which sort you are buying.

The survey is the cheapest money you will spend

A full structural survey costs a few hundred to around a thousand and is the only step in the process that can save five figures. A lender's valuation is not a survey — it establishes that the property is worth what is being lent against it, and nothing about its condition.

Findings are also negotiable. A survey identifying significant work frequently pays for itself several times over in a reduced price, and occasionally does something more valuable by stopping the purchase.

What lenders look at beyond the deposit

  • The loan-to-value band. Rates step down at thresholds — often 90%, 85%, 80%, 75% — so a small increase in deposit that crosses a band can cut the rate meaningfully, while a larger increase that does not cross one changes little.
  • Affordability, not just the deposit. Lenders stress-test against a higher rate than the one you are offered, which is what usually sets the ceiling on borrowing.
  • Mortgage insurance. Where the deposit is below a threshold, an insurance premium is added, and in some countries it is substantial enough to change what you should buy.
  • Committed outgoings. Car finance, loans and credit limits reduce what you can borrow, sometimes by more than their monthly cost suggests.
Data sources & methodology: Closing cost rates from CFPB Loan Estimate data and lender surveys. Property tax rates from Tax Foundation 2024. PMI rates from Urban Institute. Maintenance estimates from Harvard Joint Center for Housing Studies. Results are estimates for informational purposes only — not financial or legal advice. Full disclaimer →

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Frequently asked questions

What are the hidden costs of buying a home beyond the down payment?
Beyond the down payment, year-one costs typically include closing costs (2–5% of the loan), prepaid property taxes and homeowners insurance, PMI if you put down less than 20%, moving and setup costs, and a maintenance reserve (budget about 1% of the home value per year). These can add up to tens of thousands of dollars in the first year alone.
How much are closing costs on a house?
Closing costs usually run 2–5% of the loan amount, covering lender origination fees, title insurance, escrow, appraisal, and transfer taxes. On a $400,000 loan that is roughly $8,000–$20,000. Some fees are negotiable, and sellers can sometimes be asked to contribute.
When do I have to pay PMI, and how do I get rid of it?
Private mortgage insurance (PMI) is generally required when your down payment is under 20%. It typically costs 0.5–1.5% of the loan per year. Lenders must automatically cancel it once you reach 22% equity on the original schedule, and you can request cancellation at 20% equity.
How much should I budget for home maintenance each year?
A common rule of thumb is 1% of the home value per year for maintenance and repairs, though older or larger homes often cost more. On a $400,000 home that is about $4,000 annually for upkeep and eventual big-ticket replacements like roofs and HVAC.

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Data reference (United States): NAR; CFPB closing costs; CoreLogic property tax · figures as of 2026-06 · Compiled from official public sources via AI-assisted research; latest available data, not individually verified - general information, not advice.. See our methodology for how every figure is sourced and dated.

🔒 Calculations run 100% in your browser — we never see your numbers 📊 Built on primary-source data (see references above) 🔄 Reviewed 2026 · methodology · disclaimer