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Homeownership comes with a long list of expenses, some of which new homeowners don’t always plan for. When calculating your budget, it’s important not to overlook any costs so they don’t catch you by surprise.

7 Expenses Every Homeowner Should Expect

The following are the primary expenses you should expect if you own a home.

Property Taxes

When researching the housing market, property taxes should be high on your list of points to consider. Each locality has its own property tax rate. There’s a close correlation between property taxes and schools, so parents and future parents may be willing to pay a little more in property taxes if an area has good schools.

Mortgage Payments

The vast majority of people who buy homes take out a loan to fund their purchase. The typical mortgage takes 30 years to pay off, so this is an expense that you’ll have for a long time.

Private Mortgage Insurance

Many home loans come with the requirement that you have private mortgage insurance (PMI). This is an insurance policy that protects the lender in the event that you are unable to keep up with mortgage payments.

Homeowners Insurance

Many types of insurance are optional but if you buy a home you will need to insure it. Insurance is a requirement for getting a loan from a bank or mortgage company. Insurance is essential to protect you from fire, theft, and other dangers. You should also consider purchasing additional insurance for natural disasters, structural damage, flooding, and other possibilities that are a threat in your area.


Utility bills include electric, gas, water, and internet. Your particular monthly bills will depend on the location, climate, and preferences but everyone has ongoing utilities for which they must plan in their budget.

Home and Property Maintenance

Your home and property will need regular maintenance. Some of these costs can be minimized if you handle them yourself. Even then, however, you’ll need to buy and maintain the tools and appliances. These include:

  • Lawn and garden maintenance.
  • Snow removal.
  • Pest control —prevent infestations of pests such as termites.
  • Cleaning —You may want to hire a cleaning service.
  • Painting —Interior and exterior painting is recommended every 5 to 10 years.
  • Cleaning out gutters.
  • Roof repair and maintenance.

Emergency Expenses

You should always have some money put aside for emergencies. By definition, you can’t predict when an unexpected event will occur. For example, you may face repairs due to a weather event, termites, mold, or other causes. You can protect yourself from many emergency expenses with more comprehensive insurance plans. On the other hand, you can’t plan for everything so an emergency fund is always good to have.

These are some of the most common expenses that most homeowners will have to budget for. Make sure you account for any additional expenses you may have. For example, if you have a pool it will need regular maintenance. When you consider buying a home, make sure you compose a comprehensive list of the expenses you will face.

Whether you are new or experienced in the home buying process, Covenant Homes is here to help you. Contact us today to learn more.

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