3 Hidden Costs of Home Ownership

Purchasing a house requires an investment from you as a buyer. You will need at least a 3-5% down payment unless you are a Veteran going VA or are buying in a rural location with USRD. However that’s not all you’ll need. There are also hidden costs to home ownership.

Unless the seller helps with closing costs that will be additional, as well the appraisal and home inspection. Once you have purchased the house you’ll also want to make sure that you’ve set aside some additional funds for home maintenance. While these may all be costs you were aware of, what are the hidden costs of owning a house? Below are 3 hidden costs of home ownership.

Mortgage Interest

Mortgage interest is the interest you pay to the bank in order to get the loan for your house purchase. It is calculated as a percentage of the total loan amount for the mortgage that was given to you through the lender. At the beginning of the loan a larger portion, almost 50% of your payment goes directly toward the interest.

You can never get rid of mortgage interest from your loan but it’s possible to reduce the length of time paying it. To get rid of your mortgage at a faster rate, make one extra payment a year. Then you can chop off years from your loan. Home ownership is a goal that can be achieved.

HOA Dues

If you own a home in an HOA you will have an additional monthly or yearly fee. HOA fees are disclosed when you purchase your house or condo but the fees can increase over time. Make sure to look at the budgets and reserves of the Association before you decide to purchase a house or condo.

Special assessments can also be added on to your fees if there isn’t enough money to cover needed repairs. This is usually an additional fee that is charged to the owner over a period of time, from only a few months to several years.  If an Association doesn’t have enough in reserves for maintenance such as roof, septic or siding it could be costly to you as the owner. HOA fees typically cost home owners $250 to $450 every month.

Security Features

After you purchase a new house it’s best to make sure that no one else has access to it. The doors should be rekeyed or new locks should be installed. If you have a security system, garage door openers or keyless entry it’s in your best interest to reprogram all of the entry points as soon as you purchase the home. There’s just no way to know how many people have had or still have a key to your house. So it’s in your best interest to get it done for your own safety.

There are easy how to videos that can even show you how to do it yourself. I've included some how to videos below for use on how to reprogram your garage door opener or rekey your doors.

The extra hidden costs of home ownership can be a hassle but it’s definitely worth it. Home ownership is the American dream after all! Just make sure to plan in advance for a few bumps in the road, even if you don’t plan on it.