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any buyers fixate on the monthly mortgage because it’s the most visible number that keeps them from owning a home. Yet within a year or a decade, most are blindsided by a leaking roof, a sudden insurance hike, or a tax bill that far exceeds their expectations. The mortgage is only the base of the cost pyramid; everything above it—insurance, taxes, repairs, utilities, HOA fees—must be budgeted for as well.

    “Your mortgage payment is a floor, not a ceiling,” says Cody Schuiteboer, president and CEO of Best Interest Financial. He urges buyers to view the mortgage as the starting point and to leave ample room for the additional expenses that will accumulate over time.

    ### Insurance: The Biggest Budget Shock in 2026

    Insurance premiums have surged nearly 70 % since 2021 and are projected to climb another 16 % by 2027. Rising construction costs, increased weather‑related risks, and stricter underwriting are driving rates higher. Even in stable markets, insurers can raise premiums by 8 %–10 % next year. In distressed areas, increases can reach 18 % without any claims being filed.

    Homeowners can lower costs by raising deductibles or shopping for better rates, but these tactics often create coverage gaps. The safest approach is to treat insurance as a regular, sizable expense from the outset.

    ### Property Taxes: A Persistent Pressure

    Property taxes remain a major pain point. While some states have enacted relief measures, most homeowners will still feel the squeeze from rising bills. Assessments rarely drop even if market values soften, and millage rates—applied to the assessed value—tend to stay steady or rise as local governments contend with inflation and budget shortfalls.

    In Michigan, for example, property taxes are capped at 5 % or the inflation rate during ownership, but when a home is sold the taxable value resets to the State Equalized Value (50 % of the sale price). This can cause a sudden jump in taxes that many first‑time buyers are unaware of. Buyers should calculate taxes using the State Equalized Value and the local millage rate, not the prior owner’s assessed value, and should appeal if the city over‑assesses their property.

    ### Maintenance: The Most Underestimated Cost

    Maintenance is often the most misunderstood expense. The common rule of 1 % of a home’s value per year is usually insufficient. In today’s market, with higher labor and material costs and aging homes, 2 % is a low estimate, and 4 % may be necessary for older homes in colder climates. Maintenance costs are irregular; a home may go years with minimal needs and then require $10,000–$20,000 in urgent repairs. Roofs with 18 of 25 years remaining can cost $15,000–$25,000 in five to seven years.

    Skipping a home inspection to save money can lead to costly surprises, such as a $12,000 HVAC system discovered at closing.

    ### HOA Fees: Low Dues Can Hide Big Problems

    Homeowners association (HOA) dues are often treated as a stable monthly payment, but they can mask deferred maintenance and future special assessments. In New York City, co‑ops and condos have separate tax bills and deductible maintenance portions. Special assessments—one‑time fees for major repairs—can add thousands to a homeowner’s costs with little warning. Even in suburban or master‑planned communities, low HOA dues may indicate an underfunded association that will raise fees dramatically when postponed repairs finally occur.

    ### The Bottom Line: Extra Monthly Costs

    Experts estimate that homeowners should budget an additional $1,400 to $3,750 per month beyond the mortgage to cover insurance, taxes, maintenance, utilities, and HOA fees. These costs scale with home price, so a more expensive home means higher monthly carrying costs.

    For a $300,000 home, typical monthly expenses might look like this:

    - Property taxes: $425

    - Insurance: $142

    - Maintenance reserve: $500

    - Utilities (gas, electric, water, trash): $350

    - Total: $1,417 (excluding mortgage)

    For a $625,000 home with a 6 % mortgage and 10 % down, the mortgage alone is $3,750, but the total monthly housing cost rises to $5,065 once taxes ($625), insurance ($170), and maintenance ($520) are added.

    These examples illustrate that while the mortgage may get you into the door, the recurring and unpredictable costs ultimately determine whether you can afford to stay. Buyers should treat the mortgage as the base of a larger financial structure and plan for the full spectrum of homeownership expenses.