# The true cost of owning a home | Should I Rent or Buy

Source: https://shouldirentorbuy.org/guides/true-cost-of-owning-a-home/

# The true cost of owning a home

The mortgage payment is only part of the bill. Here is each cost, whether you get it back, and where to find a real number.

| Cost | Recoverable? | Where to get a real number |
| --- | --- | --- |
| Principal | Yes, as equity when you sell | Loan Estimate, amortization schedule |
| Interest | No | Loan Estimate from each lender |
| Property tax | No | County assessor or the listing’s tax history |
| Homeowners insurance | No | Quotes from insurers for the address |
| PMI | No | Loan Estimate, page 1 (monthly) or page 2 (up front) |
| HOA dues | No | HOA budget and disclosures |
| Maintenance and repairs | Partly, if they add value | Home inspection report, age of roof and systems |
| Closing costs | No | Loan Estimate and Closing Disclosure |
| Selling costs | No | Agent agreement, transfer taxes where they apply |

Owner costs at a glance

The CFPB says a PMI premium appears on page 1 of the Loan Estimate and Closing Disclosure when paid monthly, and on page 2 when paid up front. [1](#fn1)

## Questions

### What costs come with owning besides the mortgage?

Property tax, homeowners insurance, maintenance and repairs, HOA dues where they apply, private mortgage insurance on a small down payment, utilities a landlord may have covered, and closing and selling costs.

### How much should I budget for maintenance?

There is no official figure. Many budgets use a percentage of home value per year; the calculator’s example uses 1 percent. Older homes, larger homes, and harsh climates usually need more.

Related: [Break-even and price-to-rent](https://shouldirentorbuy.org/guides/break-even-and-price-to-rent/) · [Method](https://shouldirentorbuy.org/method/)

1. CFPB, “What is private mortgage insurance?”, [https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/), read November 11, 2026. [↩](#c1)

## Price it, then test it

Put each number into the calculator’s owner-cost fields. Small changes in tax or insurance can move the break-even year.

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