What Does It Really Cost to Own a Home?

Buying a home is one of the most exciting—and important—financial decisions you’ll ever make. While many people focus on the monthly mortgage payment, the true cost of homeownership includes a variety of other expenses that can add up quickly.

As a Realtor who helps buyers and investors across Central Florida, I want you to feel confident and prepared. So let’s break down what it really costs to own a home—and why it’s still one of the smartest long-term investments you can make.

The Real Costs of Homeownership

🏡 1. Mortgage Payments

Your monthly mortgage payment includes more than just repaying the loan. You’ll also be paying:

• Principal – the original amount you borrowed

• Interest – the cost of borrowing from your lender

• Property Taxes – which vary depending on your location

• Homeowners Insurance – required by most lenders

• PMI (Private Mortgage Insurance) – if your down payment is under 20%

💵 2. Down Payment & Closing Costs

Most buyers need to bring money to the table when buying a home, including:

• Down Payment – typically between 3%–20% of the purchase price, depending on your loan

• Closing Costs – which may include lender fees, title fees, inspections, and more (usually 2%–5% of the home’s price)

🧰 3. Maintenance & Repairs

Unlike renting, homeowners are responsible for all maintenance and repairs. This includes everything from lawn care and AC tune-ups to roof repairs and plumbing issues. A good rule of thumb is to budget 1%–2% of your home’s value per year for maintenance.

💡 4. Utilities & HOA Fees

Utilities (electric, water, trash, internet, etc.) are often underestimated in a homeowner’s budget. If your home is part of a homeowners association (HOA), you’ll also have monthly or quarterly dues that may cover amenities or exterior maintenance.

The Benefits: Why Owning Still Makes Sense

While the costs are real, so are the benefits. Owning a home can help you build wealth in several ways:

📈 Appreciation

Over time, most homes increase in value—especially in high-demand areas like Davenport, Celebration, or the greater Orlando market. This growth builds home equity, which can later be tapped into or realized through a profitable sale.

🏠 Rental Income

Many buyers explore investment properties or short-term rentals to create income-producing opportunities, especially with Central Florida’s booming tourism industry.

💰 Tax Advantages

Homeowners may qualify for tax deductions on mortgage interest, property taxes, and more. If you rent the property, you may also be able to deduct depreciation and expenses.

🔐 A Hedge Against Inflation

As costs rise over time, a fixed-rate mortgage remains stable—helping you protect your monthly expenses while your property potentially grows in value.

Is Homeownership Right for You?

If you’re thinking about buying a home, I’d love to help you navigate the process. Whether it’s your first home or your next investment property, I’ll walk you through the numbers, connect you with a trusted lender, and help you find the perfect fit.

📩 Let’s connect and chat about your goals—and the steps to make them a reality.