Buying a home is a major financial milestone and at Polam Federal Credit Union, we’re proud to help our members every step of the way. While most buyers focus on their monthly mortgage payment, it’s important to understand that owning a home comes with additional expenses that can affect your overall budget.
To help you plan wisely, here’s a breakdown of common costs beyond the mortgage that every homeowner should be aware of:
Property Taxes
Property taxes vary by location and are usually based on the assessed value of your home. These taxes can increase over time and are often built into your monthly mortgage payment through an escrow account.
💡 Tip: Research local tax rates before buying to avoid surprises later.
Homeowners Insurance
Protecting your investment with homeowners’ insurance is essential and often required by lenders. The cost depends on the home’s value, location, and coverage type.
💡 Consider bundling your home and auto insurance for potential savings.
Maintenance & Repairs
Unlike renting, when you own a home, you’re responsible for all upkeep. From leaky faucets to roof repairs, the costs can add up quickly.
💡 Rule of thumb: Set aside 1–3% of your home’s value annually for maintenance expenses.
HOA Fees
If your home is in a community with a Homeowners Association (HOA), you may owe monthly or annual fees for services like landscaping, security, or shared amenities.
💡 Always review HOA rules and costs before making an offer.
Utilities & Services
Utility bills often rise when you move into a larger home. Electricity, water, gas, internet, trash collection, and sewer services all add up—especially in older homes or during extreme weather months.
💡 Check average utility costs in your target area ahead of time.
Home Improvements
Many homeowners want to make updates, whether cosmetic or structural. Remodeling kitchens, installing new floors, or even painting can require a significant financial investment.
💡 A Home Equity Line of Credit from Polam FCU can help when you’re ready.
Homeownership is a rewarding journey but being prepared is key. At Polam FCU, we’re here to guide you through it all, from your first mortgage to long-term financial planning. Our mortgage specialists can help you understand every aspect of home buying, including what it truly costs to own a home.
Polam Federal Credit Union – more than banking, we’re your financial partner for life.