Complete Costs of Buying a Home

How Much Does a House Cost?

The median home sales price nationally is $422,800, according to May 2025 data from the National Association of Realtors (NAR).

However, your actual home price can vary significantly depending on your location, home size, condition and the current market. You can use the NAR's interactive median home price map to learn more about the area you're interested in.

Upfront Costs of Buying a House

When you buy a home, you'll need to budget for several upfront expenses before you get the keys. Here's what to prepare for.

Down Payment

A down payment is the amount you pay upfront toward the purchase price of the home. The minimum down payment requirement can vary depending on the type of loan you're planning to use:

Keep in mind, though, that it's often better to put more than the minimum down. On a conventional loan, for instance, you can avoid private mortgage insurance (PMI) if you put down 20% of the purchase price or more.

A higher down payment can also lower your monthly payment and potentially even reduce your interest rate. Think carefully about your situation and financial goals to determine the right down payment amount for you.

Learn more: How Much Is a Down Payment on a House?

Closing Costs

Mortgage closing costs typically range from 2% to 5% of the purchase price. Here are some of the more common closing costs you may face:

• Origination fees: These are lender fees that cover some of the costs associated with underwriting your application and originating your loan. Examples include credit report fees, appraisal fees, processing fees and prepaid interest.
• Settlement and title fees: These fees are assessed by the title company that helps finalize your home purchase. Examples include document preparation and delivery fees, title insurance, survey fees and settlement expenses.
• Third-party fees: These are fees charged by other involved parties, such as homeowners association (HOA) dues, prepaid homeowners insurance, home warranty premiums and home inspection fees.
• Taxes and government fees: These include prepaid property taxes, recording fees and mortgage surcharges.

It's important to note that some closing costs can be negotiated with the lender. Therefore, it's crucial that you shop around and compare interest rates, fees and other loan terms to ensure you're getting the best possible deal.

Moving Costs

The cost of moving depends on distance, the amount of stuff you're relocating and whether you hire professional movers. Some expenses to budget for include:

• Truck rental
• Short-term storage
• Cleaning services
• Packing services
• Movers
• Insurance
• Supplies
• Pet care

For a local move, you can expect to pay between $501 and $2,988 or more, according to Moving.com. Hiring a moving company to help with the labor can cost between $38 and $75 per mover per hour.

For a long-distance move, the cost can range from $1,123 to upwards of $14,107, with expenses depending on how far you're moving and the size of your home.

Learn more: How to Avoid Unexpected Moving Costs

Ongoing Costs of Home Ownership

Once you've moved in, your monthly and annual housing costs go well beyond your mortgage payment. Here's what to plan for.

Mortgage Payments

Your mortgage payment includes principal and interest on your loan. Payments depend on your loan amount, interest rate and term.

As an example, let's say you take out a $400,000 loan with a 6% fixed interest rate and a 30-year repayment term. Using a mortgage calculator, you'll get a monthly payment of $2,706.54.

Mortgage calculator

Mortgage Insurance

Most home loan programs have a mortgage insurance component that can impact your monthly payment. Here's what to expect based on the type of loan you're considering:

• Conventional loan: The cost of PMI can range from 0.2% to 2% of your loan balance each year. You can avoid PMI by putting 20% down on your purchase. But, if you don't, you can get it dropped later once your loan-to-value ratio reaches 80%.
• FHA loan: The annual mortgage insurance premium (MIP) on loans backed by the Federal Housing Administration (FHA) can range from 0.15% to 0.75% of your loan amount, depending on your repayment term, down payment amount and base loan amount. Those terms will also determine whether MIP is dropped after 11 years or remains for the life of the loan.
• VA loan: Loans backed by the Department of Veterans Affairs (VA) require an upfront funding fee when you close, but there is no ongoing mortgage insurance requirement.
• USDA loan: With a loan backed by the U.S. Department of Agriculture (USDA), you'll pay an annual guarantee fee to the tune of 0.35% of the loan balance. There's no way to remove this ongoing charge.

Learn more: How to Get Rid of Private Mortgage Insurance

Homeowners Insurance

Your lender will typically set up an escrow account to handle homeowners insurance premiums, breaking down the annual amount due into monthly installments and including them in your mortgage payment.

The average cost of homeowners insurance can vary depending on the value of your home and any additional coverage you add. Here's a look at national averages for different coverage amounts, according to Insurify:

Source: Insurify.com

That said, what you pay for homeowners insurance will depend on several factors, such as where you live, the size and condition of your home, claims history, coverage and deductibles and possibly even your credit score.

Because each insurance company weighs risk differently, it's critical to shop around and compare multiple insurers to find the best coverage for the right price.

Learn more: Factors That Impact the Cost of Homeowners Insurance

Property Taxes

As with homeowners insurance, property taxes are paid annually but are included in your mortgage payment in monthly installments.

Depending on where you live, property tax rates may range from 0.5% to 2.5% of your home's assessed value, which is typically lower than the home's market value.

Your property tax is typically calculated by multiplying your home's assessed value by the local tax rate.

To find your property tax rate, start by visiting your local county assessor's website or calling the office directly. Many counties have online tools that let you search for your property by address or parcel number to see your current tax rate and bill.

Learn more: What to Expect for Your First Tax Season as a Homeowner

Repairs, Maintenance and Upgrades

Even newer homes can require repairs and other maintenance. If you plan to renovate, those costs should also be factored into your long-term budget.

The average spending on such home services was $13,667 in 2023, according to Angi. That includes $9,542 in home improvements, $2,458 in maintenance costs and $1,667 in emergency repairs.

It's best to budget for these expenses ahead of time to avoid needing to dip into other financial goals or rely on debt to manage your costs.

HOA fees

If your new property is located in an HOA, you may be subject to an initial fee plus ongoing monthly dues. The upfront fee is typically two to three months' worth of the ongoing dues.

Average HOA fees can vary depending on the type of property you own, with averages typically in the $200 to $300 range. However, they can go as low as $50 or as high as $1,000 per month for luxury or high-cost communities.

Learn more: Should You Buy a Condo or a House?

Total Home Costs Example

Assuming a sales price of $400,000, here's what your home-related expenses might look like:

With this basic example, the upfront costs are upwards of $57,000, and your ongoing monthly costs are close to $4,500.

The Bottom Line

Buying a home is a major financial commitment, and the true cost of homeownership goes well beyond the sticker price. By understanding all the upfront and ongoing expenses, you can budget more accurately and avoid financial stress.

Before you start house hunting, consider checking your credit. A higher credit score could help you secure a lower interest rate and reduce your monthly mortgage payment. Experian's free credit monitoring tool can help you track your FICO^® Score^Θ and keep an eye on changes to your Experian credit report so you're ready when the right home comes along.