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Complete costs of buying a home, from down payment to maintenance (and more)

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What It Really Costs to Buy a Home in 2025 – A Quick Guide

If you’re looking to step into homeownership this year, the excitement can quickly be eclipsed by a litany of fees that pop up on the price tag. The Local 12 “Money” team has broken down every dollar you’ll need to spend beyond the price of the house itself, from the first down‑payment to the ongoing monthly bills that will keep that house a home. Below is a full, 500‑plus‑word recap of the key points, with extra nuggets from the links they shared for anyone who wants to dig deeper.


1. The Down‑Payment – Your First Big Chunk

The article starts by highlighting the most obvious hurdle: the down‑payment. For a $300,000 home, most conventional loans require a 20 % down‑payment, or $60,000. Local 12 points out that many buyers use a lower amount (5 %–10 %) and take out private mortgage insurance (PMI) to cover the lender’s risk. While this reduces the upfront cash outlay, the monthly PMI premium can add $20–$60 a month to the mortgage, depending on loan size and lender.

A handy link in the piece directs readers to a mortgage calculator that lets you swap down‑payment percentages and see how PMI, interest rates, and loan term affect your monthly payment. The calculator is built into Local 12’s own site, but the same logic applies to any tool you prefer.


2. Closing Costs – The “Hidden” Fees

The article then explains that closing costs can consume an extra 2 %–5 % of the home price. For our $300,000 example, that’s $6,000–$15,000, and they’re split between buyer and seller (though the exact split depends on the contract). Typical closing items include:

CostTypical %Example (on $300k)
Title search & insurance0.5 %$1,500
Appraisal fee0.3 %$900
Home inspection0.2 %$600
Survey0.2 %$600
Attorney / escrow fees0.3 %$900
Credit report0.1 %$300
Lender origination0.5 %$1,500
Recording & transfer taxes0.5 %$1,500

The article also notes that some of these can be negotiated or even waived (e.g., if the seller is in a tight market). The Local 12 link to a “Closing Costs Breakdown” article gives a printable table you can bring to the negotiation table.


3. Mortgage Insurance (PMI) – The Long‑Term Cost

If you put less than 20 % down, the lender will likely require private mortgage insurance. PMI can run from 0.5 % to 1.0 % of the loan amount annually. Local 12 explains that most lenders allow you to cancel PMI once you’ve paid down 20 % of the original loan amount (or 22 % if you’re a veteran). The article suggests keeping an eye on your equity and requesting a removal notice when you’re close to that threshold.


4. Property Taxes – The Year‑Long Ongoing Expense

The article stresses that property taxes are often the single biggest recurring cost. The amount depends on your state, county, and the assessed value of your property. Local 12 offers a link to a state tax rates table that lets you estimate your annual bill. On a $300,000 home, with an average 1.2 % tax rate, that’s about $3,600 per year, or $300 a month.

Because tax rates can rise or fall, the article recommends factoring in a 1–2 % annual increase when budgeting for your first few years of homeownership.


5. Homeowners Insurance – Protecting Your Investment

Unlike mortgage insurance, homeowners insurance is usually required by lenders and is paid quarterly or annually. The article cites average premiums of about $1,200–$1,800 per year for a typical single‑family home in the U.S. Local 12 includes a link to an “Insurance Comparison Tool” that lets you input your zip code, home value, and coverage needs to get quotes from multiple carriers.

It also notes that bundling homeowner’s insurance with auto insurance can lead to discounts, and that increasing your deductible can reduce your premium by up to 20 %.


6. Maintenance & Repairs – The “Hidden Ongoing” Expenses

Even after the mortgage and taxes are paid, the article warns that you’ll need to budget for upkeep. The National Association of Home Builders estimates that the average homeowner spends roughly 1 % of the home’s purchase price per year on maintenance. For a $300,000 home, that’s $3,000 annually, or $250 a month. This budget should cover routine tasks such as HVAC filter changes, roof inspections, gutter cleaning, and minor repairs.

The Local 12 article links to a “First‑Time Home Buyer Maintenance Checklist” that gives a calendar of tasks and approximate costs.


7. Utilities & Other Monthly Bills

Beyond mortgage and taxes, you’ll need to pay for utilities: electric, water, sewer, trash, internet, cable, and sometimes homeowner association (HOA) fees. The article estimates an average of $200–$300 per month for utilities, depending on location and climate. The link to the Utility Cost Estimator on Local 12’s site lets you input your home size, location, and number of occupants for a more precise estimate.


8. Tips to Reduce Your Costs

To wrap up, the article offers a handful of practical strategies:

  1. Shop for a lower interest rate – Even a 0.25 % decrease saves thousands over 30 years.
  2. Ask the seller to cover some closing costs – Especially in a buyer’s market.
  3. Use a lender who offers “no‑closing‑cost” mortgage options – These move the closing fees into your loan.
  4. Consider a “bi‑weekly” payment schedule – Over a 30‑year loan, this reduces interest and shortens the term by ~2 years.
  5. Get a home warranty – Covers major appliance failures for an annual premium (often $400–$800).

The article links to a “First‑Time Home Buyer Checklist” that consolidates all these strategies, and to a “Mortgage Refinance Guide” for those who want to lock in lower rates after their first few years.


Bottom Line

Buying a home isn’t just about finding a property you love; it’s about knowing every cost that comes with it. Local 12’s guide walks you through down‑payments, PMI, closing costs, taxes, insurance, maintenance, utilities, and beyond—complete with calculators, comparison tools, and checklists to keep you ahead of the game. Whether you’re a first‑timer or a seasoned buyer looking to refresh your budget, this article (and its linked resources) gives you a clear, dollar‑by‑dollar roadmap to homeownership.



Read the Full Local 12 WKRC Cincinnati Article at:
[ https://local12.com/money/mortgages/costs-of-buying-a-home ]