Free calculator for first-time homebuyers

See what your home
really costs

Mortgage calculators lie by omission. We show the full picture — taxes, insurance, PMI, maintenance, and every hidden cost that surprises first-time buyers.

JM
SK
AL
RT

Trusted by 10,000+ homebuyers

Your home details

Adjust to see your true costs update instantly

Property

$50,000$2,000,000
$
yrs

Financing

($35,000)
3%50%
Below 20% requires PMI
2%12%

Compare

$
$

True Monthly Cost

$3,258

vs $2,069 mortgage only

+57% hidden costs

Cash at Closing

$51,500

down payment + closing + repairs

Breakeven Point

27.7 yrs

buying vs. renting breakeven

Mortgage (P&I)
64%$2,069
Property Tax
16%$525
Insurance
8%$267
PMI
3%$105
Maintenance
9%$292
Total Monthly$3,258

$1,188/mo in hidden costs

That's 57% more than a mortgage-only estimate of $2,069. This is what most calculators don't show you.

Payment Distribution

Where your money goes each month

10-Year Projection

Monthly cost by year (PMI drops at 20% equity)

Affordability Check

Risky
0%28% guideline50%

Your housing costs are 37% of income. This significantly exceeds the recommended 28% guideline.

Based on the 28/36 rule: housing costs under 28% of gross income.

Assumptions & methodology
  • •Property tax rates are state-level averages. Your actual rate may vary by county.
  • •Home insurance uses state averages. Get quotes for accurate pricing.
  • •PMI rates estimated from LTV ratio and credit score range.
  • •Maintenance: 1%/yr (new), 1.5% (10-20 yr), 2% (20+ yr). Condos at half, townhouses at 75%.
  • •Rent vs. buy assumes 3% appreciation, 3% rent/insurance/HOA increases, 7% investment returns.
  • •For educational purposes only. Consult a financial advisor before purchasing.

The True Cost of Buying a Home: What Most Calculators Miss

Most online mortgage calculators show you one number: your monthly principal and interest payment. But that number can be 30-50% lower than what you'll actually pay each month. The true cost of homeownership includes property taxes, homeowner's insurance, private mortgage insurance (PMI), HOA fees, and ongoing maintenance — costs that add hundreds or even thousands to your monthly budget.

TheHomeCost calculator was built to give first-time homebuyers the full picture. We use real property tax rates and insurance averages for all 50 states, credit-score-based PMI rates, and age-adjusted maintenance estimates so you can see exactly how much cash you'll need at closing and what your true monthly payment will be.

What's Included in Your True Monthly Cost

  • Mortgage principal & interest — The base payment on your loan, determined by your home price, down payment, interest rate, and loan term (15 or 30 years).
  • Property taxes — Varies dramatically by state, from 0.28% in Hawaii to 2.40% in New Jersey. On a $350,000 home, that's anywhere from $82 to $700 per month.
  • Homeowner's insurance — Required by all mortgage lenders. State averages range from $92/month in Oregon to $350/month in Florida.
  • Private mortgage insurance (PMI) — Required when your down payment is less than 20%. Costs depend on your credit score and loan-to-value ratio, ranging from $50 to $500+ per month.
  • HOA fees — Common for condos and townhouses, typically $200-$500/month, covering shared maintenance, amenities, and exterior upkeep.
  • Maintenance & repairs — The general rule is 1% of your home's value per year for newer homes, increasing to 2% for homes over 20 years old.

Understanding Your Upfront (Closing) Costs

Beyond the down payment, buyers need to budget for closing costs that typically run 2.5% to 3.8% of the purchase price depending on your state. These include loan origination fees, appraisal costs, title insurance, attorney fees, prepaid taxes and insurance, and various other fees. For a $350,000 home, expect to bring $45,000-$55,000 in total cash to the closing table (including your down payment).

Rent vs. Buy: When Does Buying Make Sense?

Our rent vs. buy comparison factors in home appreciation (3% annually), rent increases (3% annually), equity buildup, and the opportunity cost of investing your down payment in the stock market (7% returns). The breakeven point — when buying becomes cheaper than renting — is typically 4-8 years, but varies significantly based on your local market, interest rate, and rent level.

The 28/36 Rule: How Much House Can You Afford?

Lenders and financial advisors recommend the 28/36 rule: your total housing costs (mortgage, taxes, insurance, PMI, and HOA) should not exceed 28% of your gross monthly income, and your total monthly debt payments should stay below 36%. Our affordability check automatically calculates your front-end ratio so you can see if a home is within your budget or if you're stretching too thin.

Frequently Asked Questions

What is the true cost of buying a home?

The true cost goes far beyond the mortgage payment. It includes property taxes (0.28% to 2.40% of home value depending on state), homeowner's insurance ($1,100 to $4,200/year), PMI if your down payment is under 20%, HOA fees, maintenance (1-2% of home value annually), and closing costs (2.5-3.8% of purchase price). For a $350,000 home, hidden costs typically add $500-$1,500+ per month beyond the mortgage.

How much does it really cost to buy a $350,000 house?

With 10% down at 6.875% interest (30-year fixed), your mortgage payment alone would be about $2,068/month. But the true monthly cost including taxes, insurance, PMI, and maintenance is $3,000-$3,500/month depending on your state. You'll also need $45,000-$55,000 in cash at closing for the down payment, closing costs, moving expenses, and immediate repairs.

What are the hidden costs of buying a home?

Hidden costs include: property taxes ($980-$8,400/year for a $350K home depending on state), homeowner's insurance ($1,100-$4,200/year), PMI ($100-$500/month if down payment is under 20%), maintenance and repairs (1-2% of home value/year), HOA fees ($200-$500/month for condos), closing costs (2.5-3.8% of price), and immediate repairs for older homes ($2,000-$8,000).

Is it cheaper to rent or buy a home?

It depends on how long you plan to stay, your local market, and current interest rates. Buying typically becomes cheaper than renting after 4-8 years when you account for equity buildup, home appreciation (3%/year), rent increases (3%/year), and the opportunity cost of your down payment. Use our rent vs. buy tab to calculate your personal breakeven point.

How much should I spend on a house based on my income?

The 28/36 rule recommends your total housing costs (mortgage, taxes, insurance, PMI, HOA) stay under 28% of gross monthly income, and total debt under 36%. With $8,000/month gross income, aim to keep housing costs under $2,240/month. Our calculator automatically checks your affordability ratio.

What is PMI and when can I stop paying it?

Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It costs 0.15% to 1.90% of the loan amount annually, based on your credit score and loan-to-value ratio. PMI is automatically removed once you reach 20% equity in your home, which happens through a combination of paying down your mortgage and home appreciation.

How much are closing costs by state?

Closing costs range from about 2.5% in states like Alabama, Indiana, and Wyoming to 3.8% in New York. For a $350,000 home, that's $8,750 to $13,300 in closing costs alone — on top of your down payment. Closing costs include loan origination fees, appraisal, title insurance, attorney fees, prepaid taxes, and prepaid insurance.

How does credit score affect home buying costs?

Your credit score directly impacts your PMI rate and can indirectly affect your mortgage interest rate. For PMI, the difference between a 760+ score and a 620-639 score can mean paying 0.55% vs. 1.90% of your loan amount annually — a difference of over $350/month on a $315,000 loan. Higher credit scores mean significantly lower monthly payments.