Deciding if you're financially ready to buy a house? It's important to account for both the upfront costs of homebuying and the expenses you'll need to budget for after closing.
Saving up for initial costs like the down payment is pretty major, but you also need to brace your bank account for the bills you'll pay every month — plus unexpected expenses that, as a homeowner, are now your responsibility.
If you're thinking about becoming a homeowner, here's a rundown of the costs of buying a house.
How much does a house cost?
In June 2026, the median price for existing homes was $429,300, according to data from the National Association of Realtors.
But housing prices vary across the U.S. The NAR reports these median prices by region, as of June 2026:
Northeast: $534,900
Midwest: $336,300
South: $373,100
West: $625,900
Unless you’re paying cash, you won’t pay for your new house all at once — you'll get a mortgage. But you’ll still need some cash on hand when you close on the sale. Exactly how much depends on the total purchase price of your home.
DATA: What's the Homebuying Climate this month?
NerdWallet's Homebuying Climate Index puts a familiar weather label on how favorable conditions are for home buyers.
For August, our analysis puts the Climate Index at 53.2 out of 100, keeping the index in Partly Cloudy territory for the 49th straight month as most variables hold relatively steady.
Read more about the factors affecting this month's index to gauge how they might affect your homebuying plans.
One-time costs of buying a house
Down payment
💵 Cost: On average, 10% of purchase price (for first-time buyers)
The down payment always looms large for folks considering buying a home. The good news? Though a 20% down payment would enable you to skip mortgage insurance — more on that below — putting 20% down isn't required. In 2025, the average down payment was 10% for first-time buyers, per NAR statistics.
Depending on the type of home loan, your down payment could be as low as, well, nothing.
Conventional loans can allow for down payments as low as 3%.
FHA loans, which are backed by the Federal Housing Administration, can have down payments as low as 3.5%.
VA loans, which are guaranteed by the U.S. Department of Veterans Affairs, allow service members and veterans to get home loans with 0% down.
USDA loans, from the U.S. Department of Agriculture, let buyers in rural areas pay as little as 0% down.
Down payments can be a bit of a compromise, balancing what you can reasonably save with your desire to buy a home sooner rather than later. If you need a boost in the down payment department, explore local and state assistance programs.
» MORE: Ways to save for a down payment
Closing costs
💵 Cost: 2%-6% of the loan amount
Closing costs are lender and third-party fees paid at the close of a real estate transaction — in other words, they're part of the money you pay the day you sign all the paperwork and get the keys.
The buyer is responsible for most closing costs, though the seller typically pays a few, such as commission for the real estate agent and a real estate transfer tax.
Closing costs are generally 2% to 6% of the loan amount. For a $450,000 home loan, you could expect to pay $9,000 to $27,000 in closing costs.
Closing costs can include:
Lender fees (origination, application, credit check and so on)
Prorated property taxes, homeowners insurance and homeowners association fees
Real estate attorney fees
Additional closing costs for government-backed purchase loans
Loan type | Additional fee | Cost |
|---|---|---|
FHA loan | Upfront mortgage insurance payment | 1.75% of loan amount |
VA loan | 1.25% to 3.3% of loan amount | |
USDA loan | Guarantee fee | No more than 3.5% of the loan amount |
You can often roll these upfront costs into your loan. That means lower costs at closing, but you'll pay interest on those fees over time.
Once you're preapproved, your lender must give you a Loan Estimate outlining all closing costs. This document will also make clear which costs you can shop around for and which are non-negotiable.
Moving
💵 Cost: Under $2,600 for most local moves; higher for longer distances or heavier loads
Relocating is a cost, too, whether it's across the country or across town. Professional movers cost more than a DIY move, but you might find the convenience to be worth the price.
HomeAdvisor reports that local moving costs typically range from about $900 to $2,600. Costs go up from there if you’re traveling a greater distance, such as out of state. Long-distance moves can easily climb into the thousands.
You’ll also pay more if you have more stuff to haul or are using additional services such as packing or unpacking, assembling furniture or moving oversized items (like a piano or swingset). Moving costs are higher during times of peak demand, such as summer weekends.
If you're doing it yourself, your out-of-pocket costs will be lower (though your back might not be happy!). But you’ll still have to budget for packing materials, such as boxes and tape.
Example: Upfront costs of buying a $450K house
Based on the estimates above, let’s look at what upfront costs you might have on a $450,000 house.
Item | Low estimate | Medium estimate | High estimate |
|---|---|---|---|
Down payment | $13,500 (3%) | $40,500 (9%) | $90,000 (20%) |
Closing costs | $8,730 (2% of $436,500 loan) | $16,380 (4% of $409,500 loan) | $21,600 (6% of $360,000 loan) |
Moving expenses | $900 | $2,500 | $6,000 |
Total | $23,130 | $59,380 | $117,600 |
The initial costs of homeownership are just the beginning. Next, let’s estimate some of the routine expenses you can expect after you become a homeowner.
Ongoing homeowner expenses
Mortgage payments
💵 Cost: National median is roughly $2,200 per month
Your mortgage payment will probably be your biggest ongoing expense as a homeowner. Mortgage payments include the principal, or the amount you borrowed to buy the home, as well as interest.
In May 2026, the median monthly mortgage payment was $2,198, according to data from the Mortgage Bankers Association. That said, costs for mortgage principal and interest will vary widely based on the price of your house, the cost of living in your area and your mortgage interest rate.
Typically, your mortgage payment amount won't change over time. The exception is an adjustable-rate mortgage or if you choose to refinance. But how much goes toward principal vs. interest shifts over time. This is called amortization.
Buying a less expensive home is the primary way to keep your mortgage payments low, but affordable houses are scarce in many markets.
Regardless of your home's price tag, you can rein in your monthly mortgage payments by comparing multiple mortgage lenders to get the best interest rate. (You can also hire a mortgage broker to do the comparison shopping for you.) Though fractions of a percentage point might seem like small differences, they could save you hundreds of dollars per year — and over the life of a loan, that can really add up.
» MORE: Calculate your mortgage payment
Property taxes
💵 Cost: National median is 0.79% of property value
Property taxes are generally due once or twice a year, but property tax laws and policies vary by state and county. You can find local tax information online to help determine whether a town or neighborhood will be in your price range.
In 2024 (the most recent available data), the national median effective property tax rate was 0.79%, according to the Tax Foundation. New Jersey and Illinois had the highest state average at 1.88%, and Hawaii had the lowest state average at 0.29%.
Local governments can raise property taxes to cover municipal projects or expenses, so don’t assume yours will hold steady. Increases in a home’s assessed value, whether due to renovations or overall market conditions, can also cause property taxes to rise.
Many homeowners opt to have their mortgage servicers pay property taxes on their behalf, keeping the money in an escrow account. That means if your property taxes increase, your monthly mortgage payment will go up in order to cover the tax bill.
» MORE: Can you deduct property taxes?
Homeowners and hazard insurance
💵 Cost: Average is $2,490 per year
Like taxes, these two types of insurance vary by state and region and can also be paid by your lender from an escrow account. According to NerdWallet's analysis, the average cost of homeowners insurance is $2,490 a year. The cost of hazard insurance, which is generally part of homeowners insurance policies, is determined by the risk factors in your area, such as floods and earthquakes.
You can usually keep your costs lower if you bundle homeowners with your auto or life insurance policies.
Mortgage insurance
💵 Cost: 0.15% to 1.5% of the loan amount annually
Depending on the type of loan you used to buy your home and the size of your down payment, you may need to pay for mortgage insurance. Mortgage insurance protects the lender if you can't pay back your loan.
Conventional loans: If you make a down payment of less than 20% on a conventional loan, you’ll have to pay private mortgage insurance, also known as PMI. The typical cost of PMI ranges from 0.46% to 1.5% of the original loan amount annually, according to the Urban Institute's Housing Finance Policy Center.
PMI payments are generally included in your monthly mortgage payment. Once you have at least 20% home equity, mortgage insurance can be canceled.
FHA loans: With an FHA loan, the rules are a bit different. On top of the 1.75% upfront fee, you'll also pay monthly mortgage insurance. The cost runs 0.15%-0.75% of your total loan amount each year.
If you made a down payment that's less than 10%, FHA mortgage insurance lasts for the life of your loan — the only way out is to refinance to a conventional loan or sell the home. If you put down 10% or more on an FHA loan, you'll pay FHA mortgage insurance for 11 years.
VA and USDA loans don't require mortgage insurance, but you will pay a one-time funding fee, as described above.
HOA, co-op or condo fees
💵 Cost: National average is $243 per month
If you’re buying a house in a planned development with a homeowners association, or you’re buying a condo or co-op, you’ll probably have a monthly HOA fee on top of your mortgage payment. That fee pays for shared amenities, such as landscaping or pools, or maintenance and repairs to the building or shared community spaces.
In 2023, the most recent year for which data is available, the national average HOA fee was $243 per month, according to the U.S. Census Bureau's American Housing Survey.
In pricey urban areas, HOA fees can rival mortgage payments, so pay close attention to those costs before buying. Also ask whether the building needs major repairs or upgrades. If it does, you may face a special assessment — an extra bill for your share of the cost.
» MORE: Buying a condo vs. a house
Utilities
💵 Cost: At least $470 per month for basic utilities
Some monthly bills, like Wi-Fi, might not be much different from what you’d pay as a renter. Others might take a bigger bite out of your budget: Unsurprisingly, heating and cooling an entire house can cost considerably more than keeping a one-bedroom apartment comfortable.
As a homeowner, your essential utility bills might include:
Water and sewer
Home internet/Wi-Fi
You may also want to pay someone else to take care of routine maintenance that might have previously fallen on your landlord, such as snow removal, yard care or HVAC tuneups.
Maintenance
💵 Cost: 1% to 4% of your home’s value each year
Budgeting for maintenance each year can help prepare for regular upkeep. This can include services like snow removal, yard care or HVAC tuneups and fixing or replacing items that naturally wear out over time.
Home emergency fund
💵 Cost: 1% to 4% of your home’s value each year
You may want to create an emergency fund that's specifically for unexpected household maintenance — think a plumbing debacle or the fridge unexpectedly dying. Having some money set aside for these unfortunate events can help keep you from tapping into your emergency savings or taking on credit card debt.
Consider stowing at least 1% of the home's market value in savings each year as your long-term household maintenance and repair fund.
NerdWallet writer Isabella Angelos contributed to this story.
