How Much Does It Cost to Buy a House? The Full Cost Breakdown

Buying a house costs a lot more than the sticker price and the down payment. Between closing costs, moving, inspections, insurance escrow, and the first year of maintenance, most buyers spend an extra 3–7% of the purchase price on top of their down payment (CFPB) — then take on monthly carrying costs that run 25–40% higher than the mortgage payment alone. This guide walks through every cost with real numbers at three price points ($300,000, $400,000, and $500,000). If you want the process alongside the numbers, start with our step-by-step guide to buying a house.

Key Takeaways

• Upfront costs typically run 5–25% of the purchase price: a down payment of 3–20%, closing costs of 2–5% of the loan amount (CFPB), and $2,000–$5,000 in inspection, appraisal, moving, and pre-approval fees.
• On a $400,000 home with 10% down, expect $50,000–$65,000 at closing and $2,800–$3,400/month for principal, interest, taxes, insurance, PMI, and maintenance.
• Closing costs range from ~1% (Missouri, Indiana) to over 5% (Delaware, New York, Pennsylvania) (Bankrate) — always request a Loan Estimate before committing.
• Ongoing costs add $800–$1,500/month on top of P&I. Freddie Mac's 1% maintenance rule is a floor for newer homes and often too low for homes over 20 years old.
• The three biggest hidden costs are utility deposits ($200–$800), immediate repairs the inspection missed ($1,000–$10,000), and year-two escrow shortages after a tax reassessment.

The Short Answer: What It Costs to Buy a House

Total cash to close equals the down payment plus 2–5% of the loan amount in closing costs plus $2,000–$5,000 in one-time move-in expenses. Monthly ownership then adds 25–40% to your principal-and-interest payment through taxes, insurance, PMI (if you put less than 20% down), and maintenance.

On a $400,000 home with a 10% down payment ($40,000) and a 30-year fixed mortgage at 6.9%:

• Upfront cash to close: $50,000–$65,000 (down payment + $8,000–$18,000 in closing costs + $2,000–$5,000 in move-in one-timers)
• Monthly ownership cost: $2,800–$3,400 (principal, interest, property tax, homeowners insurance, PMI, and a maintenance reserve)

Two things drive most of the variance: the state you buy in (closing costs and property taxes span a 3–5x range) and the age and size of the home (older, larger homes need bigger maintenance budgets).

Upfront Cash vs. Monthly Cost — Two Separate Buckets

Most cost articles conflate these two numbers. They shouldn't. Upfront cash is what you need on closing day; monthly cost is what you need in your paycheck every month after. A buyer with $80,000 saved but a $75,000 income can close on a house they can't afford to keep. Budget both, separately.

Upfront Costs of Buying a House

Everything you pay before or at closing. Assuming a $400,000 purchase price with 10% down, here's the itemized picture:

Down Payment (3–20% of the Purchase Price)

The down payment is the largest single line item for most buyers. Conventional loans start at 3% for first-time buyers, FHA loans require 3.5% with a 580 credit score, and VA and USDA loans allow 0% down for eligible buyers. The trade-off: a smaller down payment means a larger loan, higher monthly payments, and PMI until you reach 20% equity. For a full breakdown of what to save before you shop, see our guide to how much money you need to buy a house.

Closing Costs (2–5% of the Loan Amount)

Closing costs are the fees, taxes, and prepaid items that settle at the closing table. The CFPB Loan Estimate itemizes every line, and the Closing Disclosure — required 3 business days before closing — locks in the final numbers. On a $360,000 loan, typical components include loan origination (0.5–1% of loan), appraisal ($400–$700), title search and insurance ($1,000–$3,000), recording and transfer taxes ($50–$4,000 depending on state), escrow or attorney fees ($500–$2,000), prepaid interest, the first-year insurance premium, and 2–6 months of property tax reserves. For the deep dive on every line item, see the complete guide to mortgage closing costs.

Earnest Money, Inspection, Appraisal, and Application Fees

Earnest money is the good-faith deposit with your offer — 1–3% of the purchase price, held in escrow and credited at closing. You forfeit it if you back out outside your contingencies. A standard home inspection runs $300–$500, with specialty inspections (sewer, radon, termite) adding $100–$300 each. Appraisal fees run $400–$700. Pre-approval and application fees range from $0 to $500 — compare Loan Estimates from at least three lenders since rate differences dwarf application-fee differences.

Moving Costs ($500–$5,000+)

Local DIY moves with a rental truck run $500–$1,500. Full-service local movers charge $1,500–$4,000. Long-distance moves (500+ miles) run $3,000–$10,000.

Worked Examples at Three Price Points

Same math applied at three price points. All examples assume 10% down, a 30-year fixed rate of 6.9%, national-average property tax (1.1%), a $1,900/year insurance premium, and PMI at 0.5% of loan balance per year.

Two takeaways: upfront cash scales linearly with price, but monthly cost doesn't — in a high-tax state like New Jersey the property-tax line doubles, and in a low-insurance state it drops by a third. Adjust for your state before you commit to a savings target. Curious how these numbers stack against building from scratch? Compare against the cost of building vs. buying a house.

Ongoing Costs After You Close

Everything you pay every month or year to own the house, not to buy it.

Mortgage Principal and Interest (P&I)

Principal and interest are set by your loan amount, interest rate, and term. On a 30-year fixed loan at 6.9%, every $100,000 borrowed adds roughly $659 to your monthly payment. Freddie Mac's Primary Mortgage Market Survey publishes the current 30-year fixed rate weekly — the reference point most lenders quote against. Before you shop, use our affordability guide to figure out the loan size your income can carry.

Property Taxes

Property taxes average about 1.1% of home value nationally (Tax Foundation), but the range is wide — from 0.28% in Hawaii to 2.23% in New Jersey. On a $400,000 home, that's $1,120/year in Hawaii or $8,920/year in New Jersey — an $8,000/year swing on the exact same house. Property tax is escrowed monthly through your lender.

Homeowners Insurance

The national average premium is roughly $1,900/year in 2026, up more than 20% since 2023 (Insurance Information Institute). Premiums vary with home value, construction, location, and deductible level. Flood insurance is a separate policy — required in FEMA-designated flood zones — and runs $700–$1,500/year on top of standard coverage.

PMI (Private Mortgage Insurance)

Conventional loans with less than 20% down require private mortgage insurance, which typically costs 0.3–1.5% of the loan amount per year (Freddie Mac). On a $360,000 loan, that's $90–$450/month. PMI drops off automatically under the Homeowners Protection Act once your loan-to-value ratio hits 78%. For the full mechanics, see our guide to how mortgage insurance (PMI) works.

HOA Fees (If Applicable)

Roughly 30% of U.S. housing stock sits inside a homeowners association, with a median HOA fee of $291/month (Foundation for Community Association Research). Condo fees typically run higher — $400–$800/month is common — because condos share more infrastructure. HOA fees are not escrowed; you pay the association directly.

Maintenance and Repairs (the 1% Rule)

Freddie Mac's guidance is to budget 1% of the home's value per year for routine maintenance (Freddie Mac). On a $400,000 home, that's $4,000/year or ~$333/month, covering HVAC service, gutter cleaning, small repairs, and gradual system replacement. The 1% rule is a floor, not a ceiling: homes 10–30 years old often need 1–2%, and homes over 30 years old regularly hit 2–4%. Add $500–$2,000/year for pools, wells, or septic. Zillow research consistently shows that new buyers underestimate maintenance by 30–50% (Zillow Research).

Utilities

Utility spending for a single-family home runs $400–$600/month, covering electric, gas, water, sewer, trash, and internet. Climate is the biggest variable — cooling a 2,500-square-foot home in Phoenix in summer regularly pushes the electric bill alone past $300/month.

How Costs Vary by State

Closing costs, property taxes, and insurance vary 3–5x across the U.S. Here's the picture at both ends, using ClosingCorp state data reported by Bankrate:

On a $400,000 purchase, moving from Missouri to Delaware raises your closing-cost line from about $3,600 to about $22,800 — a $19,000 swing driven mostly by transfer taxes and mortgage-recording fees.

The Hidden Costs Most Buyers Miss

Five costs that never show up in the "how much does it cost" articles — and that catch nearly every first-time buyer off guard.

Utility Deposits and Setup Fees ($200–$800)

Power, gas, water, internet, and trash providers often require a deposit for new customers without local payment history. Deposits run $50–$300 per utility and are refunded after 12 months of on-time payments. Cable and internet install fees add another $50–$200 per line. Budget $200–$800 across all providers for the first month.

Immediate Repairs and Safety Items ($1,000–$10,000)

Inspections catch big problems but miss the small ones that add up. Re-keying locks ($100–$300), a failing water heater ($1,200–$3,000), missing GFCI outlets ($200–$500), radon mitigation ($800–$2,500), HVAC service ($200–$600), and tree work ($500–$3,000) are typical first-month expenses. Zillow found that most buyers spend $3,000–$5,000 on immediate-need repairs in year one (Zillow Research).

Furniture, Window Coverings, and Year-Two Escrow

A bigger home means more rooms to fill. Blinds and curtains alone can run $2,000–$5,000 for a full house; moving from an apartment to a 3-bedroom home usually adds $5,000–$15,000 in furniture and basic appliances. Year-two escrow is the other trap: your first-year escrow is based on the seller's tax bill, which was set at a lower assessed value. After the county reassesses (usually 12–18 months in), your monthly payment can climb $100–$300.

HOA Special Assessments

HOAs collect regular dues, but big-ticket items — roof replacement, elevator overhaul, siding — trigger special assessments on top of dues. These one-time charges can run $2,000–$20,000 per owner and pass on a board majority vote. Before you close, request the HOA's reserve study and the last three years of meeting minutes.

How to Budget for the Full Cost Stack

Three practical rules: (1) target 25–30% of gross income on total housing cost — PITI plus HOA plus maintenance, not just the mortgage; (2) hold 3 months of PITI in a housing reserve after closing, roughly $8,000 on a $2,800/month payment; (3) read the Loan Estimate on day 3 and cross-check it against the Closing Disclosure 3 days before closing. Any material line that changes between the two is a reason to push back. The CFPB's Loan Estimate guide shows exactly what each line means.

How Opendoor Helps Buyers Control Costs

Opendoor listings include full cost context up front — property tax history, HOA dues, and neighborhood-level comps — so buyers can budget the ongoing cost before making an offer. Eligible buyers who use Opendoor Home Loans also receive a lender credit that offsets a portion of closing costs at close. Opendoor isn't the right fit for every buyer or every home; it works best when you're shopping in one of Opendoor's active markets and want a buying experience with cost transparency built in.