Understanding the True Costs of Homeownership

Becoming a homeowner is a milestone that many aspire to achieve. It offers a sense of pride, security, and the opportunity to build equity. However, while the dream of owning a house is appealing, it's crucial to understand the full spectrum of costs associated with homeownership.

Beyond the down payment and closing costs, there are several ongoing expenses that may come with owning a house. In this blog article, we'll delve into these additional costs to help you feel prepared for your home purchase.


Transitioning from renting to homeownership often means dealing with higher utility bills. Single-family homes typically have more square footage to heat, cool, and power. The average annual energy bill for a single-family home in Texas for 2023 is around $2,856. Be sure to budget for this increase in utility costs.

Home Insurance and Property Taxes

The cost of home insurance coverage can vary based on factors like the age of your home and the presence of features like a pool. On average for 2023, homeowners in Texas pay around $243 per month for insurance. If you live in a flood-prone area, you may also need to consider separate flood insurance.

Property taxes are an unavoidable expense for homeowners. These taxes can fund community services like schools, police, and fire departments. The median property tax in Texas for 2023 is $2,275 but may vary depending on the location and value of your home.

Home Security

Home security is a priority for many homeowners, and the costs can add up. Depending on the provider and the features you choose, installing a home security system can cost several hundred dollars upfront, with monthly monitoring fees averaging anywhere from $20 - $60.

Homeowner's Association (HOA) Fees

About 20% of homes in Texas are part of a homeowner's association, which often comes with monthly fees. These fees may cover amenities like pools, parks, and security services, and average for 2023 around $389 per month nationwide. If you're considering a home with an HOA, make sure you understand the associated costs and factor them into your budget.

Emergency Repairs and Maintenance

As a homeowner, you'll be responsible for unexpected repairs like a broken dishwasher or a leaky roof. It's wise to set aside between one and 4 percent of your home's value each year to cover unforeseen expenses.

Regular maintenance is essential to keep your home in good condition. This includes tasks like pest control, lawn care, and HVAC servicing. While each service comes with its own price tag, regular maintenance can help reduce wear and tear and prevent more costly repairs down the road.


Home upgrades and renovations are optional but can enhance your living experience and increase your home's value. Consider budgeting for planned improvements or explore options like cash-out refinancing if you've built up equity in your home.


While homeownership comes with added costs, it can be a financially sound decision for those who are prepared. Owning a home can provide stability by locking in your monthly housing expenses.

 At Supreme Lending, we understand that every homebuyer's journey is unique. Whether you're looking for low or no down payment loans, or customized guidance, our experienced mortgage professionals are here to assist you in finding affordable mortgage solutions. Contact us today to start your path to homeownership.