Enrichment · Life Skills · Homeownership

The mortgage is
only the start.

Taxes, insurance, repairs, dues and utilities come with every house. Put them beside the mortgage payment and see what a year of owning really costs.

Add up my yearWhat you get

The homeownership annual cost estimator

The worked example is a $400,000 townhouse with 20 percent down at 6.5 percent. Nothing you type leaves this browser.

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What you get

Enrichment · Life SkillsFree

What you finish with
The monthly mortgage payment, the year’s interest and principal, every cost for the year, the yearly and monthly total and the cost of owning beyond the equity you build. It prints as a one-page budget.
Who it is for
Adults and families deciding whether a home fits their budget, new owners planning their first year, and students learning what owning a home costs beyond the price.
Format
Browser calculator for a phone, tablet or computer, by touch or keyboard. Prints a summary; downloads a spreadsheet (.csv); export and import a file.
Access
Free. No account, no sign-in and nothing to install. Everything you type stays in this browser; nothing is sent to Caveat.
Where it lives
The Life Skills space in Caveat Enrichment.
Support
Questions, a correction or a request: team@caveatacademic.com.

How to use it

  1. Type the price and the loan.
  2. Add tax and insurance.
  3. Set a maintenance allowance.
  4. Add dues, utilities and the rest.
  5. Read the cost beyond equity.

Add up my year

How the year is added up

The loan formula, then every cost on a yearly footing.

The worked example: a $400,000 townhouse with 20 percent downMortgage payment$2,022.62$320,000 at 6.5%, 30 yrsPlus tax and insurance$6,400a yearPlus upkeep and bills$10,920maintenance, dues, utilitiesA year of owning$41,591$3,577 of it equityThe worked example: a $400,000 townhouse with 20 percent downMortgage payment$2,022.62$320,000 at 6.5%, 30 yrsPlus tax and insurance$6,400a yearPlus upkeep and bills$10,920maintenance, dues, utilitiesA year of owning$41,591$3,577 of it equity
The mortgage payment is the start. Property tax, insurance, upkeep, dues and utilities often add as much again, and only the principal part of the payment comes back to you as equity.

The payment and equity

A level monthly payment covers the month’s interest and pays down some of the loan. Early on, most of it is interest. As a check: $320,000 at 6.5 percent for 30 years is $2,022.62 a month; in the first year about $20,700 of the $24,271 paid is interest and about $3,580 pays down the balance.

Upkeep and the rest

Housing agencies suggest setting aside about 1 to 2 percent of the home’s value a year for maintenance and repairs, more for an older home. Property tax and insurance are often paid through the lender’s escrow account, which is why a quoted payment can include them; here they are listed on their own.

Sources

  1. Consumer Financial Protection Bureau. Owning a home: understanding your monthly payment, escrow and mortgage insurance (consumerfinance.gov/owning-a-home).
  2. U.S. Department of Housing and Urban Development. Buying a home: the costs of ownership (hud.gov).
  3. Fannie Mae. HomeView: budgeting for homeownership and maintenance (fanniemae.com).
  4. Federal Reserve Board. Consumer guide to mortgage insurance and escrow accounts (federalreserve.gov).

An estimate from the figures you type; taxes, insurance and repair costs vary widely by place and by house. Your entries stay in this browser. Support: team@caveatacademic.com.