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By
Aly Yale
Edited By
Angelica Leicht
June 25, 2024 / 10:19 AM EDT
/ CBS News
The cost of buying a home encompasses more than just the interest rate and closing costs.
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Mortgage rates have been stubbornly high recently, hovering around 7% for much of 2024. Those rates have driven up monthly mortgage loan payments in turn, with the average monthly mortgage now sitting at over $2,200.
And, unfortunately for homebuyers, interest rates and loan payments aren’t the only costs you face when buying a house. The cost of buying a home can be even more expensive than that, experts say, and there are costs that may not come to mind when you’re planning to buy a home.
Find out how the right mortgage loan could help you save money now.
5 hidden expenses to watch for when buying a home, according to experts
Want to be better prepared for your home purchase? Here are the hidden homebuying costs experts say to look out for:
Moving costs
Moving expenses are a cost many homebuyers fail to plan for, according to experts.
“People prepare for the purchasing process but not for all the items that come after the signing table,” says Kristen Skebe, managing broker and real estate advisor at Engel & Volkers Atlanta. “This includes potential costs to set up utilities, moving trucks and movers, and storage unit expenses if needed. These items can be very expensive, especially when moving across state lines.”
Data from Thumbtack shows hiring movers for a local move — under 50 miles away — averages about $120 per hour. For long-distance moves, you can expect to pay more.
And while you may be able to save money by DIYing your move, it likely won’t come completely free of charge.
“You still will most likely spend hundreds of dollars between the gas of driving back and forth on top of buying boxes and other packing materials,” says Darren Tooley, senior loan officer at Cornerstone Financial Services.
Learn more about your top mortgage loan options online here.
Maintenance and repairs
The costs of maintenance and repairs after move-in often surprise people, too, experts say.
“Once you close on a home, your expenses are just beginning,” Tooley says. “Typical maintenance costs can range from 1% to 4% of the value of the home but could be much more if you need to pay for larger items like replacing a roof or new windows.”
Older houses will usually have higher upkeep and repair costs, but new homes aren’t completely free from these expenses. You will still need to pay for regular HVAC tune-ups, gutter cleaning, pest control services, lawn care and more.