It’s one thing to own a home but completely another to have to pay for the endless costs that come with it.

The American dream isn’t only about living free; it’s also about having a place to call home. But that comes at a cost. Most first-time homeowners know very little about it.

So, that’s why we’re here to tell you all about the 7 hidden costs of owning a home. Without further ado, let’s start.


Decorating your home is one of those things that sounds very insignificant at first, but quickly turn into a costly expense! Everyone needs to decorate their home, and so will you.

At first, the decor isn’t that important as we have to buy the place. But once we manage to get that over the line, this expense comes into play. From buying sofas to chairs, a TV stand and dozens of other things, decorating can cost a lot of money!

We suggest you create a budget for it and factor in the fact that every home needs furniture.


Unless you’re a millionaire that can fork out hundreds of dollars to buy a new house, then you will most likely get a loan. And the loan isn’t the problem here; it’s the mortgage interest rates.

Every homeowner will happily pay their mortgage rate each month. But not many understand how mortgage interest works. You see, this is one of the trickiest hidden costs of being a homeowner.

A mortgage loan of around $200,000 with over 30 years with a 4% mortgage interest rate will cost you an extra $140,000!

Locks and Security

You’ve bought your new dream home and you’ve got the keys to the place, what now?

Well, not many rookie homeowners know that changing the locks is the first thing you should do. That’s because you have no idea who might have a copy of those keys.

While you might know how many people have previously lived there, each one of them might have a copy sitting at home. So, naturally, this should be your first priority. But it does come at a cost.

Another thing to note is that you might want to invest in a new security system. Security systems are much more expensive than simply changing the locks, but it will make you sleep easier.

Homeowners Insurance

This is something that very few soon-to-be homeowners know. When buying a home, if you’re going through the mortgage route, then you will need to buy a homeowner’s insurance policy.

Fortunately for you, these can easily be obtained. Unfortunately, however, they can cost a lot of money. It all really depends on where you live. If you live in a state that has been ravaged by fires in the past few months, then homeowners insurance can cost up to $6,000!

Places that are susceptible to floods, fires, and earthquakes tend to have more expensive insurance. Also, the size of your home plays an equally important role in determining the total costs.

Property Taxes

Taxes – America’s worst nightmare. But all jokes aside, property taxes are very real, and not many new homeowners know about them. Homeowners not knowing about hidden costs isn’t something new.

But the question still remains as to what these are. And property taxes are one of the most daunting hidden costs that exist when it comes to owning a home.

The subject of the matter is a type of taxation that applies to every homeowner. These vary depending on which parts of the city you live in. Nicer neighborhoods have higher property taxes.

Lawn Maintenance

You’d be surprised to see how much is spent annually in the US on lawn care & maintenance. Official figures state that nearly $35 billion are spent on appliances, tools, and services to maintain suburban neighborhood lawns.

Gardens in the US are like no other. Americans take huge pride in having their backyards so well maintained that it would put others to shame. It’s like a competition that no one really cares about, but somehow we all do.

And unless you want to be one of those houses with a crappy yard, you will put some money into maintaining your lawn. Lawn care & maintenance businesses make around $1,000 per household on a yearly basis!

Pest Control

And finally, we come to the most annoying hidden cost that homeowners will absolutely hate to pay for – pest control.

Acknowledging that your home is riddled with insects and critters is a nightmare. Not only that but getting read of pest is an even bigger issue. Naturally, the easy way to solve this unpleasant issue is to hire pest control services.

But that’s not easy once you see how expensive they can be. Some services charge per square meter, while others will charge a flat fee. Pest services can cost up to $200! Forking out that kind of money to get rid of insects and critters isn’t a hard sell.

But what’s hard is the fact that it can be prevented. The US pest control industry has stated that annual damages due to pest infestation wrack up more than $5.5 billion.

Homeowners might experience up to $3,000 in damages! And the more dangerous the type of pest, the bigger the costs.

Finishing Thoughts

It’s everyone’s dream to take the keys and step food inside their new home. And if you thought that you’re just about done with paying for expenses, wait until you see some of these 7 hidden costs show at your doorstep.