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From repairs and maintenance to renovations and building equity, this guide will help you confidently pay for and enjoy your home. Selling Your Home Homeownership Handbook The Hidden Costs of Homeownership The Average Cost of Owning a Home in the US How Much To Budget for Home Maintenance 3 Homeowners On How They Manage Home-Related Expenses 10 Home Improvements That Do Not Add Value Understanding Foreclosures How To Recession-Proof Your Mortgage What Happens If I Can’t Pay My Mortgage? What Does It Mean To Receive a Notice of Default? The Stages of the Foreclosure Process Foreclosure Rates in the US Key Terms Foreclosure Loan Modification Homeowner’s Insurance Reverse Mortgage Home Equity Property Insurance Property Tax Mortgage Forbearance Agreement Home Warranty Lessee Loan Principal Foreclosure Foreclosure is the process that lenders use to take possession of property from borrowers who can’t pay their mortgages. Once in possession of the home, the lender can sell the property to recover the amount of the loan. Learn More Loan Modification A loan modification is a change to your current home loan, whether that’s changing the length of repayment, interest rate, or other terms. Learn More Homeowner’s Insurance Home insurance provides financial protection to you as a homeowner against sudden and accidental damage to your home and everything inside it, as well as any additional structures on your property. Learn More Reverse Mortgage A reverse mortgage allows you to receive payments based on your home’s equity. You must be age 62 or older and must live in the house. The loan must be repaid when you move out, sell the house, die, or at the term’s end. Learn More Home Equity Home equity is the value of a homeowner’s interest in a home. It can increase over time if the property value increases or as you pay down the mortgage loan balance. Learn More Property Insurance Property insurance includes the insurance types purchased to protect dwellings and belongings inside and outside the home. Learn More Property Tax Property tax is a tax that an owner of the property—which can include a home, vehicle, or vacant land—pays to the local government based on the property’s assessed value. Learn More Mortgage Forbearance Agreement A mortgage forbearance agreement is a contract between a mortgage lender and a borrower wherein the lender agrees not to foreclose on the home and the borrower agrees to a plan that eventually gets them caught up on their monthly payments. Learn More Home Warranty A home warranty is a service contract that pays to repair or replace major home systems such as electrical components, kitchen appliances, and plumbing. Home warranties come in different forms and the components they cover varies. Learn More Lessee A lessee is an individual or company that rents property from another person or company, signing an agreement known as a lease to make it official. Learn More Loan Principal If you have borrowed money for your home, loan principal is the original amount of money you borrowed from the lender and must repay. In addition to the principal, you may also have to pay interest charges and other fees until you have reduced the principal to $0. Learn More Building & Using Home Equity How Does a HELOC Work? What Is a Home Equity Loan? Requirements for a Home Equity Loan or HELOC HELOC vs. Second Mortgage: What’s the Difference? HELOC vs. Personal Loan: What’s the Difference? Frequently Asked Questions How much does it cost to own a home in the U.S.? There are many costs that go into the monthly expense of owning a home, such as your monthly mortgage payment (principal and interest), home insurance, mortgage insurance, real estate tax, and maintenance and improvement costs. The average monthly cost of owning a home is $1,558, based on The Balance’s calculations. Homeownership costs vary greatly depending on where you live, too. For example, the regional average for major cities in California is upwards of $3,300—or $4,556 if you live in San Francisco. By comparison, homeowners in cities such as Detroit or St. Louis may pay below-average homeownership costs. Learn More The Average Cost of Owning a Home in the US How are property taxes calculated? Property taxes are calculated based on a local assessment of your home’s market value, which is typically determined based on nearby sales value comparisons, or a cost or income method. Assessments may be done every year or even once every five years, depending on state and local laws. Once your property is assessed, the value will be multiplied by the local tax rate, also called themill rate ,” to determine what you owe. Since location impacts property taxes, your property tax bill may be higher or lower than a similar home in another county. Learn More How Property Taxes Are Calculated Which home improvements add the most value? Upgrading the exterior of your home like replacing a garage door, siding, or windows, or adding a deck are some of the most valuable home improvements you can make in terms of recouping spent costs. Minor kitchen remodels may also be a worthwhile investment. Adding a pool , home theater, or over-the-top luxurious items compared to other homes in your market are examples ofNewsletter Sign Up Newsletter Sign Up By clicking Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Cookies Settings Accept All...