Fair Housing Month: First-Year Costs of Homeownership
It’s important to be aware that the cost of buying a house is a bit more complicated than the asking price
If you’re like most homebuyers on a budget, you’re probably paying close attention to the asking price of homes on the market. You may even have a ballpark figure or mortgage payment in mind. That’s a great start. But it’s important to be aware that the cost of buying a house is a bit more complicated than the asking price. KeyBank’s 2025 Financial Mobility Survey found that while many believe owning a home is not an attainable goal for themselves nor the average American, financial education can help them be more confident in the home-buying process. KeyBank can help you prepare for the costs and build a budget so you can go through this with confidence.
Costs to Consider When Building Your Budget
Once you’ve found a home you like and your offer is accepted, it typically takes 30 to 45 days for the deal to close. During this time, there are several costs you’ll be responsible for. Factoring these early costs of homeownership into your plans will help you make the best choices for your finances.
Down payment: According to The Mortgage Reports, a typical down payment for a house is up to 20% of the purchase price, depending on the type of loan. If you don’t have 10%–20% saved, a KeyBank Mortgage Loan Officer can see whether you qualify for a loan that requires as little as zero down.
Closing costs: You should also budget for closing costs equal to approximately 3%–6% of the amount you’re borrowing. Closing costs include title insurance, appraisal fees, prepaid homeowners insurance and other fees. Some lenders may allow you to roll the closing costs into your loan and, in some instances, a motivated seller may agree to pay some of the closing costs. This is offered on a case-by-case basis and is something you should discuss with your realtor to make sure you understand and consider any tradeoffs.
A KeyBank mortgage loan officer can look at your income, assets, debt, and credit to create an accurate estimate of costs for homes you’re considering. They can also identify any incentives you may qualify for, like KeyBank’s interest rate discount1. For example, on a $200,000 loan with a fixed 6.25% interest rate, our .25% interest rate discount could save you a considerable amount over the life of the loan.2
Additional Homeownership Costs
There are many recurring costs associated with owning a home. Here are a few of the costs you can expect:
Homeowners insurance: Usually an annual cost, homeowners insurance premiums may often be paid as part of your regular mortgage payment.
Property taxes: Sometimes referred to as real estate taxes, property taxes may be collected as part of your mortgage payment or paid separately.
Utilities: These include electricity, gas, water and sewer, trash, and recycling.
Home services: Make sure to budget for services like internet, phone, or home security.
Ongoing maintenance costs: Each year, consider setting aside at least 1% of your home’s purchase price for ongoing home maintenance costs. If you plan to do any renovations shortly after move-in, or if the home inspection turned up any issues that need immediate attention, make sure to factor those expenses in, too, like new furniture and appliances.
KeyBank’s registered mortgage loan officers can help guide you through every step of the home-buying process. Contact us today.
About the KeyBank 2025 Financial Mobility Survey: This survey was conducted online by Schmidt Market Research in September 2024, polling 1,000 Americans, ages 18 – 70, with sole or shared responsibility for household financial decisions, who own a checking or savings account. The survey sought to gain insight into financial resiliency and explored respondents’ spending and savings habits, levels of financial confidence and financial resiliency, economic sentiment, and impacts of societal trends and pressures over the prior year.
This is designed to provide general information only. All credit products are subject to collateral and/or credit approval, terms, conditions, availability and subject to change. ©2025 KeyCorp. All rights reserved. CFMA #250404-3134828
NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. All home lending products, including mortgage, home equity loans and home equity lines of credit, are subject to credit and collateral approval. Not all home lending products are available in all states. Hazard insurance and, if applicable, flood insurance are required on collateral property. Actual rates, fees, and terms are based on those offered as of the date of application and are subject to change without notice.
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1To receive relationship benefits on a new KeyBank mortgage loan, which provides a 0.25% interest rate reduction, you must have owned a Relationship Account at any time during the mortgage loan application process, but no later than seven (7) business days prior to the closing of the mortgage loan. This Interest rate reduction is available on new KeyBank mortgage loan applications only.
As an alternative to the relationship benefit, you may obtain a 0.25% interest rate reduction if you complete and submit, no later than seven (7) business days prior to the closing of the mortgage loan, the Monthly Automatic Payment form to have your recurring mortgage payment for your KeyBank mortgage loan automatically deducted from an “Eligible KeyBank Consumer Checking Account”. Refer to the Monthly Automatic Payment form for more details.
For fixed-rate mortgages, the 0.25% interest rate reduction will be reflected in the interest rate on the Promissory Note. For adjustable-rate mortgages (“ARMs”), the 0.25% interest rate reduction will apply to the initial fixed interest rate period and will be reflected in the maximum amount the interest rate can increase of the term of the loan, subject to the minimum interest rate that may be charged per the terms of the Promissory Note or Agreement.
“Relationship Account” means (A) an open Eligible KeyBank Consumer Checking Account with five (5) or more Qualifying Transactions posted to a single Eligible KeyBank Consumer Checking Account in a calendar month, which may not be aggregated across other accounts you own, OR (B) an open Key Private Bank Checking or Key Private Bank Personal Checking account.
An “Eligible KeyBank Consumer Checking Account” means: any KeyBank consumer checking account designated as a personal checking account by KeyBank, including KeyBank’s Hassle-Free checking account, but excluding a health savings account.
“Qualifying Transactions” include, but are not limited to, point of sale transactions, bill payment(s), ATM transactions, check, cash or direct deposits, and electronic funds transfers. Qualifying Transactions exclude adjustments, advances, reversals, refunds, account to account transfers, person-to-person transfers, interest, service charges, and service fees. Qualifying Transactions must be completed at least three (3) business days prior to application to be eligible for inclusion in determining whether you met the “Relationship Account” portion of the “Bank with Key” criteria.
The 0.25% interest rate reduction may not be combined with certain other discounts or promotions and may not be available for all home lending products. Other terms, conditions, and/or limitations may apply. Contact KeyBank Home Lending for more details.
2This example is provided for illustrative purposes only to show possible savings. It does not constitute a commitment to lend on the terms listed, nor does it reflect the current mortgage interest rate offered by KeyBank. Your actual total savings may vary.
