← Guides · November 8, 2026
The Real Monthly Cost of Owning: Beyond the Mortgage Payment
A mortgage payment is not what owning costs. On a $400,000 home with 20% down at 6.5% over 30 years, the payment is $2,023 a month. Add the costs that come with the house:
| Item | Per year | Per month |
|---|---|---|
| Mortgage payment | $24,276 | $2,023 |
| Property tax (1.1% of value) | $4,400 | $367 |
| Upkeep and insurance (1.0%) | $4,000 | $333 |
| Total | $32,676 | $2,723 |
That is $523 a month more than a $2,200 rent, before counting the one-time costs: about $12,000 to buy (3%) and $24,000 to sell (6%) at today’s value.
Why it matters
- Comparing rent to the mortgage payment alone makes buying look cheaper than it is.
- Upkeep and tax scale with the home’s value, so they grow as it appreciates.
- Part of the payment builds equity, which is why owning can still win over the long run.
Enter your own tax and upkeep rates in the calculator.