Mortgage Repayment Calculator: Beyond Your Monthly Payment

Property Tax Rates

That shiny mortgage calculator might tell you your monthly loan payment, but there's another financial commitment waiting in the wings: property taxes.

These annual bills represent one of your most significant ongoing expenses as a homeowner. They fund everything from your local schools to the roads you drive on and the firefighters who show up when you need them.

How much will you pay? That depends entirely on where you live.

Property taxes are levied by local governments—counties, municipalities, school districts—and calculated based on your home's assessed value and the applicable tax rate. What's fascinating is just how dramatically these rates vary across America.

Based on data compiled by the Tax Foundation using the U.S. Census Bureau's 2023 American Community Survey, the effective property tax rates (expressed as a percentage of owner-occupied housing value) create a nationwide patchwork of tax burdens.

Want to know where homeowners feel the heaviest tax burden? These states topped the charts in 2023:

• New Jersey: 2.23%
• Illinois: 2.07%
• Connecticut: 1.92%
• New Hampshire: 1.77%
• Vermont: 1.71%

On the other end of the spectrum, these states offer homeowners the lightest property tax load:

• Hawaii: 0.27%
• Alabama: 0.38%
• Colorado: 0.49%
• Nevada: 0.49%
• South Carolina: 0.51%

But here's where it gets really interesting—even within states, these rates can vary dramatically by county and municipality.

For instance, 2023 data highlighted counties in New York, New Jersey, and Wisconsin with effective rates exceeding 2.95%, while some counties in Alaska, Alabama, and Louisiana had rates below 0.18%. The national average countywide median property tax paid in 2023 was $1,889.

Earlier data from 2021 showed similar patterns, with New Jersey maintaining its position at the top (2.23%) and Hawaii at the bottom (0.32%).

Illustrative State Effective Property Tax Rates (Owner-Occupied Housing, 2023)

Source: Tax Foundation calculations based on U.S. Census Bureau, 2023 American Community Survey. Rates are rounded.

Homeowners Insurance Premiums

Think of homeowners insurance as your financial shield—protecting not just your house, but your financial future if disaster strikes.

This coverage safeguards against damage to your property and provides liability protection if someone gets injured on your turf. And if you're getting a mortgage, your lender will insist you have it.

But how much will this protection set you back? That depends on a surprising number of factors.

The cost varies wildly based on how much coverage you need (particularly dwelling coverage, which covers rebuilding your home), where you live, what your house is made of, and dozens of other variables that insurers use to calculate your risk profile.

According to analysis by Forbes Advisor, the national average annual premium depends significantly on how much house you're protecting:

• $200,000 Dwelling Coverage: $1,150
• $350,000 Dwelling Coverage: $1,678
• $500,000 Dwelling Coverage: $2,212
• $750,000 Dwelling Coverage: $3,068

National Average Annual Homeowners Insurance Cost by Dwelling Coverage

Source: Forbes Advisor analysis.

Where you live creates even more dramatic differences. For a policy with $350,000 in dwelling coverage, state averages range from just $380 in Hawaii to a whopping $4,024 in Oklahoma.

Why such a massive gap? Your geography determines your exposure to natural disasters like hurricanes, tornadoes, wildfires, and hail. Local construction costs, crime rates, and state regulations all play roles too.

Unfortunately, these costs have been trending upward. Data shows premiums rising 8.7% above inflation between 2018-2022, with the biggest jumps in areas facing higher climate-related risks. The National Association of Insurance Commissioners reported a nationwide average premium increase of 7.6% for the common HO-3 policy form between 2020 and 2021.

Beyond location, several other factors influence what you'll pay:

• Deductible Amount: Opting for a higher deductible typically lowers your premium—you're essentially agreeing to shoulder more of the financial burden if something happens.
• Property Characteristics: Insurers look closely at your home's age, construction materials, roof condition, and safety features like smoke detectors and security systems.
• Claims History: Both your property's past claims and your personal claims history follow you and impact your rates.
• Credit-Based Insurance Score: In most states (excluding CA, MD, MA), insurers use your credit information when determining premiums.
• Proximity to Fire Protection: How close you live to fire hydrants and fire stations directly influences your home's risk assessment.

With such variability, shopping around becomes essential. Getting quotes from multiple insurers often reveals surprisingly different premiums for identical coverage. The NAIC provides resources for state insurance department information and consumer guides to help you navigate these choices.

Private Mortgage Insurance (PMI)

Can't pull together a 20% down payment? You're not alone—and there's a solution, though it comes with a cost: Private Mortgage Insurance (PMI).

PMI is typically required by lenders for conventional mortgage loans when you put down less than 20% of the home's purchase price. In mortgage-speak, that means you have a loan-to-value (LTV) ratio greater than 80%.

Here's the crucial detail: PMI protects the lender, not you. If you default on your loan, PMI helps the lender recover their losses. Even though it's not designed to benefit you directly, PMI serves an important purpose—it enables you to purchase a home sooner with a smaller down payment, potentially as low as 3% in some cases.

PMI Cost:

What you'll pay for PMI depends on several factors: your loan amount, your LTV ratio (how much equity you have), your credit score, and your loan type (fixed vs. adjustable rate). Generally, lower down payments and lower credit scores result in higher PMI premiums.

Common Range: PMI typically costs between $30 and $70 per month for every $100,000 borrowed.

Percentage Range: Annual PMI premiums generally fall between 0.46% and 1.5% of the loan amount. Some sources cite ranges like 0.5% to 1.5% or 0.58% to 1.86%. Title insurance premiums, a separate closing cost sometimes confused with PMI, typically range from 0.5% to 1.0% of the purchase price.

PMI Payment Structures:

The most common structure is a monthly premium added to your regular mortgage payment, but you might encounter alternatives:

• A single, upfront premium paid at closing.
• A combination of upfront and monthly premiums.
• Lender-paid PMI (LPMI), where the lender covers the premium, often in exchange for a higher mortgage interest rate; this type typically cannot be cancelled.

PMI Removal:

Here's the good news—PMI isn't forever. Under the federal Homeowners Protection Act (HPA), you have specific rights regarding PMI cancellation:

Borrower-Requested Cancellation: You can request PMI cancellation in writing once your principal balance reaches 80% of the home's original value (through regular payments or extra principal payments). "Original value" generally means the lesser of the purchase price or appraised value at the time of purchase. You'll need to be current on payments, have a good payment history, and potentially provide evidence that your property value hasn't declined.

Automatic Termination: Lenders must automatically terminate PMI when your principal balance is scheduled to reach 78% of the original value, provided you're current on payments.

Final Termination: PMI must also be terminated the month after your loan reaches the midpoint of its original amortization schedule (e.g., after 15 years on a 30-year loan), even if the 78% LTV threshold hasn't been met, as long as you're current on payments.

Some loan investors like Fannie Mae and Freddie Mac may have their own guidelines, but they can't be less favorable than the HPA requirements. If your home value increases significantly due to market appreciation or improvements, you might be able to cancel PMI earlier by obtaining a new appraisal to demonstrate sufficient equity (typically 20%), though specific lender requirements apply.

It's important to distinguish PMI from FHA mortgage insurance premiums (MIP), which apply to FHA loans and have different rules, often requiring payment for the life of the loan or involving refinancing to remove.

PMI Cancellation Thresholds (Conventional Loans)

Sources: Consumer Financial Protection Bureau (CFPB), Freddie Mac, Fannie Mae, Bankrate.

Home Maintenance and Repair Costs

That beautiful home you just bought? It's slowly breaking down—starting the moment you get the keys.

Owning a home means budgeting not just for your mortgage but also for ongoing maintenance and eventual repairs or replacements of major systems. These costs aren't optional; they're an inevitable part of responsible homeownership.

Estimating Annual Costs:

So how much should you set aside? There are several popular rules of thumb, though actual costs will depend on your home's age, condition, size, location, and features:

The Percentage Rule: The most widely cited guideline suggests budgeting 1% of your home's value annually for maintenance. Many experts suggest a range of 1% to 4%, with higher percentages for older homes or those with complex features like pools. For a $350,000 home, that means setting aside between $3,500 (1%) and $14,000 (4%) yearly.

The Square Foot Rule: Another approach is to budget $1 per square foot of living space annually. For a 2,500 sq. ft. home, that's $2,500 per year.

The 10% Rule: Some financial advisors recommend budgeting 10% of your total monthly mortgage principal, interest, taxes, and insurance (PITI) payment for maintenance.

Research from the National Association of Home Builders (NAHB), based on the American Housing Survey, provides some additional context. They found that operating costs (including maintenance, utilities, insurance, property taxes) decline as a percentage of home value for newer homes. Homes built after 2010 had average operating costs around 3% of value, compared to over 6% for homes built before 1960.

The maintenance component specifically (defined narrowly as routine repairs like painting and plumbing) was estimated at roughly 0.54% of home value, though this excludes major replacements. Meanwhile, Angi Homeservices reported higher average annual spending of $3,192 on maintenance projects, plus an additional $1,640 for home emergencies in a study period ending in 2020.

Costs for Major System Replacements:

Beyond regular maintenance, you'll eventually face significant expenses replacing major home systems. The timing and costs vary widely:

Roof Replacement:

• Average Cost: Estimates range widely based on material, size, and complexity—from $6,000 to $16,000+ for standard jobs, with some estimates going to $25,000 for a 2,500 sq. ft. roof with standard shingles.
• Cost per Square Foot: $3.40-$8.75 for asphalt; higher for metal, tile, slate. Labor often accounts for 60% of the cost.
• Lifespan: 20-30 years for typical asphalt shingles; potentially 40-75+ years for metal or slate.

HVAC Replacement:

• Average Cost: $5,000-$10,000 for a complete system.
• Central AC alone: $3,000-$7,000.
• Furnace/Heat Pump: $2,500-$5,000.
• Lifespan: Typically 10-15 years.

Water Heater Replacement:

• Average Cost: $814-$1,587.
• Lifespan: Around 15 years.

Estimated Costs and Lifespans for Major Home System Replacements

Note: Costs vary dramatically based on location, materials, home size, and contractor selection. These ranges are illustrative estimates synthesized from sources.

Regular maintenance, such as annual HVAC servicing ($150-$700) or gutter cleaning, can help extend the lifespan of these systems and prevent even costlier repairs down the road. Think of it as preventive medicine for your home—a small investment now to avoid a major expense later.

Home Renovation Costs and Return on Investment (ROI)

That dated kitchen has been driving you crazy since you moved in. But before you start ripping out cabinets, you might wonder: will this renovation pay off when you eventually sell?

pie title Home Renovation Project Return on Investment (ROI)
    "Garage Door Replacement" : 193.9
    "Steel Entry Door Replacement" : 188.1
    "Manufactured Stone Veneer" : 153.2
    "Siding Replacement (Fiber-Cement)" : 88.4
    "Deck Addition (Wood)" : 82.9
    "Minor Kitchen Remodel" : 96.1
    "Midrange Bathroom Remodel" : 73.7
    "Major Kitchen Remodel" : 49.5
    "Upscale Bathroom Remodel" : 45.1

Home renovations enhance your daily living experience and can potentially increase your property's value. But not all projects deliver equal returns. Understanding typical costs and their associated return on investment (ROI)—the percentage of renovation cost recouped upon resale—can help you make smarter decisions.

The gold standard for this data is the Cost vs. Value (CvV) report, published annually (historically by Remodeling Magazine, now by Zonda Media).

Typical Renovation Costs:

What you'll pay varies dramatically based on project scope (minor vs. major vs. upscale), materials, labor rates, and geographic location.

Kitchen Remodel:

• Minor (Midrange): Average $27,492 (2024 CvV). Think refaced cabinets, new countertops, sink/faucet, flooring, and paint.
• Major (Midrange): Average $79,982 (2024 CvV). This includes new semi-custom cabinets, an island, standard appliances, countertops, flooring, and lighting.
• Major (Upscale): Average $158,530 (2024 CvV). We're talking top-of-the-line custom cabinets, stone countertops, built-in high-end appliances, designer fixtures, and elegant lighting.
• General Ranges: $12k-$50k+. Per square foot: $150-$250.

Bathroom Remodel:

• Midrange: Average $25,251 (2024 CvV). Includes standard fixtures, ceramic tile, vanity top, and flooring.
• Upscale: Average $78,840 (2024 CvV). Envision an expanded footprint, high-end fixtures, custom shower, freestanding tub, stone countertops, and heated floors.
• General Ranges: $6.6k-$28k+. Per square foot: $120-$275.

Deck Addition:

• Wood: Average $17,615 (2024 CvV). Pressure-treated joists/posts with wood deck boards and railing.
• Composite: Average $24,206 (2024 CvV). Similar structure but with composite decking and railing.
• General Ranges: $15-$35 per sq. ft.

Return on Investment (ROI):

Here's where things get interesting. ROI figures represent the estimated value added at resale as a percentage of the project cost. These numbers fluctuate yearly based on market conditions, construction costs, and buyer preferences.

The 2024 Cost vs. Value report revealed several fascinating trends:

Exterior Projects Dominate ROI: Consistent with previous years, exterior improvements generally offer the highest cost recoupment. Projects like garage door replacement (194%), steel entry door replacement (188%), and manufactured stone veneer (153%) topped the 2024 list.

Why? First impressions matter enormously. A positive exterior impression signals a well-maintained home and makes buyers more receptive to everything else they'll see.

Functional Interior Updates Valued: A minor kitchen remodel (96.1% ROI) and a midrange bath remodel (73.7% ROI) also ranked relatively high. This suggests buyers value updated core spaces and may prefer to avoid immediate, costly renovations themselves—especially in tighter economic conditions.

Diminishing Returns for Upscale Projects: Major upscale kitchen (38.0% ROI) and bath (45.1% ROI) remodels recoup a significantly lower percentage of their cost. Highly personalized, expensive finishes may not align with all buyers' tastes, limiting their perceived value.

The truth? The value derived from such projects is often more about your enjoyment than financial return.

ROI Volatility: Project ROI can change significantly year-over-year. For example, the HVAC conversion (electrification) project ranked #1 in the 2023 report with 103.5% ROI but dropped to 66.1% ROI in the 2024 report. Overall project values saw a significant increase in the 2024 report compared to 2023.

Regional Differences: National averages are just benchmarks; actual ROI varies by region and local market conditions. For example, St. Louis showed higher ROI for midrange kitchen, bath, and wood deck projects compared to the national average in 2024, while potentially lagging behind higher-cost West Coast markets.

Selected Home Renovation Projects: National Average Cost & Cost Recouped (ROI) (2024)

Source: 2024 Cost vs. Value Report (Remodeling Magazine / Zonda Media).

Historical Home Value Appreciation Rates

"Your home is an investment." How many times have you heard that phrase?

But is it true? How much do homes actually appreciate over time, and can you count on that growth?

Home value appreciation—the increase in a property's market value over time—is a primary driver of home equity growth. However, it's influenced by complex economic factors and market cycles that make it far from guaranteed.

Historical data gives us context for understanding long-term trends, though it's important to remember that past performance doesn't guarantee future results.

The Federal Housing Finance Agency (FHFA) House Price Index (HPI) is the gold standard for tracking single-family home price changes in the U.S. Unlike some metrics, it uses a repeat-sales methodology, analyzing price changes on the same properties over time through purchase and refinance transactions involving mortgages backed by Fannie Mae or Freddie Mac.

This "constant quality" approach helps isolate pure price movements from changes in the types of homes being sold. FHFA provides various indices—national, regional, state, and metropolitan area data—often dating back to the 1970s.

Long-Term Average Appreciation:

Based on historical FHFA HPI data, the long-term average annual appreciation rate for U.S. single-family homes is approximately 4.6%. (Specific calculations yield 4.59% or 4.63% covering 1992-2025).

Volatility and Recent Trends:

That long-term average smooths over significant fluctuations. The housing market experiences cycles of varying appreciation rates:

• Highs: Year-over-year appreciation reached record levels, peaking around 18-19% in late 2021 and early 2022.
• Lows: Conversely, periods of depreciation occur, with a record low of -10.5% year-over-year recorded in November 2008 during the Global Financial Crisis.
• Recent Fluctuation: Following the 2021-2022 peak, appreciation rates slowed markedly through 2023, dipping below 3% year-over-year mid-year, before recovering to the 4.8% range by early 2025.

This historical volatility underscores an important truth: while homeownership has historically offered appreciation over the long run, the rate is variable and not guaranteed in any given period.

Market conditions, interest rates, economic growth, and housing supply/demand dynamics all influence price trends. Your timing matters enormously.

Regional Variation:

Perhaps most importantly, appreciation rates are highly localized. National averages may not reflect the specific conditions in your state or metropolitan area.

For example, FHFA data for the year ending Q4 2024 showed 1-year state appreciation rates ranging from over 8% in states like Connecticut and New Jersey to near zero or slightly negative in states like Louisiana and Mississippi.

Therefore, understanding local market trends is crucial when considering potential appreciation. The house next door to you might be appreciating at a substantially different rate than the national average suggests.

The primary source for this data is the Federal Housing Finance Agency (FHFA) House Price Index (HPI).

Mortgage Closing Costs

You've found your dream home, negotiated the price, and secured your mortgage. Just one more hurdle: closing costs.

These fees represent the grand finale of your homebuying journey—a collection of payments to finalize your mortgage loan and real estate transaction. They're separate from your down payment and typically paid at the closing meeting when you get your keys.

Typical Cost Range:

How much should you budget? As a percentage of the loan amount, closing costs generally fall between 2% and 5%.

Interestingly, this percentage tends to be higher for smaller loan amounts and lower for larger ones. Why? Because many fees are fixed or semi-fixed regardless of loan size.

An Urban Institute analysis illustrated this effect perfectly: average closing costs (excluding prepaids) were 4.6% ($4,500) for a $97,000 mortgage but only 1.4% ($9,500) for a $679,000 mortgage.

In dollar terms, the median total loan costs (including origination fees, appraisal, credit report, title insurance, discount points, etc.) paid by borrowers were nearly $6,000 in 2022, a significant increase from prior years.

Common Closing Cost Components:

Closing costs can be grouped into several categories. The specific fees and their amounts vary significantly by location (due to state/local taxes and regulations) and lender:

Lender/Origination Fees: Charges by the mortgage lender for processing and funding the loan.

• Origination Fee: Covers underwriting and processing. Often 0.5% to 1% of the loan amount or a flat fee. An Urban Institute analysis found an average of $1,224.
• Discount Points: Optional fees paid upfront to lower the mortgage interest rate. Costs vary based on rate reduction; median points paid were $2,370 in 2022.
• Appraisal Fee: Cost for a licensed appraiser to determine the home's market value. Average $558.
• Credit Report Fee: Cost to pull your credit history. Costs have reportedly risen, potentially $60-$110+ for a tri-merge report. Average $80 in one analysis.
• Flood Certification Fee: Determines if the property is in a flood zone. Average $8.

Title and Settlement Fees: Costs associated with ensuring clear property title and handling the closing transaction, often managed by a title company or attorney.

• Lender's Title Insurance: Protects the lender against title defects. Required by the lender. Cost varies by state, often 0.5%-1.0% of the loan amount. Average $1,626.
• Owner's Title Insurance: Protects you against title defects. Optional but highly recommended. Average $487.
• Settlement/Closing Fee: Paid to the title company or attorney conducting the closing. Average $725.
• Document Preparation, Notary Fees: Smaller fees for document handling. Averages $102 and $38 respectively in one analysis.

Government Recording and Transfer Charges: Fees levied by state and local governments.

• Recording Fees: Paid to the local government (usually county) to record the deed and mortgage publicly. Average $179.
• Transfer Taxes/Tax Stamps: Taxes imposed on the transfer of property ownership. Highly variable by location; can be substantial. Averages $1,465 (transfer tax) + $636 (tax stamp) in one analysis.

Prepaid Expenses and Escrow Items: Funds collected at closing to cover recurring homeownership costs that fall due shortly after closing. While paid at closing, these are not fees for obtaining the loan itself but rather advance payments of ongoing expenses. These often constitute a large portion of the cash needed at closing.

• Prepaid Homeowners Insurance: Typically the first year's premium.
• Prepaid Property Taxes: Several months' worth placed into an escrow account.
• Prepaid Mortgage Interest: Interest accruing from the closing date until the first monthly payment is due.
• Initial Escrow Deposit: Funds to establish the escrow account for future payments of property taxes and homeowners insurance.

Other Third-Party Fees: Costs for services provided by other vendors.

• Survey Fee: If required, to verify property lines. Average $105.
• Inspection Fees: Home inspection, pest inspection, etc. Average $120 (combined estimate).
• Home Warranty Fee: Optional policy covering repairs to home systems/appliances for a period. Average $76.

Context and Variability:

It's crucial to understand that "closing costs" represent a bundle of different charges. A significant portion of the cash due at closing often relates to prepaid taxes and insurance, which are recurring homeownership expenses, not one-time loan fees.

Costs are highly dependent on location, particularly due to variations in transfer taxes and title insurance regulations. You'll receive a Loan Estimate shortly after applying and a Closing Disclosure just before closing, which itemize these costs.

While some fees like government charges are fixed, you may be able to save on lender fees by comparing offers and potentially on certain third-party services (like title/settlement if permitted by the lender) by shopping around.

Recent reports indicate rising costs for several components, including credit reports and potentially title fees, prompting regulatory inquiry.

Illustrative Breakdown of Average Mortgage Closing Costs (Excluding Prepaids/Escrows)

Note: Representative ranges synthesized from sources indicated. Actual costs vary significantly by location, lender, loan amount, and services chosen. Prepaid expenses (taxes, insurance) and escrow funding represent substantial additional cash needed at closing but are not included in the ranges above as they reflect recurring costs paid in advance.

Conclusion

That monthly payment? It's just the tip of the homeownership iceberg.

Below the surface lies a complex financial reality. Property taxes and insurance can sometimes rival your mortgage payment in high-tax or disaster-prone regions. PMI adds cost for those with smaller down payments, though it's mercifully temporary.

Your home starts aging the moment you get the keys. The roof, HVAC, and water heater begin their countdown to replacement, while regular maintenance demands both time and money. Smart homeowners budget for these inevitabilities.

Renovations present an intriguing risk-reward equation. Curb appeal improvements often return more than interior splurges—that dream kitchen might bring joy, but rarely recoups its full cost.

Long-term appreciation (4.6% historically) provides the silver lining, though it varies dramatically by location and timing. This potential for building equity remains one of homeownership's most compelling financial advantages.

Understanding these dimensions—beyond what any mortgage calculator can show—lets you approach homeownership with eyes wide open to both its costs and opportunities.