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The 30-year fixed mortgage was supposed to be predictable. Two costs quietly broke that promise
Fortune • • business
Key Points:
- A recent survey by Ownwell found that 76% of U.S. homeowners experienced higher-than-expected property taxes in recent years, with 40% considering moving due to these rising costs.
- Property taxes and insurance, unlike fixed-rate mortgages, can increase unpredictably each year, creating affordability challenges that many buyers overlook during the home purchase process.
- Real estate agents report that buyers often focus on mortgage rates and home prices but underestimate ongoing expenses like property taxes, maintenance, and condo association fees, which can significantly impact monthly budgets.
- Nationally, hidden homeownership costs—including taxes, insurance, utilities, and maintenance—now average over $21,000 annually, with maintenance alone accounting for nearly $9,000.
- Home insurance premiums have surged 46% since 2021, especially in disaster-prone states like Florida and California, adding another layer of financial strain for homeowners post-closing.
