Base = $250,000 home

Newer Home
Extra home costs Low Average

Interior upgrades 2.1% 5.2%

(curtains, rugs, furniture)
Note: Excludes large remodeling projects
Total one time costs 2.1% 5.2%
Note: Excludes home acquisition costs

Total average one-time dollar costs $5,250 $13,000

Annual Maintenance 1.1% 2.4%

(lawn care, regular home upkeep)

Deferred Maintenance 0.5% 1.2%

(furnance, A/C, plumbing, foundation, roof, etc.)
Note: deferred costs usually come in large, unpredictable chunks
Total average annual percentage costs 1.6% 3.6%
Total average annual dollar costs $4,000 $9,000

Important note: Add .7 to 1.1% per year for homes in severe weather areas

Low category - homeowner does most of the work, with few contractors
Average category - homeowner does some work; contracts out major projects
High category - includes problem homes, most work contracted out incl lawn maintenance

Source: Stearns Financial

ewer Home Older Home
High Low Average High

8.9% 3.0% 6.8% 11.3%

8.9% 3.0% 6.8% 11.3%

$22,250 $7,500 $17,000 $28,250

3.5% 1.6% 2.9% 4.3%

1.5% 0.9% 1.6% 2.7%

5.0% 2.5% 4.5% 7.0%

$12,500 $6,250 $11,250 $17,500
Purchase of older home

Purchase price $250,000

Down payment $25,000 10%

Closing costs $6,250 2.5% average
One-time upgrades $17,000 Average
Total one-time costs $48,250

Mortgage $14,904 30 year - 5.2% fixed rate

Taxes & Insurance $6,200 Varies significantly by state & home
Hidden costs $11,250 Average
Total annual costs $32,354 53% higher with "hidden" costs

Note: Excludes tax benefit of mortgage interest and property tax deduction
Purchase of newer home

Purchase price $250,000

Down payment $25,000 10%

Closing costs $6,250 2.5% average
One-time upgrades $13,000 Average
Total one-time costs $44,250

Mortgage $14,904 30 year - 5.2% fixed rate

Taxes & Insurance $6,200 Varies significantly by state & home
Hidden costs $9,000 Average
Total annual costs $30,104 43% higher with "hidden" costs

Note: Excludes tax benefit of mortgage interest and property tax deduction