Are you looking to buy a house in Sugar Land? Before making a purchase, it is important to analyze and understand the expected monthly costs will be to avoid running into mortgage paying problems in the future. We will analyze the cost of owning a house valued between $200,000 to $250,000 in Sugar Land, Texas.
There are 5 main expenses to consider each month:
- The Mortgage- ($1,000-$1,300)
The mortgage is the largest monthly expense you will have. This only includes paying the mortgage principal and the interest, which is at 5% interest in this example. This payment does not include private mortgage insurance, which would add about $175 per month if your lender requires it at the beginning of the loan.
- Property Taxes- ($300-$375)
The average property tax bill in Sugar Land is between $3,500 to $4,500 per year for properties valued between $200,000 to $250,000. This makes it about $300-$400 per month just for property taxes.
- Home Insurance- ($150-$200)
The rule of thumb for the price of home insurance is $1 per square foot. If the house is 1,500 square feet, then the annual insurance bill is approximately $1,500 per year and $125 per month. The average size for homes valued at $200,000 to $250,000 is between 1,500 to 2,500 square feet. Therefore, the monthly estimate for home insurance is between $125 to $200.
- Utilities- ($300)
Utilities is one of those expenses that will vary greatly based on the home owner. An electric bill on average can run about $150 to $200, the water bill about $50, and TV, phone and internet about $75. A $300 utility bill is a reasonable cost, although it may be higher for some home owners.
- Maintenance and Repairs – ($150)
Having to maintain and do any repairs on the house is a curveball cost that can be needed at any time. What if the roof gets damaged due to a natural weather event? That’s an immediate fix needed. We will just consider a $150 per month budget for any necessary repairs, which would be $1,800 annually to pay for any house related issues. This will depend on the condition and year built of the house and will differ greatly house by house.
So, what’s the total monthly cost of owning a house? After adding all the costs up, you can expect to pay between $1,900 to $2,325 per month for a house valued between $200,000 to $250,000 in Sugar Land, Texas. Now that you know what to expect to pay each month, you can begin your house search or continue renting if that’s a better fit for you.
We buy houses in Sugar Land TX and have worked with several home owners that were behind on payments due to the unforeseen burden of the total monthly cost to own a property. The more you know about all the costs, the better prepared you will be to succeed and own your dream house.
