When you’re getting ready to buy a home, it’s easy to focus on one number: the mortgage payment. And yes — that’s a big one. But true homeownership comes with a handful of ongoing costs that most first-time buyers don’t think about until they’re already moved in.
Let’s walk through the real monthly, yearly, and long-term expenses you’ll want to plan for so you can step into homeownership feeling confident and prepared.
Your Mortgage: More Than Just “The Payment”
Most mortgage payments are made up of four components known as PITI:
- Principal – the amount you borrowed
- Interest – the cost of borrowing it
- Taxes – your property taxes
- Insurance – homeowners insurance
Many lenders roll all four into one monthly payment. For this breakdown, we’re pulling homeowners insurance out separately so you can see it on its own — because it plays a bigger role in your budget than people expect.
Homeowners Insurance
Annual Average: ~$1,200
You’ll typically prepay your first year of homeowners insurance at closing. After that, it becomes a yearly expense. The cost depends on:
- Condo vs. single-family vs. multi-family
- Age and condition of the property
- Whether the home is in a flood zone
Insurance isn’t usually a massive monthly hit, but it is essential — and it’s one of those “don’t skip” categories of responsible homeownership.
Monthly Utility Costs
Town Water
Estimated Cost: $120 per quarter
If the home is connected to municipal water, the billing is straightforward and often prorated at closing. This is one of the more predictable utilities you’ll have.
Electricity
Estimated Cost: ~$100 per month
Usage varies, of course, but most Vermont homes land right around this range unless the property is unusually large or heavily electric-heated.
Internet / Cable
Estimated Cost: $90–$120 per month
Even cord-cutters typically fall into this range for internet alone.
Trash Removal
Estimated Cost:
- $50 every other week for pickup
- OR ~$5 per large bag if you prefer drop-off
If you’re outside town service lines, you’ll be choosing between convenience or cost savings here.
Heating Costs in Vermont
Heating is one of the most important expenses to plan for in Vermont — and the price varies based on the fuel source.
Average monthly estimates:
- Oil: ~$150
- Natural Gas: ~$75
- Propane: ~$110
- Electric Heat: ~$100
These numbers fluctuate by season, but they’re great for planning your budget.
Optional Services: Landscaping & Plowing
Estimated Cost: ~$50 per month
If you choose to hire out mowing, seasonal yard work, or winter plowing, expect around fifty dollars a month on average — sometimes more during heavy winter periods. DIY can save money, but time and physical effort become part of the equation.
Annual Maintenance & Upkeep
Estimated Cost: $2,000–$5,000 per year
Every homeowner should budget for general maintenance — cleaning gutters, servicing heating systems, tightening that one wiggly doorknob that suddenly sounds like it’s screaming for help… the usual.
And every 3–5 years, you may also be looking at bigger refresh items like:
- Pressure washing or exterior painting: $2,000–$10,000
- Deck staining or repair
- Driveway sealing or patching
Regular upkeep keeps small problems from turning into expensive ones.
Long-Term Replacement Costs to Plan For
These aren’t monthly costs, but setting aside money each year for future replacements can save a lot of stress — and credit card debt — later.
Typical big-ticket items include:
- Hot water heater: ~$2,200
- Roof: ~$10,000
- Natural gas furnace: ~$9,000
- Windows: ~$800 each
- Slider door: ~$3,000
- Refrigerator: ~$2,000
Homes age just like we do, and having a reserve fund is your financial version of sunscreen — it prevents long-term damage.
Putting It All Together
The real cost of homeownership isn’t just “Can I afford the mortgage?”
It’s “Can I comfortably manage the whole package — month after month, year after year?”
When you go in with clear expectations and a realistic budget, owning a home becomes far more enjoyable… and much less stressful.
If you’re planning a home purchase in Vermont and want help estimating these numbers for the specific homes you’re looking at, I’m always here to walk you through it.
