How much does it actually cost to buy a $400,000 house?

Beyond the purchase price, expect $20,000-$50,000 in upfront costs (down payment excluded). A 10% down payment is $40,000, closing costs around $12,000-$20,000, plus inspection, moving, and initial furnishing. Total out-of-pocket on day one: $60,000-$80,000+. Annual recurring costs (taxes, insurance, maintenance) add another $8,000-$15,000/year.

What closing costs should I expect?

Closing costs typically run 2-5% of the home price. On a $400,000 house, that's $8,000-$20,000. Major items: lender origination fee (0.5-1%), title insurance ($1,000-$3,000), appraisal ($300-$600), attorney fees ($500-$1,500), escrow/prepaid taxes and insurance.

Is it cheaper to rent or buy?

It depends on your market, how long you'll stay, and your financial situation. The breakeven point is typically 5-7 years — if you'll stay longer, buying usually wins. Use a rent vs. buy calculator to compare your specific situation. In expensive metros, renting is often more cost-effective.

How much should I budget for maintenance?

The common rule of thumb is 1-2% of your home's value per year. For a $400,000 home, that's $4,000-$8,000 annually. Older homes and homes in harsh climates tend toward the higher end. Major systems (roof, HVAC, water heater) need replacement every 15-25 years.

Put at least 20% down, or look into lender-paid PMI (slightly higher interest rate), VA loans (no PMI), or piggyback loans (80/10/10). Once you have 20% equity, you can request PMI removal on conventional loans.

🏠

Cost of Buying a House

The listing price is just the beginning. Closing costs, inspection, moving, furniture, maintenance, and property taxes add up fast. Here's what homeownership actually costs.

💰 Set Your Home Price

Home Price: $400,000

$100K$2M

Down Payment: 10% ($40,000)

0%50%

Below 20% down = PMI required (adds to monthly costs)

Upfront Costs

$53.6K – $86.4K

including down payment

Annual Recurring Costs

$6,200 – $34.8K

taxes, insurance, maintenance

10-Year Recurring Total

$62.0K – $348.0K

Upfront Costs

💵

Down Payment

$40,000

Conventional loans typically require 5-20%. FHA as low as 3.5%.

📝

Closing Costs

$8,000 - $20.0K

Lender fees, title insurance, appraisal, attorney, escrow. Typically 2-5% of home price.

🔍

Home Inspection

$300 - $800

General inspection + pest, radon, sewer scope if needed.

📋

Appraisal

$300 - $600

Required by lender to confirm the home's value.

🚚

Moving Costs

$1,000 - $5,000

Professional movers, truck rental, packing supplies.

🛋️

Furniture & Appliances

$3,000 - $15.0K

Filling rooms, replacing aging appliances, window treatments.

🔧

Immediate Repairs

$1,000 - $5,000

Paint, carpet, locks changed, minor fixes found in inspection.

Annual Recurring Costs

🏛️

Property Tax

$1,200 - $10.0K/yr

National average ~1.1% of home value per year. Ranges from 0.3% to 2.5% by state.

🛡️

Homeowner's Insurance

$1,000 - $3,000/yr

Typically $1,000-$3,000/year depending on location and coverage.

🔨

Maintenance & Repairs

$4,000 - $8,000/yr

The 1% rule: budget 1-2% of home value per year for maintenance.

🏢

HOA Fees

$0 - $8,400/yr

If applicable. Condos and planned communities: $200-$700/month.

📊

PMI (Private Mortgage Insurance)

$0 - $5,400/yr

Required if down payment < 20%. Typically 0.5-1.5% of loan amount/year.

What to Do About It

Save more than just the down payment. Budget an extra $5,000-$15,000 for closing costs, moving, and immediate repairs. Don't drain your emergency fund.

Get pre-approved, not just pre-qualified. Pre-approval involves full income/asset verification and gives you a stronger offer. It also reveals the true monthly cost including taxes and insurance.

Follow the 28/36 rule. Housing costs (mortgage + taxes + insurance) shouldn't exceed 28% of gross income. Total debt payments shouldn't exceed 36%.

Shop your mortgage rate. Even a 0.25% rate difference on a $320K loan saves $15,000+ over 30 years. Get quotes from at least 3 lenders.

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Cost of Buying a House

💰 Set Your Home Price

Upfront Costs

Down Payment

Closing Costs

Home Inspection

Appraisal

Moving Costs

Furniture & Appliances

Immediate Repairs

Annual Recurring Costs

Property Tax

Homeowner's Insurance

Maintenance & Repairs

HOA Fees

PMI (Private Mortgage Insurance)

What to Do About It

Get Glen’s Updates

Frequently Asked Questions

Tools & books I actually use and recommend

The Psychology of Money

The Little Book of Common Sense Investing

TradingView

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