When folks think about buying a home, the first question is usually, “What’s the price?” But after 30 years in mortgages, I can tell you it’s the annual cost of owning that shapes your real budget. Recent research breaks this down: economists estimate the average annual user cost hovers around 5% of a home’s value nationwide. But, just like every borrower’s story is different, local numbers swing widely—from nearly 7% in some markets to about 2% in others. Picture this: two homes, each listed at $500K. One could cost you $35K a year to own, while the other just $10K—a huge difference, especially if you’re comparing renting versus buying. Rules changed after the 2018 tax law, too: with more people taking the standard deduction, the old tax benefits tied to homeownership aren’t what they once were. The takeaway? When you’re weighing your options, look past sticker price. Compare what it’ll actually cost to own each year against local rent. That’s the kind of practical approach I bring to every mortgage conversation—especially for those with unique income stories.
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