Top 5 Expenses to Expect When Buying a New Home in 2025
Top 5 Expenses to Expect When Buying a New Home in 2025
Buying a home is a huge step, and it’s okay to admit that it feels a little overwhelming. You’ve probably heard the terms “down payment”, “closing costs”, and “interest rates” thrown around, but what do they actually mean for your budget, and what’s this going to look like in a place like Helena, Billings or Missoula?
At McCall Homes, we believe in making the homebuying process as simple and transparent as possible, so read on to see a breakdown of what it really costs to buy a home today.
1. The Down Payment
You’ve probably heard the myth that you need 20% down to buy a home, but the good news is that’s not true anymore.
- Many first-time buyers qualify for loans with as little as 3% down.
- For example, if you’re buying a $350,000 home, 3% down would be $10,500.
- There are also down payment assistance programs in Montana that can help you cover this cost.
The more you put down however, the lower your monthly payment, but don’t let the idea of 20% stop you from getting started.
2. Closing Costs
This is one that many first-time buyers don’t always expect: closing costs include things like title fees, loan origination fees and appraisal charges.
- These usually total around 2-5% of the home’s purchase price.
- So on that same $350,000 home, you could also pay $7,000 to $17,500 in closing costs.
At McCall Homes, we sometimes have incentives available, like our current Summer to Save promotion, that can potentially help you cover some or all of these costs.
3. Your Monthly Payment
When you hear, “monthly mortgage payment”, don’t forget that depending on where you buy, this could also include:
- Principal and interest (your actual loan)
- Property taxes
- Homeowners insurance
- HOA dues (if applicable)
- Mortgage insurance (if your down payment is less than 20%)
For that $350,000 home with 5% down and a typical interest rate, you might end up paying around $2,500-$2,600, depending on your location and taxes, so make sure you thoroughly look through every item that will be coming up on your monthly payment.
4. Interest Rates
Interest rates change frequently, and even a small increase can significantly affect your monthly payment over time.
- A 1% change in interest could sometimes mean a $200+ difference in your monthly costs.
- Working with our team helps you explore the best rate possible, and lock it in if rates are on the rise.
- If rates drop later, you can always explore refinancing your home in order to get those lower rates.
5. Upfront Costs Beyond the Loan
There are a few other things to keep in mind when you’re budgeting:
- Home inspection (optional but highly recommended): $300-$500
- Earnest money deposit (goes toward your down payment once the sale finalizes): Often 1-2% of the purchase price
- Moving expenses, utility setup fees and new furniture
You’re Not Alone
There’s no denying that buying a home is a big financial move, but it’s also a smart one. When you build with our team at McCall Homes or purchase one of our quick move-in homes, we’ll walk you through every payment and every step of the process:
- Connecting you with trusted local lenders
- Helping you understand your financing options
- Finding available homes within your budget
- Guiding you through closing day
We’re here to clear up the process so you can feel confident in your new home purchase, not confused.
Take the First Step
If you’re dreaming about your new home, our team is here to help you figure out what’s affordable for you, answer your questions without pressure and get you closer to homeownership in a community that fits your life. When you’re ready to take the next step toward your new home in Helena, Billings or Missoula, give us a call at (406) 651-5354 or fill out our online form today.