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Financing Your First Home: Understanding Expenses Beyond the Mortgage

Edward Goldstein, CFP |
Categories
Financial Planning

Buying your first home is a significant milestone that brings both excitement and responsibility. Whether you’re considering a cozy condo or a spacious family home, understanding the full financial picture is crucial. As a Certified Financial Planner (CFP) serving Marlton, NJ, and the surrounding Pennsylvania communities, I’m here to help you navigate the complexities of homeownership and its impact on your overall financial plan.

Understanding the True Cost of Homeownership in 2026

While mortgage brokers quickly inform you of how much home you can afford, many first-time buyers overlook the additional expenses that come with owning a home. Here’s what you need to consider:

1. Down Payment

Traditional mortgages in 2026 typically require a down payment ranging from 5% to 20%, depending on your credit profile and the home’s price. VA loans still offer zero down payment options for eligible veterans, while FHA loans require as little as 3.5%. For example, on a $300,000 home in Marlton, you might expect to put down between $15,000 and $60,000.

2. Closing Costs

Closing costs rose slightly due to inflation and market changes in 2025, generally ranging from 3% to 6% of the purchase price. They may see more slight changes in 2026 due to inflationary pressure and changes in lender fees. For a $300,000 home, expect to pay between $9,000 and $18,000 in closing fees. These costs include title insurance, appraisal fees, and lender charges.

3. Homeowners Insurance

Homeowners insurance premiums have increased on average by 5-7% nationwide in 2025. In Marlton, NJ, expect to pay roughly $1,200 to $1,800 annually, depending on your home’s size, age, and location. This is typically about twice the cost of renter’s insurance, which many first-time buyers may already have.

4. Property Taxes and Local Considerations

Property taxes are a significant factor in your monthly housing costs and can vary widely depending on where you live. As of 2025, Marlton’s median property tax rate is approximately 3.07%, reflecting New Jersey’s status as the state with the highest property tax rates in the nation. However, within New Jersey, rates vary considerably by county and municipality, ranging from about 0.7% to as high as 4.13%. This variability means your exact tax bill will depend heavily on your specific location within the state.

New homebuyers should be aware that property taxes on newly constructed homes may initially be based on the unimproved land value, with reassessments occurring after construction completion, potentially increasing your tax bill. New Jersey continues to offer property tax relief programs for eligible homeowners, including senior citizen deductions and homestead rebates, which can help mitigate costs.

Across the border in Pennsylvania, the average effective property tax rate statewide is approximately 1.41%, with county-level rates generally ranging from 0.83% to 2.05%. This means that if you’re considering properties near Marlton or in Pennsylvania, your tax obligations will differ significantly.

For a deeper dive into New Jersey’s property tax landscape and available tax relief programs, you can read more in this detailed article: Navigating New Jersey’s 2025 Tax Landscape: Essential Insights.

5. Maintenance and Repairs

Unlike renting, homeowners are responsible for all maintenance—from landscaping and painting to major repairs like HVAC systems and appliances. Budgeting 1-3% of your home’s value annually for upkeep is a prudent approach.

6. Utilities and Other Expenses

Utility costs can increase significantly when moving from an apartment to a house. You may face new bills for water, sewer, waste disposal, heating, gas, and electricity. Deposits may be required to initiate services. Older homes, common in Marlton and Pennsylvania, may have higher energy costs due to less efficient systems.

2026 Updates and Trends to Watch

  • Mortgage Interest Rates: Mortgage rates in 2026 are expected to remain elevated compared to early 2020s lows, influenced by Federal Reserve policies aimed at controlling inflation. Buyers should anticipate slightly higher borrowing costs, which affect monthly payments and affordability.
  • Loan Qualification Standards: Lenders continue to tighten credit requirements post-pandemic, emphasizing debt-to-income ratios and credit scores. First-time buyers should prepare for more thorough documentation and possibly larger down payments to qualify.
  • Property Tax Adjustments: Some municipalities in New Jersey and Pennsylvania are reviewing property assessments due to changing real estate values. Buyers should stay informed about local reassessment cycles that may impact future tax bills.
  • Energy Efficiency Incentives: Both NJ and PA offer new or expanded incentives for energy-efficient home improvements and new construction, which can reduce utility costs over time and may qualify for tax credits or rebates.
  • Insurance Market Changes: Homeowners insurance markets remain dynamic, with some insurers adjusting premiums based on climate risk factors. Buyers should shop around and consider policies that offer comprehensive coverage at competitive rates.

Integrating Homeownership into Your Financial Plan

Purchasing a home is not just a standalone expense—it impacts your entire financial landscape. As your CFP, I can help you understand how your mortgage, taxes, insurance, and maintenance costs fit into your broader financial goals, including retirement planning, investment management, and insurance coverage. This holistic approach ensures you remain financially secure while enjoying your new home.

Local Financial Resources and Opportunities

Marlton and the surrounding region offer unique financial resources, including first-time homebuyer programs, local tax incentives, and community investment opportunities. Leveraging these can enhance your financial position and make homeownership more affordable.

Conclusion: Take the Next Step with Expert Guidance

Buying your first home is a significant decision with lasting financial implications. To ensure you make informed choices, click here for a free consultation at https://www.flplanning.net/free-consultation. As a Certified Financial Planner, I provide personalized guidance to help you integrate your home purchase into your complete financial picture, empowering you to move forward with confidence.

If you are seeking trusted financial planning and services in Marlton, NJ, or nearby areas, our firm is dedicated to providing comprehensive support tailored to your unique needs. Together, we can build a secure financial future while making your dream home a reality.

Edward C. Goldstein, CFP®, MBA, President
CERTIFIED FINANCIAL PLANNER ™ Practitioner 
Financial Life Planning, LLC
10,000 Lincoln Dr. East, Suite 201
Marlton, NJ  08053
Phone: 856-988-5480
Fax: 908-292-1040