What Are the Costs When Buying a Home in Peoria, AZ? A Complete Breakdown

Buying a home is one of the most significant financial decisions you’ll ever make. While many homebuyers focus on the down payment and mortgage, there are numerous other costs involved in purchasing and maintaining a home.

If you’re planning to buy a home in Peoria, Arizona, it’s crucial to understand all the expenses so you can budget accordingly and avoid surprises. This guide provides a complete breakdown of what it really costs to buy a home—from initial purchase expenses to long-term financial commitments.

Upfront Costs When Buying a Home

The first expenses you’ll encounter when purchasing a home include your down payment, closing costs, and upfront fees required before you get the keys.

Down Payment

Your down payment is the initial amount you pay toward the home’s purchase price. The percentage required depends on your loan type:

• Conventional Loan: 3% – 20% down
• FHA Loan: 3.5% down
• VA Loan: 0% down (for eligible veterans and active military)

Example:
For a $450,000 home in Peoria:

• 3% down (Conventional Loan) = $13,500
• 20% down (No PMI required) = $90,000

Tip: The more you put down, the lower your monthly mortgage payment will be.

Closing Costs

Closing costs cover lender fees, title fees, taxes, and other legal expenses required to finalize the sale. These typically range from 2% to 5% of the home price.

Estimated Closing Costs for a $450,000 Home in Peoria:

• 2% Closing Costs = $9,000
• 5% Closing Costs = $22,500

What Do Closing Costs Include?

• Loan Origination Fee – Lender’s fee for processing the mortgage
• Appraisal Fee – Confirms the home’s value
• Escrow Fees – Legal paperwork and document processing

Tip: Some builders and sellers offer closing cost assistance, so be sure to negotiate!

Recurring Costs After Buying a Home

Once you’ve purchased a home, the financial responsibilities don’t stop. You’ll need to budget for ongoing expenses such as your monthly mortgage payment, property taxes, insurance, and utilities.

Monthly Mortgage Payment

Your monthly mortgage payment consists of:

• Loan Principal & Interest – Based on your mortgage amount and interest rate
• Property Taxes – Paid as part of your escrow
• Homeowners Insurance – Required to protect your home
• PMI (Private Mortgage Insurance) – If you put less than 20% down

Example Monthly Mortgage Payment for a $450,000 Home (Assuming 6.5% interest rate, 10% down, 30-year loan):
Approx. $2,900/month (including taxes & insurance)

Property Taxes in Peoria

Average Property Tax Rate in Peoria, AZ: 0.62% of the home value

Estimated Annual Property Tax for a $450,000 Home:

• 0.62% tax rate = $2,790/year (~$232/month)

What Affects Property Taxes?

• Location – Different neighborhoods have different tax rates
• Home Value – Taxes are reassessed annually based on market value
• Local Bonds & School Districts – Funding for schools, public services, and infrastructure

Tip: Property taxes can increase over time, so factor that into your budget!

Homeowners Insurance

Homeowners insurance protects your property from fire, theft, weather damage, and liability claims.

Average Cost in Peoria, AZ: $1,500 – $2,500 per year
Monthly Cost: $125 – $210/month

Factors That Affect Your Insurance Rate:

• Home’s location (risk of floods, wildfires, or crime rates)
• Home’s age and condition
• Coverage level and deductible amount

Tip: Compare multiple quotes and ask about discounts for bundling with auto insurance.

HOA Fees (If Applicable)

Many homes in planned communities, condos, and townhouses in Peoria have Homeowners Association (HOA) fees.

Average HOA Fees in Peoria: $50 – $300 per month

What Do HOA Fees Cover?

• Landscaping & community maintenance
• Pool, gym, and clubhouse access
• Exterior maintenance for condos/townhomes
• Security & gated community services

Tip: Check HOA rules and fees before buying, as some communities have strict regulations.

Utilities & Monthly Bills

Owning a home means paying for utilities such as electricity, water, gas, trash, and internet.

Average Monthly Utility Costs in Peoria, AZ:

• Electricity: $150 – $250 (higher in summer due to A/C)
• Water & Sewer: $50 – $100
• Gas: $30 – $70
• Trash & Recycling: $20 – $40
• Internet & Cable: $75 – $150

Tip: Investing in solar panels and energy-efficient appliances can reduce long-term costs.

Unexpected & Long-Term Costs

Many homebuyers forget to budget for maintenance and repairs.

Home Maintenance Costs

Every home requires ongoing upkeep. Experts recommend setting aside 1-2% of your home’s value per year for maintenance.

Annual Maintenance Budget for a $450,000 Home:
1% = $4,500 per year (~$375/month)

Common Home Repairs & Costs

• HVAC Servicing: $150 – $300/year
• Roof Repairs: $500 – $3,000 (Replacement: $10,000+)
• Pest Control: $100 – $500/year
• Plumbing Repairs: $150 – $2,000

Tip: If buying an older home, budget for higher maintenance costs.

Moving Costs

Moving expenses depend on how far you’re relocating and whether you hire movers or DIY.

Estimated Moving Costs:

• Local Move (Peoria Area): $1,000 – $3,000
• Cross-Country Move: $5,000 – $10,000+

Additional Costs:

• Packing Supplies: ~$200-$500
• Storage Unit (if needed): ~$100-$300/month
• New Furniture & Appliances: $2,000 – $10,000+

Tip: Get multiple quotes from movers to save money.

How to Budget Wisely for Homeownership

Owning a home is a long-term financial commitment, and understanding all the costs involved helps you prepare for both expected and unexpected expenses.

• Budget beyond just the mortgage—factor in taxes, insurance, and maintenance.
• Ask about closing cost assistance—some sellers or builders may help cover fees.
• Work with a Peoria Realtor—they can help negotiate deals and prevent hidden costs.

Ready to buy a home in Peoria? Contact a local Peoria Realtor today for expert guidance!

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