Column: Hidden costs of home ownership can add up quickly

A home is the most expensive purchase many people ever make. Buyers understand that certain costs come with home ownership. However, some expenses can catch even the savviest savers off guard — and in recent years, those extra costs have been surging.

The following are some of the unexpected expenses that come with living the homeowner dream:

— Property taxes: Depending on location, property taxes can make up a large portion of monthly expenses. Some people pay their property taxes separate from their mortgage payments, while others wrap them into the mortgage bill. Business Insider reports that New Jersey currently has the highest effective property tax rate in the United States, with a median bill of $9,000 annually. Hawaii has the lowest, with homeowners paying about $2,000 annually. 

— Home insurance: CNN Business reports that premiums have surged in recent years, largely due to extreme weather. In the U.S., insurance rates jumped 11.3 percent nationally last year, according to S&P Global. Severe storms, hurricanes and wildfires cost insurers nearly $101.3 billion in claims, and those losses have been passed on to homeowners.

— Mortgage insurance: Many buyers cannot provide the standard 20 percent down payment necessary to avoid mortgage insurance. Lenders require borrowers to take out private mortgage insurance to offset risk. Credit Karma says PMI depends on down payment and credit score but typically ranges from 0.2 to 2 percent of the loan amount per year. PMI can be dropped once a homeowner reaches 20 percent equity.

— Maintenance: Even new homes require upkeep. Bankrate estimates that maintenance costs average $3,018 annually, with an additional $3,300 for improvements. Lawn care, cleaning, pest control, replacing smoke alarms and batteries, roof repairs and gutter cleaning all add up.

— HOA and CDD fees: Some communities impose homeowners association fees for neighborhood maintenance, landscaping and snow removal. Community Development District fees are imposed by developers to finance amenities. Homeowners should factor in these charges before buying.

In addition, utility payments can be a major annual expense. Choosing a plan that offers a fixed monthly rate can help families budget more effectively.

Home ownership can be costly. Buyers would be wise to familiarize themselves with the hidden costs before making the largest purchase of their lives.