The Cost of Upkeep

Editor's note: As a special feature for April, TheStreet.com is offering a series of 20 stories on everything you need to know about real estate. Today's installment is Part 9.

How much house can you afford? The answer may be less than you think -- a lot less. And not just because the teaser rates on your adjustable-rate mortgage will inevitably reset, pushing the monthly payments higher. Many prospective homeowners fail to take into account the ongoing costs of maintaining a house and the surrounding property.

If you've been house-hunting lately, you may have gotten one of those flyers real estate brokers like to hand out showing what your monthly payments would be after factoring in the tax deduction for the interest on a mortgage. Don't be fooled. Chances are you will have spent that money long before you get the refund check from the IRS.

Do you have any idea what the monthly utility bills on a 2,400-square-foot house are like? (That's the average size of new construction, according to the 2005 U.S. Census.) Depending on how old and drafty the house is and what part of the country you live in, they could rival your mortgage payments during the colder months.

If your utilities have been covered in your rent, this may be new for you. In addition, you might have homeowner association or condo association dues. You'll definitely have property taxes, and you also may have city or county taxes. While taxes normally are rolled into your mortgage payment, this isn't always the case.