Can You Afford Your Mortgage on a Single Income? A Guide for Life's Transitions

As you know, life — and relationships — can change suddenly. Whether you're navigating a divorce or grieving the loss of a spouse, the toll is more than emotional; it’s financial. One of the most pressing questions you may face is: “Can I afford to keep my home on a single income?”

It's a question that deserves more than a quick yes or no answer. While your mortgage payment might seem manageable at first glance, the reality of homeownership costs extends far beyond that monthly check to your lender. It’s essential to understand the complete picture of what it truly costs to maintain your home so you can make the best decision for your financial future. Below, we’ll cover everything you may need to consider about your home costs as you weigh your options, including:

• Understanding the Full Cost of Homeownership
• Hidden Expenses That Add Up
• How to Evaluate if You Can Afford Your Home on a Single Income
• Creating a Realistic Single-Income Budget
• Options If Your Home Becomes Unaffordable
• Taking Control of Your Financial Future

Understanding the Full Cost of Homeownership

When most people think about housing affordability, they focus primarily on the mortgage payment. But while that’s important, it's just one piece of a much larger financial puzzle. The true cost of homeownership also includes property taxes, insurance, maintenance, repairs, utilities, and unexpected emergencies.

Homeowners are typically advised to spend between one to four percent of their home's value annually on maintenance and repairs alone. For a $400,000 home, that could mean $4,000 to $16,000 per year — or $333 to $1,333 per month — on top of your mortgage payment.

This is why understanding your complete financial picture is so important, especially when you’re transitioning to a single income. What seemed affordable with two incomes might strain your budget when you're covering all the costs alone.

Hidden Expenses That Add Up

A single-income mortgage requires careful consideration of all the expenses that come with homeownership. Here are the key costs you need to account for:

• Property taxes: These vary significantly by location and often increase over time. In some states, annual property taxes can equal several months' worth of mortgage payments.
• Homeowners insurance: This essential protection typically costs between 0.5-2% of your home's value annually, and rates have been rising in many markets.
• Homeowners association (HOA) fees: If your home is part of a homeowners association, these mandatory monthly or annual fees can range from under $100 to over $500 per month.
• Utilities: Electricity, gas, water, sewer, trash, and internet services can easily total $300-600 per month or more, depending on your home's size and location.
• Maintenance and repairs: From HVAC servicing to roof repairs, lawn care to appliance replacements, these costs are ongoing and often unpredictable.
• Landscaping and yard care: Whether you handle it yourself or hire professionals, maintaining your property's exterior has both time and financial costs.

Each of these expenses can fluctuate throughout the year, making it challenging to budget accurately without a clear understanding of your total costs.

How to Evaluate if You Can Afford Your Home on a Single Income

Once you have a clear picture of your total homeownership costs, you can evaluate affordability using the following steps:

1. Compare housing costs to income

Financial advisors traditionally recommend keeping housing costs below 28% of your gross monthly income. However, for a mortgage as a single person, you might want to be even more conservative. Calculate what percentage of your income would go toward all housing-related expenses.

2. Review other financial obligations

Consider any car payments, student loans, credit card debt, healthcare costs, and everyday living expenses. After accounting for all your obligations, how much income do you have left for savings and discretionary spending?

3. Build in a buffer

Life on a single income requires a financial cushion. Can you comfortably cover your housing costs while still contributing to an emergency fund? Experts recommend saving 3-6 months of expenses for unexpected situations.

4. Consider future changes

Could your income increase or decrease in the coming years? Are major home repairs likely on the horizon? Thinking ahead helps you avoid future financial stress.

5. Factor in emotional attachment

While numbers are important, so is your emotional connection to your home. Sometimes keeping the house is worth making other financial sacrifices — but only if the math still makes sense.

Creating a Realistic Single-Income Budget

If you're committed to staying in your home, creating a detailed budget is essential. Here's how to approach it:

Start by determining your baseline housing costs. Then, track every expense for at least one month to understand your complete spending patterns.

This Cost of Homeownership Calculator can help you add up all of the hidden costs quickly and easily.

Then, categorize your expenses into essential and discretionary spending. Essential costs include housing, food, transportation, healthcare, and insurance. Discretionary spending covers entertainment, dining out, subscriptions, and non-essential purchases.

Look for areas where you can reduce spending without significantly impacting your quality of life, too. For example, could you refinance your mortgage to lower your monthly payment? Are there subscription services you no longer use? Can you reduce energy costs through efficiency improvements?

Finally, set realistic savings goals. Even if you can only save a small amount to start, building an emergency fund should be a priority. This cushion will help you handle unexpected home repairs or other financial surprises without derailing your budget.

Options If Your Home Becomes Unaffordable

After taking a careful look at your finances, you might determine that keeping your home on a single income simply isn't feasible. That's a difficult realization, but it's better to face it proactively than to struggle with payments and risk foreclosure.

If selling seems like your only option, you have several alternatives to consider:

• Refinancing your mortgage: If interest rates have dropped since you bought your home, refinancing could lower your monthly payment. However, extending your loan term might mean paying more interest over time. Related read: When is a Good Time to Refinance?
• Taking in a roommate: Renting out a bedroom or separate living space can help you bring in more income to cover your housing costs. However you’ll want to make sure this arrangement is allowed under your mortgage terms and local regulations.
• Home equity solutions: If you have significant equity built up in your home, you can explore options that allow you to access it without taking on an additional monthly payment. A Hometap Investment, for example, provides a lump sum of cash up front with no monthly payments, giving you financial flexibility and keeping you in your home.
• Downsizing: Selling your current home and moving to a smaller, more affordable property might be the most sustainable long-term solution. While emotionally challenging, this choice can provide financial relief and a fresh start.

Each option has pros and cons, and the right choice depends on your specific circumstances, future goals, and emotional needs.

Taking Control of Your Financial Future

Determining whether you can afford your mortgage on a single income requires honesty, plus some careful calculation and planning. It's not just about your mortgage payment — it's about understanding every homeownership-related cost and deciding whether those expenses fit into your new financial reality.

Whether you decide to keep your home, explore alternative financing options, or make the difficult choice to sell, the most important thing is making an informed decision based on the numbers — not on hope or fear.

Your home represents security, memories, and the life you’ve built up until this point. But it's also a financial commitment that needs to work for your current circumstances. You deserve to give yourself the clarity you need to make the right choice.