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Home repairs: Unexpected bills can pack a wallop

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BROKEN ARROW, Okla. — Owning a home comes with lots maintenance. The yard needs upkeep. You need to paint inside and out. Carpets need cleaning. The HVAC system and water heater need annual servicing. The list can feel endless and expensive.

Now, suddenly, you need to cough up a lot of cash for an unanticipated repair like when shingles blow off the roof, the washing machine starts making funny noises, or a light switch needs replacing.

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So, how do you take the sting and stress out of these situations? Set up a separate home repair and maintenance fund in a high yield savings account to be used only for maintenance and repair expenses.

Coping with the cost of mini or major repairs and home maintenance is easier when you have cash on hand—instead of putting the expense on your credit card or financing it with a loan, which adds interest and drives up the cost.

Bankrate's Unexpected Costs of Home-ownership survey found that slightly less than a quarter of homeowners set aside money for home repairs and maintenance.

And, about one in five needed to take on debt to cover the cost of unexpected home repairs.

It's"What does it cost to own a home in 2025" report helps homeowners understand maintenance and repair expenses.

Saving for regular maintenance and emergency repairs doesn't have to be scary or take a big bite out of your budget according to Alex Gailey with Bankrate.

“Set aside 2 to 4 percent of your home's value every year for maintenance and repairs. It’s important that the fund is in a high-yield savings account so that you are earning interest on those savings, and it’s growing on its own.”

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After figuring out what you need to save for the year, divide by 52. This gives you the amount to deposit into your home maintenance and repair savings account each week.

This chart is also helpful.

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So you don't overlook making regular deposits to you fund, use automatic transfers into it.

A general rule of thumb for figuring annual home maintenance costs is to budget 1% of your home’s value for routine upkeep and 3% for unexpected breakdowns and repairs.

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