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For the first time in nearly a decade, America’s interest rates have seen an increase. 

The rate hike is a small one—with the Federal Reserve raising rates on December 17, 2015 from a range of 0% to 0.25% to a range of 0.25% to 0.5%—but will have an impact on many new home buyers. 

Although the increase isn’t a welcomed change for investors and home buyers, it’s a good indicator of the economy healing and becoming stronger since the Great Recession. Thankfully the unemployment rate is now at 5%, as opposed to 10% in 2009 during the worst of the job crisis. Now that more than 12 million jobs have been added since the recession and wages are finally beginning to creep upward, the economy is looking much better than it has the last few years. 

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Many of us have had the same thought when considering the move from apartment life to purchasing our first home: “The mortgage payment would be the same/cheaper than my rent!”

Although on paper that may be correct, there are several other costs that come with being a homeowner that may not be so obvious. So, how much house can you actually afford? 

Here are some of the hidden costs of homeownership that you should consider when deciding on a budget for your first home. 

Utilities

The concept of paying for utilities probably isn’t new, since you most likely had to budget for that in addition to rent. However, the cost of heating and cooling a small apartment versus a larger home can be a significant jump. Go ahead and factor in this…