What Is a Home Warranty, and Should I Get One?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. A Home Warranty Covers Major Home Systems and Appliances
A home warranty is a service contract that helps cover the repair or replacement of major systems and appliances in your home, such as:
HVAC systems
Kitchen appliances (dishwasher, oven, fridge)
Plumbing and electrical systemsIf one of these systems breaks down due to normal wear and tear, the warranty can help cover the cost of repairs, saving you money on unexpected fixes.
When budgeting for your home purchase, it’s important to account for both mortgage payments and potential maintenance costs. Calculate your Conventional Purchase Loan Payment now to see your total monthly housing expenses and plan for additional costs like warranties.
2. It Can Provide Peace of Mind, Especially for First-Time Homebuyers
If you’re a first-time buyer, especially if you’re purchasing an older home, a home warranty can give you peace of mind during the first year of ownership.
If your new home’s furnace breaks down in the winter or your washing machine stops working, you won’t have to worry about finding and paying for a repairman right away.
��� Knowing that you’re covered can make your home-buying experience less stressful, especially in the first few months.
As a first-time buyer, understanding all your financing options helps you preserve cash for unexpected repairs. Calculate your FHA Purchase Loan Payment now to see how low down payment options can help you keep funds available for home maintenance and warranties.
3. Weigh the Cost Against the Potential Savings
Before deciding on a home warranty, it’s important to consider the cost of the warranty vs. the potential savings it offers.
Home warranties typically cost anywhere from $300 to $600 a year, with a service fee for each repair.
While the warranty can cover expensive repairs, sometimes the cost of the warranty and the service fees might not be worth it, especially if the home is in good condition or you have the savings to cover potential repairs yourself.
Do the math—sometimes it’s better to save that money in case something breaks down, rather than pay for a warranty that you might not use.
Whether you choose a warranty or self-insure with savings, understanding your complete financial picture is key. If you’re a veteran, calculate your VA Purchase Loan Payment now to see how zero down payment financing can help you preserve cash for home maintenance emergencies.
Ready to Decide if a Home Warranty Is Right for You?
At Stairway Mortgage, we help you understand all the costs of homeownership—so you can make smart decisions about warranties, maintenance, and budgeting.
At Stairway Mortgage, we help you make informed decisions—so you can focus on enjoying your new home.
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