HOA fees are soaring — use these tools to keep your unit affordable

Homeowners Association (HOA) fees are on the rise: The amount for regular dues jumped 44% to $757 between 2024 and 2025, according to HOA management software company Vantaca, which studied more than 3,300 associations.

And, with inflation hitting home maintenance costs and property taxes increasing across the U.S., a higher HOA fee can quickly make your monthly housing costs even higher. If you’ve gotten a notice that your dues are increasing this year, there are a few strategies and tools you can use to make your costs more affordable.

Part of the jump in fees is due to the increase for HOA master policies, which cover a community’s property and liability. Not only are policy premiums rising — the average premium nearly doubled between 2021 and 2025, from $53 per door to $105 per door for condo buildings, per Vantaca — but the risk is being shifted back to HOAs as deductibles rise while policies cover less.

For example, changes in wind and hail deductibles are shifting repair burdens onto HOAs. Deductibles for this kind of coverage are increasingly moving from more affordable flat-dollar models toward higher deductibles that are a percentage of the building’s insured value. In fact, 98% of HOA master policies had percentage-based wind and hail deductibles last year, compared to 40% in 2021, Vantaca found. This means HOAs may need to cover a larger deductible for claims related to this kind of damage.

Policies are also shifting from replacement cost value — which pays the cost to repair an item without accounting for depreciation — toward actual cash value policies, which factor in an object’s depreciation before damage into the payout. The share of HOAs with replacement cost coverage dropped from 88% to 78% between 2021 and 2025, leaving more HOAs to cover the depreciation of damaged property on their own.

Lastly, insurance isn’t the only rising cost HOAs are passing on to owners: costs for landscaping, snow removal and routine maintenance have also added pressure to associations’ budgets, according to community and property management platform ManageCasa.

Condo insurance isn’t something you can opt out of — it’s typically required by the terms of your mortgage. Even if you’ve paid off your home, your HOA could also require you to keep a policy in place.

The average individual condo insurance policy costs $15 to $50 per month, according to data from insurance comparison site The Zebra. Prices vary based on your home’s location, square footage and the value of your personal belongings.

While you may not be able to sway the cost of your HOA’s master policy, you can shop around for your unit’s policy. Getting quotes from a few insurers and comparing them is the best way to keep your coverage affordable.

Lemonade is one of our top condo insurance companies, offering quick claims and quotes online to make shopping a breeze.

Travelers is another one of our picks for its flexible coverage, including options for replacement cost coverage — which can pay out without accounting for depreciation after you file a claim. It also offers higher coverage limits for valuables that don’t require appraisals.

You can save hundreds to thousands a month by refinancing your mortgage to a lower rate — even if it’s by a half a point.

For example, CNBC Select did the math to find out just how much a homebuyer who took out a mortgage on a median-priced home — which was $400,500 as of January — could save by refinancing from a 7.0% rate to a 6.5% rate.

To crunch the numbers, we assumed the buyer would put 10% down, meaning the mortgage would be $360,450. If the homebuyer did refinance this mortgage to get this rate change, they would save more than $100 monthly and over $40,000 over the term of the loan.

You can figure out how much you could save with our refinance calculator:

If you’re planning to refinance to save money, you should choose a lender known for its low rates.We love Better for that exact reason — it consistently offers mortgages at lower-than-average rates.

We also like that it gives borrowers the option to roll their closing costs into their loan — which could save them 2% to 6% of the loan value up front. Keep in mind, this means your loan will be larger than it was previously, so make sure the rate change offsets that cost over time.

If you want a low rate but prefer a credit union experience, we’d recommend FourLeaf Credit Union. It offers lower-than-average rates and it’s easy to join — all you need to do is put $5 into a FourLeaf savings account.

Select likes that it also offers free financial counseling and has a slick, easy-to-use mobile app.

While saving for these kinds of things on your own is one way to handle them, you could also turn to a home warranty for these kinds of repairs. With these plans, you buy coverage for a year, and then pay a small fee when you need a repair. Typically, your home warranty company can even arrange a professional for you, though some policies allow you to choose your own contractor.

Select Home Warranty is one of our top choices for its affordable service call fees, ranging from $60 to $75. This brand also often includes roof-leak repair coverage, which other brands typically exclude.

American Home Shield also has higher limits than many competitors for expensive HVAC systems and appliances.

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