California Mortgage Calculator | Ascension
The Californian real estate market
The US real estate market is hot right now due to limited inventory, which has pushed up home prices. In California, the median home value is $ 586,659, according to Zillow, but that doesn’t say the whole story. In some parts of the state, home values are much higher.
Take Los Angeles, where the median home value is $ 768,046. San Francisco, meanwhile, has a median home value of over $ 1.4 million. Typically, living in or near a large city will result in a much higher house price – and a much higher mortgage payment. Plus, buying from a tech hub like San Jose could cost you close to a million dollars in what is essentially a starter house.
How do I calculate my mortgage payment?
California mortgage rates are relatively low right now, as are rates nationally. To calculate your monthly mortgage payments in California, you’ll need to include your estimated mortgage amount, your loan term, and the rate you think you qualify for. The term of your loan is the number of years you have to pay off your mortgage. Keep in mind that the higher your credit score, the more likely you are to get the most competitive rate available.
For example, imagine the average California mortgage rate for a 30-year fixed loan is 2.945%. If you take out a loan with this term, you will owe $ 418.37 per month in principal and interest for every $ 100,000 you borrow. However, you will need to factor in other monthly expenses, such as home insurance and property taxes. You may also need to consider private mortgage insurance (PMI). For example, PMI kicks in if you don’t put down a 20% down payment on your home. You can also end up buying a home in California that is part of a homeowners association, in which case you will also have to pay a separate monthly fee for that. These fees, however, buy you the upkeep of common areas and usually include services like garbage pickup.
This is why it is useful to use our California home loan calculator. Our tool will help you break down your costs so you can see what your monthly mortgage payments will look like in different scenarios.
If you’re looking to refinance an existing mortgage, our California mortgage calculator can also help you figure out your monthly payment – and you can check out our list of the best refinance lenders to start that process.
If you want to calculate your mortgage payments yourself, without a calculator, you can use this formula:
What to Know Before Buying a Home in California
Before buying a house in California, it is important to make sure that you are financially prepared. You will need:
You should also be aware of some specific issues when buying a home in California. On the one hand, California is subject to extreme weather conditions, such as earthquakes and wildfires. If you are looking to buy in an area prone to forest fires, your home insurance could be quite expensive. And, depending on where your home is located, you may need to purchase special earthquake insurance.
Some areas of California also experience extreme heat, which could damage your property if not properly protected. If you are planning to buy in an area near Death Valley, for example, you will need to make sure that the house you are purchasing is built to withstand intense heat. Your home inspector should be able to help you.
Tips for first-time home buyers in California
The California Housing Finance Agency has a number of programs in place to help first-time home buyers. Some programs you may want to consider include:
- The CalHFA Loan Program, which is a 30-year FHA insured loan.
- The CalPLUS FHA program, which is similar to the previous one but with a slightly higher interest rate. It is combined with the CalHFA zero interest program for closing costs.
- The CalHFA VA loan program, which is suitable for veterans.
- The CalHFA USDA program, which allows you to apply for a USDA home loan if you buy a house in a rural area that qualifies for this type of mortgage.
California also has a down payment assistance program known as the MyHome Assistance Program, the details of which depend on the type of mortgage you are applying for. Your assistance under this program is generally capped at $ 10,000.
Another thing you should know if you are buying a home for the first time: It is worth shopping around with different mortgage lenders to see which offers you qualify for. Each lender sets their own rates and closing costs, so the more offers you receive, the better able you will be to determine if you are getting a good deal. And don’t forget, you can always insert each offer into our California mortgage payment calculator to figure out what your monthly payment will look like.
Are You Ready To Get A California Mortgage?
If you are in a good financial position to own a home and are certain that California is the right state to buy, it pays to use our California Mortgage Calculator. This way you can run the numbers and see the actual monthly payment you sign up for. A common mortgage mistake is borrowing the amount you’re approved for, only to find that the payments are beyond your financial comfort zone. Rather than taking that risk, use our California Mortgage Calculator to get a clear idea of what your budget will look like after purchasing your home.