According to recent research, the mortgage payment in California is around $2,282 per month. However, some recent buyers in Southern California report payments in the $760,000 range.
Prices vary depending on the area of California where you live and the type of property you own. California is also one of the most expensive states in the country for housing.
Factors Affecting Mortgage Payments in CA
Before buying your home, you should calculate how much your mortgage payment will be; as you might expect, the more expensive the house, the higher the mortgage payment will be. For that reason, properties in California’s major cities have a higher mortgage than in other areas.
The mortgage payment in areas like San Francisco is higher because it is one of California’s most sought-after and recognized cities. To avoid having higher costs than you can afford, you can estimate the price like this:
- The down payment: if the down payment you paid for the house is high, it will reduce the monthly mortgage payments considerably over time
- The mortgage rate: this will be the interest you agree to pay for the loan; the lower the monthly payments, the more affordable they will be
- A fixed-rate loan or an adjustable loan: you have both decisions available from the beginning; flexible loans will indicate higher monthly payments because mortgage rates can fluctuate
To get the best mortgage rates in California, we recommend you shop around for different lenders and choose properties with good rates. Undoubtedly, this is the safest way to get affordable rates.
Are there special benefits for California mortgages?
If you are lucky, you can qualify for mortgages with specific benefits by getting a lower than average mortgage rate. One of the beneficiaries is teachers; in different cities in California, you will enjoy lower interest rates to buy your home.
For veterans, there are facilities regardless of their credit score or down payments, while for new residents, there are FHA loans. These loans do not usually guarantee a lower interest rate, making buying a home easier.
Existing mortgage payment scenarios in California
Depending on the fixed-rate, i.e., 15-year, 20-year, or 30-year, you can determine how mortgage payments change. Evaluating the different scenarios gives you a picture of the average prices according to the loan amounts.
Average 15-year fixed mortgage payment
| 15-year fixed rate | $200,000.00 | $400,000.00 |
| 3,25% | $1,405.34 | $2,810.68 |
| 2,75% | $1,357.24 | $2,714.49 |
| 2,25% | $1,310.17 | $2,620.34 |
Average 20-year fixed mortgage payment
| 20-year fixed rate | $200,000.00 | $400,000.00 |
| 3.375% | $1,147.11 | $2,294.23 |
| 2.875% | $1,096.72 | $2,193.44 |
| 2.375% | $1,047.67 | $2,095.34 |
Average 30-year mortgage payment
| 30-year fixed rate | $200,000.00 | $400,000.00 |
| 3,50% | $898.09 | $1,796.18 |
| 3,00% | $843.21 | $1,686.42 |
| 2,50% | $790.24 | $1,580.48 |
Average Mortgage Payment in CA Counties
In Los Angeles the average payment is $3,426, in Naranja it is $4,159, in Riverside $2,337, San Bernardino $2,056, San Diego $3,328 and Ventura $3,228. As you can see, almost all the prices are high, but in places like San Bernardino you can have better rates.
That is why it is recommended to consider the house’s price and the type of city where it is purchased. That way, you will know what you will have to pay for the mortgage.