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Getting a mortgage in California is easier when you’ve done your homework in advance. Put a few basic facts into this California mortgage calculator and you’ll learn the monthly payment amount and total interest cost for your home purchase. You can also use the calculator to try out different scenarios to find the home price, down payment, and interest rate that are the best combo for you.
Key Points
• A mortgage loan calculator helps homebuyers quickly estimate the monthly and total costs of borrowing money to buy a home.
• Generally speaking, monthly mortgage payments should not exceed 28% of gross income.
• The calculator includes principal, interest, and estimated property tax.
• Extending the loan term can reduce monthly payments, making home buying more affordable.
• First-time homebuyer programs offer down payment and closing cost assistance.
California Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you’ve negotiated with the seller. This price may differ from the initial listing price and your first offer.
• Down payment: The down payment is the amount you plan to pay upfront. It’s often expressed as a percentage of the total home price. Buyers put down anywhere from 3% to 20%. Down payment assistance programs help some buyers pull together the necessary funds.
• Loan term: The loan term is the length of time you have to repay the home loan. Common terms are 15 or 30 years. A shorter term can reduce total interest paid but increases monthly payments. A longer term offers lower monthly payments but results in more interest overall.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates vary based on borrower qualifications, market trends, and loan type.
• Annual property tax: The annual property tax is levied by local governments on land and buildings within their jurisdiction, and is expressed as a percentage of a property’s assessed value. In California, property taxes are capped by state law and the effective tax rate is 0.7%.
• Monthly payment: The monthly payment represents what you would pay toward the loan’s principal and interest each month, plus a sum that goes toward your property taxes. It does not include home insurance, private mortgage insurance (PMI), or homeowners association (HOA) fees.
• Total interest paid: The total interest paid represents the amount of interest you will pay over the life of your home loan. A larger down payment, lower interest rate, or shorter loan term can reduce this amount.
• Total loan cost: The total loan cost represents the all-in amount you will pay for the loan, including both the principal borrowed and the accumulated interest.
How to Use the California Mortgage Calculator
Step 1: Enter Your Home Price
Type in the agreed-upon purchase price of the property.
Step 2: Select a Down Payment Amount
Choose the percent of the home price you will pay upfront. A larger down payment lowers your loan amount and also reduces your monthly payment and total interest paid.
Step 3: Choose a Loan Term
Select the length of time to repay the mortgage, anywhere from 10 to 30 years. A longer term lowers monthly payments but increases total interest.
Step 4: Enter an Interest Rate
Input your estimated interest rate to the second or third decimal point. Lower rates reduce monthly payments and total interest paid.
Step 5: Add Your Annual Property Tax Rate
Enter the percentage of your property’s market value for annual property tax. California’s effective property tax rate averages .7%. For the specific percentage in your area, search online for the property’s town, county, or ZIP code and “effective property tax rate.”
A mortgage calculator estimates monthly payments based on loan amount, interest rate, and term. Using it can help you determine affordability before house hunting — it will be particularly helpful if you’re buying your first home, because having a mortgage may be entirely new to you.
Comparing rates and terms aids in choosing the type of mortgage loan you will pursue — for example, whether you will have a fixed or variable interest rate. The calculator shows how a down payment impacts your loan.
In California, the median home sale price in mid-2025 was just over $830,000, well above the national median of around $443,000, according to Redfin. Lenders suggest a mortgage payment shouldn’t exceed 28% of gross monthly income. To afford a $830,000 home with a 20% down payment, you’d need an annual income of $192,000 if you took out a 30-year mortgage at 7.00%. This assumes you pay the average California property taxes and have home insurance costs of $2,500. Your monthly mortgage payment, including taxes and insurance, would be $4,417.
Another way to get a handle on how much house you can afford is to go through the mortgage preapproval process with a lender. You’ll emerge with a clear picture of your borrowing capacity.
Components of a Mortgage Payment
The main components of a mortgage payment are the principal and the interest. This mortgage calculator also factors in property tax, because property taxes are often included as part of your monthly loan payment. (It’s in your lender’s interest to make sure you keep up on your tax bills, after all.) Your monthly payment could also include private mortgage insurance (PMI, necessary if your down payment is below 20%) or homeowners association (HOA) fees, depending on your specific situation.
If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), use an FHA mortgage calculator, which takes into consideration both the loan’s upfront and ongoing mortgage insurance premiums.
A VA mortgage calculator is your best bet if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Cost of Living in California
California’s high cost of living impacts affordability, with higher home prices and expenses in many areas. As a whole, the state has a cost of living that is 42% above the U.S. national average. Properties in coastal areas might require a jumbo loan. For more affordable living, consider Stockton, Bakersfield, Chico, or another of the Golden State’s best affordable places in the U.S. A California mortgage calculator can estimate homebuying expenses.
There is a significant variation within California in terms of cost, as this cost-of-living index data shows. In the chart below, 100 equals the average cost of living in the U.S.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
Homebuyers in California are looking to do whatever they can to lower their mortgage payment. Here are some things you can do after purchasing a home to lower the payment:
• Drop private mortgage insurance (PMI) once you reach 20% home equity. (Reach out to your lender to do this.)
• Consider a mortgage recast. Make a lump-sum payment toward the principal that you owe and ask the lender to do a recast.
• Consider appealing your property taxes if you feel they are too high. Use caution, however: Inviting closer scrutiny of a property’s worth can sometimes result in a tax increase.
• Request that a lender modify your loan if you are facing financial hardship.
• Extend your loan term to lower monthly payments.
• Shop for cheaper homeowners insurance.
• If mortgage rates have dropped since you made your purchase, consider a mortgage refinance.
People who qualify as a first-time homebuyer in California may be able to utilize programs that aid with down payments or closing costs, making homeownership accessible to those with limited savings. Best of all, you could qualify as a newbie buyer if you haven’t owned a primary residence in the past three years. The California Housing Finance Agency provides below-market-interest-rate loans and down payment help for eligible low- and middle-income buyers.
Using a California mortgage calculator is a good first step in understanding the financial implications of homeownership. It helps you estimate monthly payments and total interest, and provides a clear picture of the overall cost of borrowing. Whether you’re a first-time homebuyer or considering refinancing, a mortgage calculator is an invaluable tool for planning and budgeting.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
How does my credit score affect my mortgage loan interest rate?
Higher scores generally mean lower mortgage rates, as lenders see less risk.
What is the difference between principal and interest in a mortgage payment?
Principal repays the loan; interest is the lender’s fee. An amortization schedule details how much of each payment goes to each.
What is a recommended down payment for a mortgage?
A 20% down payment avoids PMI and secures better rates, but many buyers, especially first-timers, put down less. Explore assistance programs if needed.
Should I choose a 30-year or 15-year mortgage term?
A 30-year term has lower monthly payments but higher overall interest. A 15-year term has higher monthly payments but saves on interest. Choose the shortest affordable term; 30-year is most popular.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
