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A mortgage calculator is a powerful tool for anyone considering purchasing a home. It helps potential homebuyers understand the financial implications of their decision by estimating monthly payments and total costs. Type in your home price, down payment amount, and a couple other figures, and you’ll quickly get a picture of costs. Whether you’re a first-time homebuyer or a seasoned investor, a few quick calculations can provide the insights you need.
Key Points
• Use a mortgage calculator to estimate monthly mortgage payments and overall costs of a mortgage.
• Type in different numbers to understand the impact of different down payment, loan terms, and interest rates on monthly payments.
• Down payment assistance programs can significantly reduce upfront costs, making homeownership more accessible, especially for first-time homebuyers in Sacramento.
• A 30-year mortgage term typically offers lower monthly payments but results in more interest paid over the life of the loan compared to a shorter term.
• Property taxes are often paid as part of the monthly home loan payment.
Sacramento, CA Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you have agreed to with the home seller. This figure may differ from the listing price and your initial offer.
• Down payment: The down payment is the amount you’ll pay upfront. Buyers typically put down from 3% to 20% of the purchase price, with the latter being the number you’ll need to hit to avoid paying for private mortgage insurance (PMI). A jumbo loan usually requires at least 10% down.
• Loan term: The loan term is the length of time you have to repay the home loan. A longer term offers lower monthly payments but results in more interest paid over the life of the loan.
• 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 the type of mortgage loan.
• Annual property tax: Property tax is levied by local governments on land and buildings and is expressed as a percentage of a property’s assessed value. In Sacramento county, the average effective property tax rate is 0.8%. To get the specific rate for your town, search by ZIP code.
• Total monthly payment: The total monthly payment includes the principal, interest, and property tax. Some lenders also include homeowners insurance. And you’ll pay PMI if your down payment is less than 20%.
• Homeowners association (HOA) fees: Homeowners association (HOA) fees may also be included.
• Total interest paid: The total interest paid is the amount of interest you will pay over the life of the home loan. This figure can be substantial. To minimize the total interest paid, consider strategies to lower your interest rate: Improve your credit score, negotiate with lenders, and explore different loan types.
How to Use the Sacramento, CA 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 how much of the home price you will pay upfront. A down payment calculator can show you what’s needed to reach the 20% payment necessary to avoid PMI.
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. For the specific percentage in your area, search online for the property’s town or ZIP code and “effective property tax rate.”
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator is a powerful tool for estimating your monthly mortgage payments and understanding the financial commitment involved in homeownership. It helps you get a feel for what monthly payments would be like on your dream home based on its price, and also helps you determine the best mix of down payment amount and loan term for your needs. You can run different scenarios, changing the loan term or down payment amount, until you see your sweet spot. This can be especially helpful if you are buying your first home and haven’t been through the mortgage process before.
Sacramento’s median sale price in mid-2025 was $485,000 — about $45,000 above the U.S. average, according to Redfin. Let’s use that home price to explore how you might decide whether you can afford a particular home based on its monthly payment amount as shown by the mortgage calculator. Lenders usually recommend that your monthly payment not exceed 28% of your gross income.
With a 20% down payment ($97,000), an interest rate of 7.00%, and a 30-year loan term, the monthly payment on the home loan, including property tax, would be $2,588. To afford this, you would need an annual income of around $115,000. This assumes you don’t have other significant debts.
If you want to use your annual income and debts to determine your ideal home price, try putting your numbers into a home affordability calculator for a rapid estimate. Or pull together your financial details and share them with a lender as part of the mortgage preapproval process. You’ll come away knowing if you would likely qualify for a loan and, if so, how much you might borrow.
Components of a Mortgage Payment
The main components of a mortgage payment are principal and interest. The principal is the amount you borrowed to purchase the home, while the interest is the cost of borrowing that money. Your monthly payment may also include property tax — after all, a lender will want to be sure the taxes are paid. Some monthly payments include HOA fees and homeowner’s insurance costs as well. And if you need to pay PMI, it will be included.
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.
Current mortgage rates by state.
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 Sacramento, CA
Sacramento’s cost of living is about 30% higher than the national average, but it still ranks as one of the best affordable places in the U.S. for young adults because it is on the more affordable side for California. The state as a whole has a cost-of-living index that’s about 45% above average.
A young adult thinking of moving to Sacramento could look into the average monthly expenses for one person to get a feel for costs. In Sacramento, a living wage for two adults working full time and raising two children is $48.65 per hour, according to MIT’s Living Wage Institute. As you think about purchasing a home in Sacramento, online calculators can help you determine how your housing costs fit into your larger household budget.
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.
Sacramento, CA First-Time Homebuyer Assistance Programs
If you’re buying your first home in Sacramento, there are several down payment assistance programs available to help you cover the initial costs. Some programs also provide a loan or grant to cover closing costs. To qualify, you typically must not have owned a primary residence within the past three years. The California Housing Finance Agency is the primary program provider, offering below-market-interest-rate loans and down payment help for eligible low- and middle-income buyers. Consult a guide to first-time home-buying programs in California for advice.
After you purchase a home in Sacramento, there are still ways to lower your monthly mortgage payment. Consider these options.
• Request that your lender drop PMI when you reach 20% equity. Remember that if your home value increases, you may reach 20% equity sooner than expected.
• Try a mortgage recast. This involves making a lump-sum payment toward the principal and asking the lender to recompute your payments according to the new, lower principal.
• If rates currently are lower than your initial mortgage, consider a full mortgage refinance.
• Property taxes are a significant part of your total monthly payment. If you believe your property tax is too high, you can have your property reassessed. Remember, though, that if you’ve made improvements this could backfire — you could wind up with a larger tax bill.
• If you face financial hardship, ask for a loan modification from your lender. One common modification is to extend the term of your loan.
• Shop around for a lower homeowners insurance rate. You can potentially lower your premium payments by opting for a higher deductible, bundling your homeowners and auto insurance policies together, or by making upgrades that significantly enhance your home’s security features or storm resistance capabilities.
The Takeaway
Using a mortgage calculator is an important step in the homebuying process. Put in just a few figures and it will quickly show you what your monthly payments might be. Play around with different down payment amounts and test different loan terms until you find a figure that works for you. A mortgage calculator will provide valuable insights to help you make informed financial decisions about financing your new home.
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.
The median monthly mortgage payment in Sacramento County in the first quarter of 2025 was $3,278, according to the National Association of Realtors®. But as a mortgage calculator shows, an average payment can fluctuate based on several factors, including the price of the home, the prevailing interest rate, and the term length of the loan.
Should I choose a 30-year or 15-year mortgage term?
A 30-year term offers lower monthly payments, making homeownership more accessible. A 15-year term could save you thousands of dollars in interest but will require a higher monthly payment. If you can make a 15-year or 20-year term work with your budget, go for it. But particularly if this is your first home purchase, don’t feel bad about locking in 30 years. It is, after all, the most popular mortgage term in the U.S.
How can I get a lower mortgage interest rate?
To get a lower mortgage interest rate, start by improving your credit score, as lenders often offer better rates to borrowers with scores over 700. Shop around for different lenders to compare their interest rate offers. Prepaying mortgage points, which are upfront fees paid to the lender, can also lower your interest rate. Look carefully at adjustable-rate vs. fixed-rate loan offers to determine whether going with an adjustable rate might provide a lower introductory rate without too much risk of rates rising later on.
What income do you need for an $800,000 mortgage with a 6.50% interest rate?
You’ll need an income of around $240,000 to $300,000 to afford an $800,000 mortgage with a 6.50% interest rate. The exact amount will depend on whether you have any other debts besides the mortgage. When in doubt, a home affordability calculator is a good tool to use. Work backward from your income, factoring in your debts, to find a home price you can afford.
SoFi Mortgages
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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 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.
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.
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.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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