Down Payment

Your down payment is the amount you contribute toward the purchase of your home. While putting 20% down can help eliminate mortgage insurance on many conventional loans, qualified buyers may have options requiring as little as 3%–3.5% down, or even 0% with certain loan programs.

A larger down payment reduces the amount you need to borrow and can lower your monthly mortgage payment. The right amount depends on your financial goals, available savings, and loan options.

Loan Term

Your loan term is the length of time you have to repay your mortgage. Common options include 15-year and 30-year loans. A shorter term generally means higher monthly payments but less interest paid over the life of the loan. A longer term typically offers lower monthly payments, giving you more flexibility in your budget.

Loan Type

The type of mortgage you choose can affect your interest rate, monthly payment, and long-term costs.

A fixed-rate mortgage maintains the same interest rate throughout the loan term, providing predictable principal and interest payments.

An adjustable-rate mortgage (ARM) typically begins with a fixed rate for a specified period before adjusting according to market conditions and the loan's terms. For example, a 5/1 ARM has a fixed rate for the first five years, followed by potential adjustments annually. ARMs may offer lower initial rates, but future payments can increase or decrease.

The right choice depends on your financial goals and how long you plan to keep the home or loan.

Interest Rate

Your interest rate determines how much you pay to borrow money and directly affects your monthly mortgage payment. Actual rates vary based on market conditions, credit qualifications, loan program, down payment, and other factors.

The rate shown in this calculator is for estimation purposes only and does not represent a guaranteed rate or loan offer.

Property Tax Rate

Property taxes are an important part of your monthly housing expenses. In California, taxes are generally based on the property's assessed value, with additional local assessments or special taxes that may apply.

The calculator provides an estimate, but actual property taxes vary by location and property. You can adjust this amount under Advanced Options.

Home Insurance

Homeowners insurance helps protect your home and personal property against covered losses. Most mortgage lenders require this coverage to protect their investment.

Insurance costs vary based on the home's location, value, coverage, and other factors. You can adjust the estimated insurance expense under Advanced Options.

HOA Fees

Some homes and communities have homeowners association (HOA) fees that help cover the maintenance of shared areas, amenities, landscaping, and other community expenses.

These fees vary by property and are generally paid separately from your mortgage. Be sure to include any HOA fees when estimating your total monthly housing expenses.