Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in California
California is the most populous state in the US and has one of the most competitive housing markets in the country. With an average home price of $793,000 — more than double the national median — homeownership requires careful financial planning. The state spans wildly different markets, from the Bay Area and Los Angeles (where median prices often exceed $1.2M) to more affordable inland regions like the Central Valley and parts of the Inland Empire.
Despite high prices, California's property tax system is relatively buyer-friendly. Proposition 13, passed in 1978, limits assessed value increases to 2% per year until a property changes hands. This means long-time homeowners often pay far less in property taxes than their neighbors who purchased recently.
Key Housing Facts for California
Average home price: $793,000
Average effective property tax rate: 0.71%
Average homeowners insurance: $1,500/year
Median household income: ~$84,000
Most competitive markets: San Francisco Bay Area, Los Angeles, San Diego
More affordable markets: Fresno, Bakersfield, Stockton, Riverside
California First-Time Homebuyer Programs
The California Housing Finance Agency (CalHFA) administers several programs to help first-time buyers:
CalHFA Conventional Loan: Below-market fixed interest rates for first-time buyers who meet income limits.
MyHome Assistance Program: Up to 3.5% of purchase price as a deferred-payment junior loan for down payment and closing costs.
CalHFA FHA Loan: FHA-insured first mortgage paired with down payment assistance.
Dream For All Program: Shared appreciation loan providing up to 20% of purchase price; the state shares in the home's appreciation when sold.
School Teacher and Employee Assistance Program (School Program): 3.5% junior loan for K-12 teachers and staff.
Property Tax Rates by Major California County
County
Effective Tax Rate
Median Home Value
Annual Tax (Median)
Los Angeles
0.72%
$790,000
$5,688
San Diego
0.73%
$870,000
$6,351
Santa Clara
0.67%
$1,400,000
$9,380
San Francisco
0.56%
$1,300,000
$7,280
Orange
0.65%
$1,000,000
$6,500
Alameda
0.77%
$870,000
$6,699
Riverside
0.91%
$540,000
$4,914
Fresno
0.85%
$330,000
$2,805
Average Home Prices by Major City
City
Median Home Price
San Jose
$1,400,000
San Francisco
$1,300,000
Los Angeles
$870,000
San Diego
$870,000
Oakland
$780,000
Sacramento
$480,000
Riverside
$540,000
Fresno
$330,000
Bakersfield
$310,000
Frequently Asked Questions
California's average effective property tax rate is approximately 0.71%, which is below the national average. Thanks to Proposition 13, assessed values are capped at a 2% annual increase until the property is sold. On a $793,000 home, you'd pay roughly $5,630 per year in property taxes.
The California Housing Finance Agency (CalHFA) offers down payment assistance, below-market interest rates, and first-time homebuyer programs. The MyHome Assistance Program provides up to 3.5% of the purchase price as a deferred-payment junior loan. Income and purchase price limits apply and vary by county.
Conventional loans typically require 3–20% down. On California's average home price of $793,000, a 20% down payment is $158,600. FHA loans require 3.5% down ($27,755) but carry mortgage insurance. CalHFA programs can reduce out-of-pocket down payment costs for qualifying buyers.
Yes, California is a community property state. Property and debts acquired during marriage are generally considered jointly owned. This affects mortgage qualification because both spouses' debts may be counted even if only one is on the loan, though income can also be combined.
Closing costs in California typically run 1–3% of the loan amount. On a $793,000 home, expect $8,000–$24,000 in costs including title insurance, escrow fees, loan origination fees, and transfer taxes. California has no state-level mortgage recording tax, but counties may charge transfer taxes.