California Mortgage Calculator
How is a mortgage/home loan payment calculated?
A California Mortgage payment, of course, always includes the Principal and Interest of the loan payment. However, if you put less than 20% down most mortgages require you to also impound/escrow the homeowner's insurance, property taxes, and flood insurance. This means it must be included as part of your mortgage payment every month.
California Property TAxes
Property taxes in California can be difficult to estimate properly due to complex laws in place that cause property taxes to be significantly different depending on where you buy. Unless there is a special exemption for you, like a Disabled Veteran, the base tax rate for all California properties is 1%. On top of that there are a variety of taxes for school bonds, road improvements, and other things that communities can add. Please see my page on California Property Taxes for more detailed information.
It is common for most people to use 1.25% of the purchase price as an estimate but we see property taxes from 1.1% to 1.8%.
California Home Insurance
Homeowner's insurance in California takes multiple forms and types. Fire insurance, earthquake insurance, and flood insurance are among the most common types of insurance. Fire insurance is always required for any home that has a mortgage, and depending on the property itself earthquake and flood insurance may be required as well. Please see my page on California Homeowner's Insurance for more detailed information.
It is common for most people to use .35% of the purchase price as an estimate but we see homeowner's insurance rates from .15% to .45%.
In some extreme cases in woodland areas and mountains of California the fire insurance can be many thousands of dollars due to the risk of fire.
Interest rates are among the most misunderstood part of the mortgage/home loan process. Interest rates vary dramatically from person to person. The advertised rate you see online and in the news is rarely the interest rate that you will be quoted from any lender. Among the things that influence the rate are loan type, down payment, and credit scores. The third and more mysterious component is the cost associated with the rate. Some lenders will quote a lower rate with a higher fee so that people feel like they are getting a better deal, but paying for a lower rate may not always make sense. This is why working with a loan officer that you trust is IMPORTANT! That being said here are some generally true things about interest rates.
Lower down payment = Higher Rate
Lower Credit Scores = Higher Rate
Government Insured Loans = Lower Interest Rates (FHA,VA, USDA)
How to Calculate a Payment
Enter all of the information you believe will be appropriate for your loan scenario. Keep in mind some, some pieces are nearly impossible to predict without your loan officer. For example, conventional mortgage insurance is custom quoted to every single loan scenario from multiple providers who are constantly changing their insurance rates. So if you want a more accurate payment quote you'll want to reach out to us directly.
Minimum Credit Score: 580
Best for people with below average credit or high debt-to-income ratios.
Minimum Credit Score: 580
A home loan for those whom have served our nation.
Minimum Credit Score: 620
A home loan for moderate to low-income rural households.