California Mortgage Payment Calculator
🏛️ California Tax & Cost Considerations
As a San Francisco resident, your mortgage vs. investment decision should consider the city's unique market dynamics, local costs, and specific financial factors that differ from state averages.
💡 Key Tax Highlights:
- Property taxes at 1.18% are within typical ranges
- High property values may limit mortgage interest deduction due to $750k cap
🎯 Payment Considerations:
- High cash buyer competition (45%) may affect market timing
- Fast-moving market (avg 25 days) may limit negotiating power
- High parking costs ($350/month) add to total housing expenses
- Earthquake insurance adds $1200/year to housing costs
- High tech employment may involve RSU compensation affecting mortgage qualification
- Rent control laws affect 170,000+ units, impacting investment property returns
- Proposition 13 creates significant property tax variations by purchase date
- Seismic retrofit requirements may apply to older properties
🏙️ San Francisco Payment Factors
Calculate your monthly mortgage payment in San Francisco with accurate local costs including property taxes, insurance rates, and fees that vary significantly from national averages.
💰 Payment Factors:
- Property taxes (1.18%) are within typical ranges
- Typical HOA fees of $650/month add to total housing costs
- High median home price ($1,400,000) may require jumbo loan rates
🏠 Local Costs:
- Earthquake insurance: $1200/year
- Parking costs: $350/month
- Earthquake insurance typically $1,200+/year
- Property tax benefits locked in by Proposition 13
- Transfer taxes vary by property value
- Many properties require seismic retrofitting
- Fast-moving market may require quick financing decisions
- High cash buyer competition may require stronger financing
Loan Details
California Costs
Payment Breakdown
Understanding Mortgage Rates: APR vs Rate vs Points
🏷️ Interest Rate
The interest rate is the annual cost of borrowing money, expressed as a percentage. This is what you see advertised and what's used to calculate your monthly principal and interest payment.
📊 APR (Annual Percentage Rate)
APR includes the interest rate PLUS additional costs like origination fees, discount points, and some closing costs. It gives you the "true cost" of the loan.
💰 Discount Points
Points are upfront fees you pay to "buy down" your interest rate. Each point typically costs 1% of your loan amount and reduces your rate by ~0.25%.
💡 Should You Buy Points? The Math Behind the Decision
✅ Points Usually Make Sense When:
- You're staying long-term: Need 5-8+ years to break even
- You have extra cash: Better than investing in low-yield accounts
- You want payment certainty: Locked-in lower payment for life
- Tax benefits: Points may be tax-deductible (consult tax advisor)
⚠️ Common Gotchas & When to Avoid:
- Short-term ownership: You'll lose money if you move/refinance early
- Opportunity cost: That cash might earn more in investments (especially in bull markets)
- Cash flow: Don't deplete your emergency fund for points
- Rate environment: If rates are falling, you might refinance soon anyway
- Seller concessions: Sometimes sellers will pay points instead of lowering price
🧮 Quick Break-Even Formula:
Example: $3,000 in points saves $42/month → 71 months (6 years) to break even