What Is The Average Mortgage Payment in California?

When thinking about homeownership in California, one of the biggest questions buyers have is: How much will my monthly mortgage payment be? With home prices among the highest in the nation, understanding the average mortgage payment in California is key to budgeting for your dream home. In this guide, we’ll break down everything you need to know about mortgage payments in the Golden State, how they’re calculated, and what you can expect to pay based on different loan scenarios.

Average Mortgage Payment in California

The average mortgage payment in California varies significantly based on factors like location, interest rates, down payment size, and loan term. However, as of 2025, the estimated average mortgage payment in California is around $3,500–$4,000 per month for a median-priced home, assuming a 30-year fixed-rate mortgage and a 20% down payment.

How To Calculate Your Average Monthly Mortgage Payment in California

Your mortgage payment consists of several components, including principal, interest, taxes, and insurance (often abbreviated as PITI). 

To calculate your estimated payment:

1. Determine your loan amount (home price minus down payment).
2. Choose your loan term (e.g., 15, 20, or 30 years).
3. Check current interest rates.
4. Estimate property taxes (around 1.1% of the home’s value in California).
5. Factor in homeowners insurance and, if applicable, private mortgage insurance (PMI).

Costs Included in a Mortgage Payment

Your monthly mortgage payment isn’t just about paying back the loan—it includes several other expenses:

• Principal: The amount you borrowed.
• Interest: The cost of borrowing the money.
• Property Taxes: Typically 1.1% of the home’s value, paid in installments.
• Homeowners Insurance: Required by lenders to protect against damage.
• PMI (if applicable): If you put down less than 20%, you’ll likely pay PMI.

Average Mortgage Payment Scenarios

To give you a clearer picture, let’s look at different mortgage scenarios based on common loan terms and interest rates:

Average 30-Year Fixed Monthly Mortgage Payment in California

• Home Price: $800,000
• Down Payment: 20% ($160,000)
• Loan Amount: $640,000
• Interest Rate: 6.5%
• Estimated Monthly Payment: $4,045 (including taxes & insurance)

Average 20-Year Fixed Monthly Mortgage Payment in California

• Home Price: $800,000
• Down Payment: 20% ($160,000)
• Loan Amount: $640,000
• Interest Rate: 6.0%
• Estimated Monthly Payment: $5,120

Average 15-Year Fixed Monthly Mortgage Payment in California

• Home Price: $800,000
• Down Payment: 20% ($160,000)
• Loan Amount: $640,000
• Interest Rate: 5.75%
• Estimated Monthly Payment: $6,600

‍Understanding The Differences in Monthly Payments

• A 30-year loan has lower monthly payments but more interest paid over time.
• A 15-year loan has higher monthly payments but saves thousands in interest.
• Your down payment impacts your loan amount and monthly cost.
• Interest rates fluctuate and directly affect your payment.

National Data on Average Monthly Mortgage Payments

For comparison, the national average mortgage payment is around $2,200 per month, which is significantly lower than California’s average due to the state’s high home prices.

California Mortgage Statistics

• Median Home Price (2025): $800,000
• Statewide Average Mortgage Payment: $3,500 - $4,000
• Typical Down Payment: 15-20%
• Average Property Tax Rate: 1.1%

Averages Change From City to City

Mortgage payments vary widely across California:

• Los Angeles: ~$4,200/month
• San Francisco: ~$5,500/month
• San Diego: ~$4,000/month
• Sacramento: ~$3,000/month
• Fresno: ~$2,200/month

The Bottom Line on the Average Mortgage Payment in California

If you’re considering buying a home in California, understanding mortgage payments is crucial. Your actual monthly payment will depend on home price, loan term, interest rate, property taxes, and insurance costs. To get the most accurate estimate, consider using a mortgage calculator or consulting with a mortgage expert.

FAQs

1. How much is the average mortgage monthly payment?

The average mortgage payment in California is approximately $3,500 - $4,000 per month, depending on the home price and loan terms.

2. What’s included in my monthly mortgage payment?

Your mortgage payment includes principal, interest, property taxes, homeowners insurance, and possibly private mortgage insurance (PMI) if your down payment is below 20%.

3. Are there ways to lower my monthly mortgage payment?

Yes! You can lower your payment by:

• Making a larger down payment
• Choosing a longer loan term
• Refinancing to a lower interest rate
• Shopping around for the best lender rates

4. Are mortgage interest payments tax-deductible in California?

Yes, mortgage interest is tax-deductible, subject to IRS limits. Consult a tax professional for details.

5. How much is the average monthly mortgage rate in California?

Mortgage rates vary, but as of 2025, the average rate for a 30-year fixed loan is around 6.5% and for a 15-year fixed loan is about 5.75%.

Ready to explore mortgage options? Connect Equity Capital Home Loans expert today and start your journey to homeownership!