According to one recent study, the median mortgage payment in California is about $2,282 per month. Averages can be heavily skewed by the highest and lowest mortgage rates in the state. The median, on the other hand, provides a better sense of realistic mortgage payments.
Why might the average mortgage payment in California mislead you? California is known for some of the most expensive real estate in the nation. However, California residents can still access affordable housing that won’t reflect these averages.
So, how can you get a sense of how much you’ll realistically pay for your California mortgage?
Read on to find out more about what to expect from mortgage rates in California.
What Impacts Mortgage Payments in California
It’s important that you look beyond the price of a home and estimate what your monthly mortgage payment will be if you purchase it. Naturally, a more expensive home will come with a higher mortgage payment per month.
This is why California’s major cities contribute to an average mortgage payment in California that can scare off new buyers. The housing market is much more expensive in places like San Francisco.
To estimate your monthly mortgage payments, you can also factor in:
- your downpayment: a higher down payment will lower your monthly mortgage payments, as you have less to pay off over time
- your mortgage rate: a mortgage rate refers to the interest you agree to pay on your loan, and a lower mortgage rate will lead to lower mortgage payments
- a fixed-rate versus adjustable loan: adjustable loans may lead to higher monthly payments, as mortgage rates can fluctuate in both directions when they’re adjustable
Make sure that you talk at length with potential mortgage lenders in California. Get estimates to understand what your mortgage payments will look like over time.
Can You Access Special Low-Interest Mortgages?
Some individuals in California may qualify for mortgages that come with specific perks, such as a low mortgage rate. For example, California offers low-interest mortgages to teachers who want to buy a home. Have a look at some of the options for homebuyers who teach.
Similarly, California makes it easy for veterans to buy a home regardless of credit scores and down payments. California residents who are first-time homebuyers are, of course, qualified for FHA loans that operate in a similar manner. While these loans may not guarantee a lower interest rate, they do make homebuying available to more California residents.
Don’t Be Scared Off by the Average Mortgage Payment in California
Looking at the average mortgage payment in California can be intimidating. The good news is that that high number is skewed by high-price real estate markets in California’s biggest cities. There are plenty of ways that California residents can secure a mortgage that has payments they can afford.
Are you looking for more ways to learn about homeownership? Take a look at our home and garden section to find out about everything from interior design to regular maintenance.
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