Homeowners in California have several ways to convert their home equity into cash. One common…
Average Monthly Mortgage Payment in California, in 2017
Summary: Based on the statewide median home price and current mortgage rates, the average mortgage payment in California will be approximately $2,542 at the start of 2017. But there are many variables that can affect monthly payments. Please contact us if you would like a more precise estimate on your loan.
Note: There’s a 2018 update to this article
Mortgage rates have been on the rise lately, with a significant uptick over the last few weeks. Home prices have been trending upward as well. As a result, the average mortgage payment in California will be higher at the start of 2017 than a year ago.
There are no official sources for average monthly mortgage payment data. But we can get pretty close by analyzing current home prices across the state, along with the average mortgage rate data provided by Freddie Mac. By plugging these numbers into a standard amortization calculator, we can gain some insight into the average monthly mortgage payment in California, going into 2017.
Average Monthly Mortgage Payment in California for 2017
According to the real estate information company Zillow, the median home price for the state of California rose to $479,600 at the end of 2016. That’s a 6.9% increase over the same time a year earlier, which means average mortgage payments will be higher as well.
According to the latest weekly survey conducted by Freddie Mac, the average rate for a 30-year fixed home loan rose to 4.16% during the week ending on December 16, 2016. That’s slightly higher than the same time last year, but significantly higher than where we were just a few months ago. This too will lead to higher average mortgage payments for California homeowners.
Note: There are other types of home loans available, besides the 30-year fixed-rate mortgage. But it is by far the most popular option among borrowers. So we’ll use that particular product to calculate our average.
Property taxes are typically added into monthly mortgage payments, so we’ll include them here as well. Statewide, Californians pay an average of around $2,500 per year in property taxes, according to multiple sources. Granted, the tax rate can vary greatly from one county to the next, but we’re just aiming for an average mortgage payment here. So we’ll use $2,500.
Here’s how the monthly payments break down:
- Mortgage amount: $479,600
- Loan term: 30 years
- Interest rate: 4.16%
- Annual property taxes: $2,500
- Monthly payment (principal and interest only): $2,334
- Monthly payment (with property taxes): $2,542
Huge disclaimer: There are many variables here, and some have been left out for the sake of simplicity. For instance, we’ve used the median home price for the state as the base loan amount, without accounting for down payments. Home insurance costs have also been omitted for simplicity. Actual payments will vary based on the size of the loan, the mortgage rate, discount points, and other factors.
Related: Average closing costs for buyers
The point here is to offer some basic insight into the average monthly mortgage payment in California. More importantly, this article shows how you might estimate your own monthly payments, and what factors will influence them.
Get an Estimate on Your Home Loan
Are you in the market for a mortgage loan? If so, we can give you a specific quote based on your financial situation and the type of loan you need. We can also estimate how much your monthly payments will be.
Bridgepoint Funding has been serving borrowers in California for more than 15 years. We offer a variety of mortgage loan products with flexible criteria and competitive rates. Please contact us today for a rate quote, or with any financing questions you have.
