Mortgage Payments
California Mortgage Calculator with Down Payment Assistance
Are you trying to find a California mortgage calculator with down payment assistance? You may have found a few calculators online but didn’t know how to make the most out of them. Get to know our CA mortgage calculator below.
Consider how it may help you understand if now is a good time to buy a home.
Our CA Mortgage Calculator for What You Can Afford
Figuring your monthly mortgage payment can be intimidating. But it doesn’t have to be. The process can be simplified. One of the benefits of this CA mortgage calculator is the ability to educate yourself before getting prequalified. Enter your information and get a purchase price.
When you talk to a loan officer, many will prequalify buyers for the largest loan amount they can afford. However, this may not be in a buyer’s best interest. Mortgage calculators can help you figure what type of payment is more to your liking. As such, doing your own research can equip you with the information you need to move forward with confidence.
Down Payment Required to Buy a Home in California
The minimum down payment required for a California home varies depending on which loan program is chosen.
- Conventional loan down payment (traditional with no mortgage insurance) = 20%
- Conventional loan minimum down payment amount (traditional minimum down payment) = 5%
- Conventional loan for California first time home buyers (minimum down payment) = 3%
- FHA loan minimum down payment = 3.5%
- VA loan minimum down payment = 0%
- USDA loan minimum down payment = 0%
Down payment assistance is available for these loan types.
Conventional Loan Calculator for California
Conventional loans usually require a 5% down payment. Although there are flexible conventional loans programs designed for California first time home buyers that only require a 3% down payment.
California homes purchased with a conventional loan require private mortgage insurance if the down payment is less than 20% of the purchase price. Typically, private mortgage insurance ranges between .55% and 2% of the starting loan, depending on variables such as credit score and down payment amount. Conventional loan programs are designed specifically for first time home buyers, and come with reduced mortgage insurance premiums so your monthly payments are more affordable.
FHA Loan Calculator California
California FHA loan calculators should take into consideration that the minimum down payment requirement is 3.5%. They should also account for mortgage insurance. Upfront premiums for FHA loans are 1.75%, and annual premiums are .85%. Our California mortgage calculator uses that rate for calculation.
VA Loan Calculator California
VA loans are typically zero down loans. They do not require mortgage insurance. However, VA does charge a funding fee.
USDA Loan Calculator in California
USDA loans are a popular option to buy a home in a rural part of California. They do not require a down payment and the guarantee fee is low. Current USDA upfront guarantee fees are 1%, and the annual guarantee fee is .35%.
Why should you use a California Home Loan Calculator?
A proper CA calculator can provide buyers with the knowledge they need to determine if a house is worth buying. There are a plethora of costs that come with homeownership, such as real estate taxes, insurance costs, maintenance. To get an accurate estimate, you need a calculator that figures in these expenses.
Also be sure to confirm what current rates are available. Interest rates in California can change daily so contact us to confirm today’s rates.
What Does a California Mortgage Payment Calculation Consist Of?
Principal and Interest: Principal is part of your monthly mortgage payment that pays down the balance of the loan. Interest is the cost of borrowing money paid to the lender.
Homeowner’s Insurance: When you buy your home, part of your monthly payment will include payments to collect the cost of the homeowner’s insurance (also known as hazard insurance) policy. Homeowner’s insurance covers damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people. In California, an annual policy usually runs between $600 and $1000. Our California mortgage calculator uses the average of that range for the calculation.
Property Taxes: As a home owner, you will pay property taxes on your home. In California, it is usually paid through the county assessor where the property is located. Property taxes are collected twice a year (October and March). When you make your monthly mortgage payment, it will include the estimated monthly amount needed to pay your taxes when they are due. For example, if your half-year tax payment is $600 then your monthly mortgage payments should be $100. The exact tax rate on your home depends on where it is located.
The tax rate for each home is comprised of the state, county, municipal, school, and special district rates. The average overall tax rate on homes in California is typically .74% of market value. This is an estimated amount because property taxes are levied based on assessed value. Our California mortgage calculator uses the average of the range stated above for the calculation.
Mortgage Insurance: Depending on which type of loan you choose and how much your down payment will be, you may have to pay monthly mortgage insurance on your loan. Private mortgage insurance (PMI), is a type of insurance that protects the lender if the borrower stops making payments on the loan and the home ends up in foreclosure. Mortgage insurance is common on conventional loans with less than a 20% down payment and on FHA loans. The current fha mortgage insurance rate is .85% for the annual premium. Our California mortgage calculator uses that rate for our calculation.
