Buying a Home in California: What You Need to Know
If you're considering buying a home in California, understanding the true cost of homeownership is essential. Beyond your mortgage payment, California homeowners face property taxes, insurance costs, and closing fees that vary significantly from the national average. This calculator uses California-specific data to give you accurate monthly payment estimates.
California Property Taxes
California has an effective property tax rate of 0.7%, ranking #32 out of 50 states (where #1 is the highest). On a median-priced home of $833,000, you'd pay approximately $5,831 per year in property taxes, or about $486/month.
California's property tax rate is near the middle nationally. Property tax rates can vary by county, so check with your local tax assessor for exact rates in your area.
California Homeowners Insurance
The average annual homeowners insurance premium in California is $1,641 for $300,000 in dwelling coverage, or about $137/month.
California's insurance costs are moderate compared to national averages. You may be able to lower your premium by increasing your deductible, bundling with auto insurance, or installing security systems.
California Closing Costs
Closing costs in California average 0.74% of the home's purchase price. On a $833,000 home, that's approximately $6,164. Closing costs typically include:
- Loan origination fees
- Appraisal and inspection fees
- Title insurance and search
- Recording fees
- Prepaid property taxes and insurance
California Housing Market
The median home price in California is $833,000. This is significantly above the national median of approximately $410,000, making California one of the more expensive states for homebuyers. However, strong job markets and quality of life often justify the premium.
More California Mortgage Tools
Use these additional calculators to plan your California home purchase: