What is the average mortgage payment in California?

California is home to some of the most expensive housing markets in the country and the average mortgage payment is more than double the national average. However, California is also a massive state that contains a wide range of housing markets and in some of these markets the average monthly payment is almost half the national average.

If you want to buy a home in California, let’s take a dive into the current Golden State housing market to give you an idea of what kind of monthly mortgage payment you can expect.

Overview of California’s housing market

As of June 2025, the median sale price for a home in California is $866,000, more than double the national average of $411,000. Like most housing markets across the country, the price of homes in California has risen sharply over the last decade. Let’s take a look at how the median sales price of homes in the state has changed in just the last 5 years.

Digging deeper, you’ll find the cost of a home in California can vary considerably depending on where in the state you’re looking to buy. For example, take a look at the median home sales price in the following markets as of June 2025.

Of course, the purchase price will also depend on the type of home you buy. According to a July 2025 report from the Legislative Analyst’s Office, the California legislature’s nonpartisan fiscal and policy advisor, the cost of a mid-tier home in California is more than twice as much as a typical mid-tier U.S. home. Not only that, but a bottom-tier California home is 30% more expensive than the average mid-tier home in the rest of the country.

Average mortgage payment in California

The average monthly mortgage payment is currently $3,533, the second highest in the U.S. behind the District of Columbia. The national average monthly payment is $2,010.

According to the LAO report, average monthly payment for a mid-tier California home is over $5,900 a month as of June 2025, three times the national average and an 82% increase since January 2020. Average monthly payments on a bottom-tier home in California are $3,600, still well above the national average and an 87% increase since January 2020.

There was a dramatic increase in the monthly payment for a new home purchased between 2020 and 2022 that has maintained since then. This is due to the combined effect of rising home prices and increases in mortgage rates.

Currently, 81% of California homeowners have a mortgage rate under 5%, while new buyers face a rate of around 7%. If an existing owner sells their home with a low-rate mortgage, they’ll be buying a new one with a higher rate, which could cost hundreds of thousands more over the life of the loan. As a result, many owners are choosing not to sell, which has significantly limited supply on the California housing market.

Average mortgage payment by region

Within California, your typical monthly mortgage payment can vary drastically depending on the local market. Here are some different markets from all over the Golden State to illustrate how much the average mortgage payment can vary.

In general, housing costs in California are typically highest in coastal areas. It’s in these markets where the difference between the cost of renting and buying is also much higher than in other areas. Since 2020, housing costs across the state have grown, but this growth has been slower in the northern part of the state.

California mortgage payments vs. other states

Let’s take a look at how the average mortgage payment in California compares to other states. Here are the 10 states with the highest average mortgage payment:

These are the states with the lowest monthly mortgage payment:

Factors affecting mortgage payments in California

Your monthly mortgage payment is determined by the following factors:

• Home price
• Loan term
• Down payment
• Mortgage rates
• Property taxes
• Homeowners insurance

You can use our mortgage calculator to see how changes in each of these factors affect what you owe each month.

Home prices

When you buy a home in a more expensive market, you’ll likely need a larger loan. The more you borrow, the larger your monthly payment will be. The median sale price of a home in California is currently $866,000. For context, the national median sale price is $411,000.

Let’s say you want to buy an $850,000 home in northern California with a 10% down payment on a 30-year fixed-rate mortgage and an interest rate of 7%. Your monthly mortgage payment would be $5,941. For comparison, if you bought a $410,000 home in another state California, with the same mortgage terms and 10% down payment, your mortgage payment would be $3,049. 

Housing prices in California have been driven up so high because of short supply and population shifts. For example, many residents who had left during the height of the COVID pandemic began returning to California, putting pressure on housing.

Loan term

A longer loan term can help reduce your monthly mortgage payment because you have more time to pay off the loan. Since you’re making more payments over a longer period of time, each installment can be smaller. Shorter loan terms mean higher monthly payments because you’ll be making fewer payments overall.

It’s worth noting that longer-term terms do often come with higher interest rates, which means you’ll often pay overall. Shorter loan terms come with lower interest rates, which saves you money on your mortgage.

Down payment

When you make a larger down payment, it reduces the amount you have to borrow, so each monthly installment can be smaller. When you make a down payment of less than 20% on a conventional loan, you’ll have to pay extra for private mortgage insurance, which adds to your monthly payment.

According to the National Association of Realtors, the current median down payment among buyers is 15%.

Mortgage rates

The interest rate on your mortgage will be based on a variety of factors including:

• Your credit score
• Current market rates
• Your down payment
• Loan amount
• Loan term
• Loan type
• Home location

Your credit score is based on your financial history, and you get to decide how much of a down payment to make, but current market rates are out of your control. Here are average mortgage rates as of July 31, 2025:

• 30-year fixed-rate mortgage: 6.72%
• 15-year fixed-rate mortgage: 5.85%

Property taxes and insurance

The amount you pay in property taxes is determined by the assessed value of the home and the local tax rate, which is set by the state and local government. California has a unique structure where the base tax rate is 1%, but the effective tax rate, the amount you pay after exemptions, can be lower. According to the Tax Foundation, the average effective tax rate in California is 0.70%.

So, if the assessed value of your house is $700,000 and the effective property tax rate in your area is 0.70%, then your tax bill would be $5,390.

Another factor that impacts your monthly payment is homeowners insurance. The cost of your policy will depend on several factors including:

• Home location
• Home size
• Condition of the home
• Your deductible
• Your level of coverage
• Cost of materials
• Whether or not the home was financed
• Past claims
• Additional risks

Your home location has a big influence on the cost of homeowners insurance, especially if it’s in an area that’s at high risk of a weather or climate disaster. In California, many insurers add on a surcharge if the home is at high risk for wildfires. According to the California Department of Insurance, these surcharges can range from 15% to 30%.

Mortgage resources for California homebuyers

Buying a home in California can quickly get expensive, but the good news is there are assistance programs designed to help first-time buyers become homeowners. Here are some home buying assistance programs that are offered in the Golden State:

• CalHFA FHA Program: A conventional first mortgage that you pair with a MyHome Assistance junior loan to cover up-front costs.
• CalPLUS FHA Loan Program: A conventional first mortgage that you pair with the CalHFA Zero Interest Program to cover up-front costs.
• CalHFA VA Loan Program: A first mortgage backed by the VA for servicemembers, veterans, and their surviving spouses that you pair with a MyHome Assistance junior loan to cover up-front costs.
• CalHFA USDA Loan Program: A first mortgage backed by the Department of Agriculture for buyers in certain rural areas that you pair with a MyHome Assistance junior loan to cover up-front costs.
• MyHome Assistance Program: Offers a deferred-payment junior loan of 3% - 3.5% of the purchase price to help you cover a down payment and closing costs.
• San Diego Housing Commission First-Time Homebuyer Program: Offers a deferred-payment junior loan of up to 19% of the purchase price and closing cost grant assistance of up to $10,000.

The bottom line: Consider your monthly mortgage cost as a California homeowner

The average home in California costs twice as much as the national average. That means you’ll have to anticipate that your down payment, closing costs, property taxes, and monthly mortgage payment will be that much higher. There are also parts of California where homeowners insurance coverage costs are considerably higher due to increased weather risk. Buying a home in the Golden State is still an attainable goal if you prepare for these added costs and know what to expect. There are also down payment assistance programs offered by the state to first-time home buyers.