California 15 vs 30 Year Mortgage
Compare 15-year and 30-year mortgage options for California homes. See the monthly payment difference and total interest savings on the $785K median home.
Why This Matters in California
In California, where the median home is $785K, the 15 vs 30-year decision has big dollar implications. A 30-year loan at 6.5% on $707K costs $4,466/month in P&I, while a 15-year at 5.75% costs $5,867/month. That's a $1,401/month difference.
California's moderate 0.73% property tax rate helps — your total PITI stays manageable even with the higher 15-year payment, making the interest savings more achievable.
15-Year vs. 30-Year Mortgage in California
The choice between a 15-year and 30-year mortgage in California comes down to monthly cash flow versus total cost. On the $785K median home with 10% down, a 30-year mortgage at 6.5% gives you a total PITI of $5,126/mo. A 15-year mortgage at 6.0% (15-year rates are typically 0.5-0.75% lower) pushes that to $6,623/mo — about $1,497 more per month. But you save approximately $535K in total interest and own the home free and clear in half the time.
In California's higher-cost market, the monthly difference between 15 and 30 years is substantial: $1,497 per month. That is a significant commitment for many California households, especially first-time buyers already stretching to afford the down payment and closing costs. The 30-year mortgage often makes more practical sense here, preserving monthly flexibility while still building equity. If your income grows over time, you can always make extra principal payments on a 30-year loan to capture some of the interest savings without being locked into the higher payment.
Whichever term you choose, the CalHFA Dream For All program (up to 20% shared appreciation loan) can ease the upfront burden. Use the full 15 vs 30 year mortgage comparison tool to model both scenarios with your actual numbers — including California-specific property taxes and insurance — and see the month-by-month difference in equity growth, interest paid, and total cost.