True Cost
How much does a $2M Bay Area home really cost per month?
The mortgage payment is the headline number, but it's less than 70% of the true monthly cost. Here's every line, using the same math behind our True Cost and Rent vs Buy calculators.
Educational estimate only. Property tax, insurance, HOA, and maintenance vary by property — always verify the actual numbers for a specific listing.
The breakdown
$14,201/month — with 20% down and no PMI
$2,000,000 home price, $400,000 down (20%), $1,600,000 loan at 6.25% on a 30-year fixed.
| Cost line | Monthly |
|---|---|
| Principal & interest ($1.6M loan, 6.25%, 30yr) | $9,851 |
| Property tax (1.25%/yr) | $2,083 |
| Homeowners insurance ($2,400/yr) | $200 |
| Maintenance reserve (1%/yr) | $1,667 |
| HOA (assumed, townhome/condo) | $400 |
| True monthly cost | $14,201 |
Cash to close (down payment + ~2.5% closing costs) runs about $450,000 on this scenario. A detached single-family home would typically have $0 HOA — this figure assumes a townhome or condo-adjacent HOA; check the actual figure for any specific listing.
Is it worth it vs. renting?
At $6,000/mo rent, renting and investing stays ahead through year 20
Assuming a $6,000/mo starting rent (growing 3%/yr) and a 6%/yr return on the invested down payment plus the monthly gap between owning and renting.
| Year | Buy (net worth) | Rent + invest (net worth) | Difference |
|---|---|---|---|
| Year 5 | $793,912 | $1,171,838 | -$377,926 |
| Year 10 | $1,435,056 | $2,087,533 | -$652,477 |
| Year 15 | $2,236,810 | $3,254,025 | -$1,017,214 |
| Year 20 | $3,241,910 | $4,746,054 | -$1,504,145 |
What the mortgage payment alone hides
Non-mortgage costs are about 30% of this monthly number
Property tax, insurance, maintenance, and HOA add up to roughly $4,350/month here — on top of the $9,851 P&I payment most rate quotes advertise.
A Mello-Roos CFD would add more
Newer construction with a Mello-Roos special tax typically runs 1.5–1.7%/yr instead of the 1.25% base rate used here — that alone can add several hundred dollars a month.
HOA varies enormously
A detached home often has $0 HOA; a full-amenity condo or townhome community can run well past $400/mo. Always use the actual HOA for a specific listing.
Next step
Run your actual listing's numbers
Real HOA, Mello-Roos, and tax figures change this quickly. Enter the specific property's numbers on True Cost, then compare it against renting.