Money
The true cost of buying your first home
It's not just the list price. Here's the full cash picture for Bay Area first-time buyers.
Budget beyond the mortgage
Cash to close
Down payment, lender fees, title/escrow, inspection, appraisal, prepaid taxes/insurance and moving costs. In the Bay Area, closing costs often run 2–4% of the purchase price on top of the down payment.
Monthly ownership payment
Principal + interest + property taxes + homeowners insurance + HOA + PMI if applicable. HOA dues are common in condos and new subdivisions.
Property taxes
California's Prop 13 keeps the base rate predictable, but new construction and recent sales can carry supplemental or Mello-Roos assessments.
Tax breaks
Mortgage interest deduction, property tax deduction and state credits like the First-Time Homebuyer Mortgage Credit Certificate can help, depending on your tax situation.
Maintenance reserve
Budget 1% of the home's value per year for ongoing maintenance. Older homes and resale properties may need more.
Opportunity cost
Your down payment is no longer invested elsewhere. Run a rent-vs-buy comparison over your planned hold period.
Percentages are rules of thumb. Your actual costs depend on purchase price, loan terms, property condition and tax situation.
Have a specific home in mind? The True Cost calculator turns these rules of thumb into real numbers for that property — including HOA and Mello-Roos/CFD, with an honest status on anything still unverified.