Money
The true cost of buying, beyond the mortgage
A mortgage quote is only part of the picture. Here's everything that actually shows up in a Bay Area buyer's monthly payment and closing costs.
Every month
What's really in your monthly payment
Principal & interest
The core loan payment — the only piece most online calculators show.
Property tax
Roughly 1.1–1.3% of purchase price per year in most Bay Area counties, plus local bonds.
Homeowners insurance
Higher than it used to be across California; get a real quote before you rely on an estimate.
Mortgage insurance (PMI/MIP)
Applies below 20% down on most loans, until you build enough equity.
HOA dues
Common on condos, townhomes and many newer single-family communities.
Maintenance & reserves
A common rule of thumb is 1% of home value per year set aside for upkeep.
At closing
What you pay once
Down payment
The largest one-time cost, ranging from 3% to 20%+ of the price.
Closing costs
Typically 2–3% of the purchase price: loan fees, title, escrow, and inspections.
Moving & setup
Movers, deposits, and outfitting a new home — easy to underestimate.
Worked example
A demo home, priced out
Illustrative only — every real number here should be checked against your own lender quote.
| Purchase price | $950,000 |
| Down payment (10%) | $95,000 |
| Loan amount | $855,000 |
| Estimated closing costs (~2.5%) | $23,750 |
| Estimated cash to close | $118,750 |
Demo figures at a 6.5% illustrative rate. Use the calculator for a version based on your own numbers.
Get the Bay Area first-home numbers each month
City price updates, assistance program changes, new construction openings, and honest notes from our own buying journey. No listings spam.