How much will my monthly mortgage payment be?
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Your mortgage payment depends on loan amount, interest rate, and term. Example for a $500K loan at 6.5%: 30-year fixed: ~$3,160/month (P&I). 15-year fixed: ~$4,355/month (P&I). Add property taxes ($400-$600/month in San Diego) and insurance ($100-$250/month) for your total payment.
What's the difference between 15 and 30 year mortgages?
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30-year: Lower monthly payments, more total interest paid, more cash flow flexibility. 15-year: Higher monthly payments, much less total interest (save $100K+), build equity faster, typically 0.5-0.75% lower rate. Choose based on your cash flow needs and financial goals.
How much of my payment goes to interest vs principal?
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In the early years, most of your payment goes to interest. On a $500K 30-year loan at 6.5%: Month 1: $2,708 interest / $452 principal. By year 15: roughly even. Final years: mostly principal. Making extra payments early has the biggest impact on total interest saved.
Should I pay points to lower my rate?
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Each discount point costs 1% of your loan amount and typically lowers your rate by 0.25%. Calculate your break-even period: if a point saves you $125/month and costs $5,000, you break even in 40 months. Pay points if: you'll stay in the home 5+ years. Skip points if: you might move or refinance soon.
How does my credit score affect my mortgage rate?
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Credit score impact on a $500K loan: 760+: Best rates (lowest tier). 700-759: +0.25-0.5%. 660-699: +0.5-1.0%. 620-659: +1.0-1.5%. A 1% higher rate on a $500K loan costs about $300/month more — that's $108K over 30 years.