HomeMathSan Jose, California Mortgage Costs
The average home in San Jose costs $1,380,000, with a 0.67% property tax rate and typical insurance of $2,600/year. Use the calculator above to estimate your monthly PITI payment for a San Jose home.
What does PITI include?
Your monthly payment has four parts: principal (the amount you borrowed), interest (the cost of borrowing it), taxes (property tax collected monthly) and insurance (homeowners insurance, plus PMI if your down payment is under 20%). Together they add up to the true cost of owning your home.
The 28% rule
A useful rule of thumb: keep your full PITI payment under 28% of your gross monthly income. To work backward, divide your target payment by 0.28 to see the income it requires.
Bi-weekly vs monthly
Paying bi-weekly means 26 half-payments a year — equal to 13 full payments instead of 12. That one extra payment a year goes straight to principal and can cut several years off a 30-year mortgage.