The Total Cost Shock
The sticker price of a home in San Jose is roughly $1,250,000, but the *real* cost is excluded from the sales tag. Over 30 years, assuming a typical loan, you will pay roughly $1,656,668 in interest alone to the bank—almost double the house price.
The "Hidden" Tax Schedule
Generic schedules often ignore escrow. In San Jose, where property tax rates average 0.75%, you will pay an estimated $281,250 in California property taxes over the life of the loan. This is a "hidden" cost that does not build equity.
The Early Payoff Strategy
Accelerating your payoff in CA is one of the best guaranteed returns available. Paying just +$100/mo toward principal saves roughly $298,200 in interest and shaves years off your debt.
The Equity Milestone (PMI)
Building wealth takes patience. Starting with 5% down, you won't hit the critical 20% equity milestone to remove PMI until roughly Year 10, Month 10. This timeline underscores the value of aggressive early payments.
Principal vs. Interest Ratio
In the early years, the bank gets paid first. In Year 1, 87% of your payment goes purely to interest. Visualizing this "Interest Curve" is the best motivation to start prepaying today.
Frequently Asked Questions (FAQ)
Tools & Data Verified by the EverydayCalculators Financial Research Team.
Last updated: December 2025.