If you borrow $998,600 at a fixed interest rate of 6.6% for 30 years, your principal and interest payment will be about $6,380 per month. This is roughly the scenario for buying a home at the median sale price in Torrance with a 20% down payment. Recently, the median sale price in Torrance is $1,248,253 (as of May 2026, Redfin).

Having a substantial amount saved up in advance can reduce your monthly payment and PMI burden, which is advantageous, but it can also mean tying up funds for a long time, which can be a drawback. Conversely, if you choose an FHA loan with a 3.5% down payment, your initial cash requirement drops to around $44,000, but the loan principal increases, and the mortgage insurance premium raises the monthly payment to about $7,700.

When deciding on the type of loan, credit scores are also considered. With an FHA loan, you can start with a 3.5% down payment if your credit score is 580 or higher, and if it's between 500 and 579, a 10% down payment is required (FHA.com). Conventional loans can start at 3% for first-time homebuyers or those with an area median income of 80% or less, but typically, most people prepare around 5%. If the down payment is less than 20%, PMI applies, and if it's 20% or more, this cost is eliminated, which is an important factor to weigh when deciding on the down payment percentage.

Property taxes can be estimated based on the average effective tax rate of 0.69% for Los Angeles County, where Torrance is located (propertytaxrates.org, as of 2026). However, there are areas with additional local bonds or special assessments, so it's safer to check the actual tax rate based on the property address.

For first-time homebuyers, CalHFA's MyHome Assistance Program is worth considering. It can provide support for up to 3% of the purchase price or appraised value for down payment or closing costs, which is beneficial, but it comes with conditions such as first-time homebuyer requirements, income limits, and completion of homebuyer education (CalHFA).

Korean families looking at school districts often mention the Torrance Unified School District's reputation. However, school district boundaries change frequently, so it's advisable to verify the assigned school for a property before purchasing.

If you're moving from another state, it's helpful to compare the total housing costs, including property taxes and homeowners insurance, alongside your previous residence rather than just looking at the monthly payment.

Closing costs are realistically estimated to be between 2% and 5% of the purchase price.

It's also worth noting that the MyHome Assistance Program can be applied in conjunction with CalHFA's own first mortgage products (CalHFA). A higher credit score can lead to more favorable interest rates, but if your credit history is short, it's better to address that first.

When making an offer, it's customary to include an earnest money deposit of 1% to 3% of the purchase price. A larger deposit can be seen as a more trustworthy offer by sellers, but it's important to note that you can only get the full amount back if there are no issues during the inspection. Additionally, you should budget in a way that keeps the monthly payment from taking up too much of your income to avoid long-term financial strain.

It's also a good idea to check the rate lock option. If the closing schedule is delayed, the lock period may end, and the interest rate could change, so it's safer to set the lock period according to the expected closing date.

This article is not investment or legal advice, and you should consult with a loan officer or real estate professional to confirm conditions that suit your personal situation before making any agreements.