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How Much Do You Need to Buy a House in Torrance CA?

According to Zillow, the median home value in Torrance, CA is $815,300. Wow! Torrance home values have gone up 3.3% over the past year and Zillow predicts they will rise another 3.1% within the next year.  What does this mean if you are looking to buy a home in Torrance? The answer to this complex question involves not only the initial costs of buying a home, but also your ability to keep up with the long-term financial responsibility of owning it. The process starts with making a list of the features you want in the home. Next, look at the neighborhoods and the surrounding amenities. Then, research the location’s listings and the final selling prices. The information provides a good view of the market’s activity and the cost of the homes in the area.

How Much House Can You Afford in Torrance?



The "36" (known as the back-end ratio), means your entire debt load, which includes your mortgage as well as car payments, credit cards, student loans, and other monthly debt payments shouldn't exceed 36% of your pre-tax income.

Having a formula is nice, however what you can actually afford to buy will vary given that home prices in Torrance are on the higher end, your spending habits, and your overall financial health.

Out of Pocket Costs



Total Cash Needed


  • Total cash to buy this $800,000 home could reach $180,000.

Closing Costs

Rolled into the loan are closing costs at 2-3% of the loan amount. Using the above sample – at 3%, fees could reach $20,000 dollars. You could negotiate with the seller to pay all or a portion of the closing costs.


