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Buying a home is a major financial decision, especially when you are buying your first home. If you’re house hunting in Amarillo, Texas, a mortgage calculator can be a useful tool. It can help you quickly and easily estimate payments, loan costs, and down payment impact. You can compare how different interest rates and loan terms will impact your finances without doing the math yourself. Try this tool to get a head start on smart home loan planning.
Key Points
• The Amarillo mortgage calculator helps estimate monthly mortgage payments and total loan costs, including property taxes, for homes in Amarillo, Texas.
• A 15-year mortgage term generally results in higher monthly payments but lower total interest, while a 30-year term offers lower monthly payments but higher overall interest costs.
• Your credit score can significantly impact the mortgage interest rate you can secure, with higher scores leading to lower rates and monthly payments.
• Property taxes, homeowners insurance, and HOA fees may be components of your total monthly mortgage payment and should be factored into your budget.
• Programs are available to provide down payment assistance; different types of loans requiring smaller down payments can also help some prospective homeowners.
Amarillo Mortgage Calculator
Calculator Definitions
Here are the key terms to familiarize yourself with when using the Amarillo mortgage calculator.
• Home price: The home price is the purchase price you have agreed to with the home seller. It’s an important input for a home loan, as it directly affects the loan amount and your monthly payments.
• Down payment: The down payment is the amount the homebuyer pays upfront, often expressed as a percentage of the total purchase price or else a lump sum. In terms of percentages, most buyers put down between 3% and 20%.
• Loan term: The loan term is the length of time you have to repay the mortgage. There are different types of mortgages to consider: A 15-year term generally results in higher monthly payments but lower total interest, while a 30-year term offers lower monthly payments but higher interest costs.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. A higher credit score and a larger down payment can help secure a lower mortgage interest rate, reducing the overall cost of the loan.
• Annual property tax rate: The annual property tax is a significant component of your monthly mortgage payment. It is based on the assessed value of your home and varies significantly depending on the location and value of your property.
• Total monthly payment: The total monthly payment includes the principal amount, the interest accrued, and the property tax obligations you pay each month to the local government.
• Total interest paid: The total interest paid represents the aggregate amount of interest you will pay over the entire life of the loan. A larger down payment can reduce the total interest paid.
• Total loan cost: The total loan cost represents the all-in amount you will ultimately pay for the loan. This includes both the principal amount borrowed and all accrued interest costs over the life of the loan.
How to Use the Amarillo Mortgage Calculator
The Amarillo mortgage calculator is a powerful tool for estimating your monthly mortgage payments and understanding the financial aspects of homeownership in Amarillo, Texas. To use it, input the home price, down payment percentage, loan term, and interest rate.
Step 1: Enter Your Home Price
To use the Amarillo mortgage calculator effectively, start by inputting the home price that you and the seller have agreed upon.
Step 2: Add Your Down Payment Percentage
Next, enter the down payment as a dollar amount.
Step 3: Enter Your Loan Term
Type in your loan term in years, between 10 and 30. While many people consider a standard home loan term to be 30 years, other lengths, such as 15 years, are popular as well.
Step 4: Enter Your Interest Rate
In this step, you’ll add your interest rate to the Amarillo home loan calculator. Enter your projected interest rate to the second or third decimal point to get more accurate estimates.
Step 5: Add Your Property Tax
Enter the local property tax rate as a percentage to estimate your total monthly payment.
With the above information added, the calculator can provide you with a solid estimate of your monthly payment, total interest paid, and the total loan cost. You can then compare options to find the mortgage that offers the right fit for your financial priorities and your budget.
A mortgage calculator helps estimate house prices and monthly payments based on loan amount, interest rate, and term. It allows you to compare interest rates, fixed vs. variable mortgages, and loan durations to understand the impact on your payments and total interest.
Assessing different down payment sizes can help you avoid private mortgage insurance (PMI) and reduce your monthly expenses. For refinancing a home loan, the calculator can compare your current mortgage with potential offers to identify potential savings. However you use it, the Amarillo mortgage calculator can be a valuable tool as you figure out how buying a home fits into your overall financial picture.
Deciding How Much House You Can Afford in Amarillo
In late 2025, the median Amarillo home sale price was $220,000, down 10% versus the prior year. A good formula to keep in mind as you house-hunt: Lenders advise keeping housing costs (mortgage, taxes, insurance, fees) below 28% of gross monthly income. Let’s assume you put down 20% on a $220,000 home, with a 30-year mortgage at 6.50% interest. Your monthly payment would be about $1,113. To afford that payment, you’d need to make about $48,000 a year.
Lenders also recommend that total debt payments stay within 36% of gross monthly income. In the scenario above, you could afford about $327 a month for other debts, such as an auto payment or student loans. If your debts amount to more than that, you’ll need a higher income to afford a median-priced home in Amarillo. A home affordability calculator can help you estimate what you can afford.
Lifestyle and family size also play a role in determining how much house you can afford, so it’s wise to balance these factors with your financial goals. Cost of living plays a role, too (more on that below). Considering these factors can be especially true if you are a first-time home buyer.
Preapproval can offer a better estimate of your borrowing capacity and help you make informed decisions. Additionally, understanding the mortgage preapproval process can strengthen your position as a buyer and ensure you find a home that fits your budget.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Components of a Mortgage Payment
The main components of a mortgage payment are principal and interest. The principal is the initial amount you borrow from a lender to purchase the home, while the interest is the cost of borrowing that money. Your regular monthly mortgage payment includes both the principal amount and the interest charge, with the proportion of each changing over the life of the loan.
Initially, a larger portion of your payment is allocated toward interest, but as the loan amortizes, more of your payment goes toward reducing the principal balance.
Property taxes are another significant component, based on the assessed value of your home and varying by location. Understanding these components can help you better manage your budget and financial planning.
If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), use an FHA mortgage calculator, which takes into consideration both the loan’s upfront and ongoing mortgage insurance premiums.
A VA mortgage calculator is your best bet if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
Cost of living impacts affordability, and is an important factor to consider when shopping for real estate. Areas with higher costs of living often have higher home prices, utilities, and transportation expenses. For example, Amarillo’s cost of living index is 83, meaning it’s 17% lower than the national average. It’s also 12% lower than the average across the state of Texas. Here’s a bit more detail about the cost of living in Amarillo.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
Here are some tactics that can help you lower your home loan costs:
• Make extra payments to pay down the principal faster, which can lower your monthly payments and reduce the total interest paid over the life of the loan. Even small additional payments can have a significant impact over time.
• Drop private mortgage insurance (PMI) once you have 20% equity in your home, either through regular payments or home appreciation. This can significantly reduce your monthly mortgage payment.
• Shop around for cheaper homeowners insurance. Comparing quotes helps find the best coverage at a lower rate.
• Consider mortgage recasting if you receive a financial windfall, such as an inheritance or major refund. By making a lump sum payment toward your mortgage principal, your lender will re-amortize the loan, resulting in lower monthly payments.
• Appeal your property taxes if you believe they are excessively high. Research recent comparable property assessments and gather evidence to support your case, then submit a formal appeal to the local tax assessor’s office.
• Seek modification of your loan if you are facing financial hardships. This can involve extending the loan term, reducing the interest rate, or lowering the outstanding principal balance. Contact your lender to discuss your options and provide comprehensive documentation of your financial situation.
If you’re considering buying your first home in Amarillo, there are several down payment assistance programs available to help you cover the initial costs associated with homeownership. These valuable programs can provide financial aid specifically designated for the down payment, closing costs, or potentially both aspects of the transaction.
To qualify as a first-time homebuyer for most of these programs, you typically must not have owned a primary residence within the past three years. Be sure to check with local housing authorities and reputable lenders in the Amarillo area to find out more detailed information about the specific Texas first-time homebuyer programs available and, importantly, how to apply for them.
The Takeaway
If you are thinking of buying a home in Amarillo, Texas, using a mortgage loan calculator can provide valuable insights. It can help you understand how all relevant factors, including your anticipated down payment, the projected interest rate, and other potential additional costs impact your loan. Considering all these elements allows you to make informed decisions about homeownership in Amarillo.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
A median priced home in Amarillo is about $154,000, according to the National Association of Realtors®. However, the average mortgage payment in Amarillo varies based on factors like the size of your down payment and prevailing interest rates. Your credit score will also have an impact. To get a tailored and more precise estimate, consider using an Amarillo mortgage calculator.
How does my credit score affect my mortgage loan interest rate?
Your credit score plays a significant role in determining your interest rate when applying for a mortgage loan. A higher credit score can help you secure more favorable interest rates, reducing your monthly payments and the total amount of interest paid over the life of the loan. Conversely, a lower credit score may result in higher interest rates.
What are principal and interest on a mortgage loan?
Principal and interest are key components of a mortgage loan. The principal is the initial amount you borrow from a lender to purchase the home, while the interest is the cost of borrowing that money. Your regular monthly mortgage payment includes both the principal amount and the interest charge.
How much should I put down on a mortgage?
The amount you should put down when obtaining a mortgage depends on your financial situation and the type of loan you choose. A 20% or higher down payment can eliminate the requirement for private mortgage insurance (PMI) and potentially reduce your ongoing monthly payments. However, most people put down much less than that. If you’re a first-time homebuyer, various options like FHA loans often allow for low down payments, typically around 3.5% of the purchase price.
Should I choose a 30-year or 15-year mortgage term?
When choosing between a 30-year and 15-year mortgage, consider your finances. A 30-year term offers lower payments but higher overall interest paid over the life of the loan. A 15-year term has higher payments but saves you significantly on interest. If you can afford it, a 15-year mortgage builds equity faster. If you need budget flexibility, a 30-year term may be better.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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