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Navigating the Austin housing market means more than just finding the perfect home. It also means understanding how much you can really afford. This is where an Austin mortgage calculator can be a big help. By inputting details like home price, down payment, and loan terms, you’ll quickly see what your monthly payments (and overall costs) will be. Whether you’re a first-time buyer or considering a move, a mortgage calculator for Austin can help you make a confident, informed decision.
Key Points
• An Austin mortgage calculator estimates your monthly payments, total interest, and overall loan costs.
• To use it, simply input home price, down payment, loan term, interest rate, and property tax.
• A mortgage calculator will help you clearly see the impact of different down payment amounts or loan terms.
• Texas first-time homebuyer programs may offer aid for down payment and closing costs.
• Tips to reduce mortgage payments include: dropping PMI, recasting your mortgage, appealing property tax, and refinancing.
Austin Mortgage Calculator
Calculator Definitions
Before you start punching in numbers, it’s helpful to understand the terms you’ll encounter in a mortgage calculator:
• Home price: The home price is the purchase price you have agreed to with the home seller, which may differ from the listing price or your initial offer. This figure is important for determining the home loan amount and the type of mortgage loan you will need.
• Down payment: The down payment is the amount the homebuyer pays up front, often expressed as a percentage of the total purchase price. Most buyers put down between 3% and 20% of a home’s value for a conventional loan. If you put down at least 20%, you won’t need private mortgage insurance (PMI). A down payment calculator can help you decide on the right number.
• Loan term: The loan term is the length of time you have to repay the mortgage. Terms are typically 15 or 30 years. A shorter term reduces the total amount of interest you’ll pay over the life of the loan but leads to higher monthly payments.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the home loan amount. Interest rates vary based on your credit score, market trends, and the type of mortgage loan you choose. A higher credit score can secure a lower interest rate, reducing your monthly payments and the total cost of the loan over time.
• Annual property tax: Property tax can be a significant component of your monthly mortgage payment. This tax is based on the assessed value of your home and is administered by the local government.
• Total monthly payment: The total monthly payment includes the principal and interest on a mortgage loan, as well as the monthly property tax. This comprehensive figure gives you a clear understanding of your monthly financial commitment.
• Total interest paid: The total interest paid is the amount of interest you will pay over the life of the home loan. This figure can be substantial, especially for longer loan terms. Securing a lower mortgage rate can help reduce your monthly payments and total interest costs.
• Total loan cost: The total loan cost is the all-in amount you will repay for the home loan, including principal and interest. Factors like the length of your loan term, your interest rate, and your down payment amount all impact the total cost of your loan.
How to Use the Austin Mortgage Calculator
Using a mortgage calculator for Austin, Texas, is a straightforward process that can provide valuable insights into your home loan options. Here are the steps involved:
Step 1: Enter Your Home Price
Input the agreed-upon amount you will pay the seller for the property. This is not your loan amount, but it will have an impact on your borrowing needs.
Step 2: Select a Down Payment Amount
Consider how much you can realistically put down on the house, and enter that number here. The higher the number, the lower your loan amount (and monthly payments) will be. If you need a jumbo loan, you may need to put down at least 10%.
Step 3: Choose a loan term
Pick your mortgage term from the drop-down menu — 10, 15, 20, or 30 years. Keep in mind that going with a longer term will lower your monthly payments but lead to more interest paid and a higher total loan cost.
Step 4: Enter an Interest Rate
Provide the annual interest rate you expect to get on your mortgage, including any decimals. If you find a better rate, you can always recalculate. Your interest rate will affect your monthly payment and total loan cost.
Step 5: Input your annual property tax
Enter the annual property tax rate percentage for the property’s area to get the most accurate estimate of your monthly payment. To find yours, search online for the home’s ZIP code and “effective property tax rate.”
A mortgage calculator is a valuable tool for estimating your monthly mortgage payments and understanding the financial commitments involved in homeownership. It helps you assess how much house you can afford before you start house hunting, based on factors like loan amount, interest rate, and loan term. The calculator can also help you compare different scenarios, such as how different down payment amounts and interest rates affect your payments. By factoring in local property tax, the calculator provides a better view of the cost of homeownership.
Using a mortgage calculator can be useful for first-time homebuyers, as well as anyone looking to make an informed financial decision in the Austin real estate market.
The median sale price of a home in Austin was $550,000 in late 2025, according to Redfin. Can you afford it? Using the Austin mortgage calculator, and assuming a 20% down payment ($110,000) and an interest rate of 6.50% on a 30-year loan, your monthly payment would be $2,795, including property tax (1.61%).
A common rule of thumb is to keep your housing costs below 28% of your gross monthly income. To be able to afford a $2,795 monthly payment and still stay below that threshold, you would need annual earnings of around $120,000. If you prefer to work backward from your income to decide how much home you can afford in Austin, consider using a home affordability calculator.
Another way to determine affordability is to go through the mortgage preapproval process with a lender, which involves providing detailed financial information. The lender can let you know whether or not you qualify for a loan and, if so, in what amount and under what terms.
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 the principal and interest on the loan. The principal is the portion of the payment that goes toward paying down the loan balance, while the interest is the cost of borrowing the money. With each payment you make on a home loan, an increasing portion will go toward paying down the principal, gradually reducing the overall loan balance. Your monthly payment may also include property tax, which is typically divided into monthly installments and added to your mortgage.
Some lenders will also include home insurance and homeowners association (HOA) fees in a monthly payment. And if your down payment is under 20% of the home price, you can also expect to see a fee for PMI on your monthly mortgage bill.
If you’re considering a home loan guaranteed by the Federal Housing Administration (FHA), you’ll want to use an FHA mortgage calculator, which considers that type of loan’s mortgage insurance premiums. A VA mortgage calculator, on the other hand, can be helpful if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
Cost of Living in Austin
The cost of living is an important consideration when you’re thinking about your monthly mortgage payment, as it will affect how much cash you have on hand to pay your bill. The cost of living in Austin is slightly below the national average. The city has a cost of living index of 97.4 (the average cost of living in the U.S. is 100 on this scale). The chart below shows how costs break down across different categories. According to MIT’s Living Wage Institute, two working adults (working full-time) with two children would need to each earn at least $27.78 an hour to support themselves in Austin.
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.
Austin’s First-Time Homebuyer Assistance Programs
If you’re thinking about buying your first home in Austin, you can explore and take advantage of Texas first-time home-buying assistance programs to help cover the initial costs associated with homeownership. Anyone who hasn’t owned a primary home in the past three years is considered a first-time homebuyer in Texas, which is in line with the federal government’s definition. These programs can provide significant financial aid specifically intended for the down payment, closing costs, or both, effectively making homeownership more accessible and affordable.
Some down payment assistance programs are statewide, but others are for particular cities, towns, and counties, so it’s a good idea to also explore your local options.
Tips on Reducing Your Mortgage Payment
Even after you’ve purchased a home, there may be ways to reduce your monthly mortgage payment. Here are some to consider:
• Once you’ve reached 20% equity in your home, request that your lender drop PMI.
• If you receive a bonus or unexpected windfall, consider mortgage recasting. This involves making a lump-sum payment toward the principal and asking your lender to recalculate your monthly payment based on the new, lower outstanding principal balance.
• Appeal your property taxes if you believe your assessment is too high. Research recent comparable property assessments and gather evidence to support your case.
• If you experience financial difficulties, ask your lender to modify your loan. Your lender may agree to extend the term of your loan to lower payments. Just keep in mind that this will increase the total amount you’ll pay in interest on the loan.
• Explore mortgage refinancing if interest rates have dropped significantly below your current rate, or your credit score has markedly improved. When comparing costs, be sure you factor in the closing costs on a new loan.
The Takeaway
Using an Austin mortgage calculator can provide valuable insights into your home-buying budget. You can mix and match different numbers, such as home price, down payment amount, and loan rates/terms, to find a combination that yields a monthly mortgage payment you can afford. This simple exercise can give you a clearer picture of how much house you can comfortably buy in Austin and the financial commitments involved in homeownership.
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.
The median monthly mortgage payment in Austin in the second quarter of 2025 was $1,664, according to the National Association of Realtors®. But as a mortgage calculator shows, an average payment can fluctuate based on several factors, including the price of the home, the prevailing interest rate, and the term length of the loan.
How does my credit score affect my mortgage loan interest rate?
Your credit score plays a key role in determining your interest rate on a mortgage. A higher score (ideally 700-plus) can lead to a lower interest rate, which, in turn, can significantly reduce your monthly mortgage payments and decrease the total cost of the loan over time. Conversely, a lower credit score may result in a higher interest rate, potentially making the mortgage considerably more expensive.
What are principal and interest on a mortgage loan?
The principal represents the amount you borrow initially to purchase the home, while interest is the cost associated with borrowing that principal amount. Your total monthly payment includes both the principal and the interest, and the proportion of each can vary considerably over the life of the loan. Initially, a larger portion of your payment goes toward interest costs, but this gradually shifts over time as you consistently pay down the principal balance.
How much should I put down on a mortgage?
Deciding how much to put down on a mortgage is an important decision that depends on your individual financial situation and overall financial goals. A higher down payment (at least 20%) can significantly reduce your monthly payments and eliminate the need for private mortgage insurance (PMI), which can save you money over the life of the loan. To help you make an informed decision, consider using a down payment calculator to explore different scenarios. This will allow you to find the best balance between upfront costs and ongoing monthly payments.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
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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