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Thinking of buying a home in the Big D? A Dallas, Texas, mortgage calculator can be a valuable tool for estimating your monthly payments and understanding the overall cost of a home loan. It doesn’t matter whether you’re a first-time homebuyer or looking to trade up to a newer or bigger home — this guide can walk you through all the factors that will influence your mortgage so you can find a home that fits within your budget.
Key Points
• The Dallas mortgage calculator will help you estimate your monthly payments and the total costs of taking on a home loan.
• Some key factors that influence your mortgage payment include the home price, your down payment amount, the interest rate, and the loan term.
• The calculator can help Dallas-area buyers determine a home’s affordability and assess the impact of various loan terms and interest rates.
• Many lenders recommend choosing a property at a price that lets you keep mortgage payments under 28% of your gross monthly income.
• Ways to reduce your housing expenses if you already own a home include dropping private mortgage insurance (PMI) once you reach 20% equity in your home, refinancing, or shopping for a lower homeowners insurance rate.
Dallas Mortgage Calculator
Calculator Definitions
Before you start plugging in the numbers, here’s a breakdown of key terms you’ll see in the calculator:
• Home price: This is the purchase price that you and the home seller agree upon mutually. The amount could differ from the real estate listing price or the initial offer you make as a potential buyer.
• Down payment: This is the amount you pay upfront when you buy a home. Down payment amounts are often expressed as a percentage of the home price, typically between 3% and 20%.
• Loan term: The loan term represents the length of time you will have to repay your home loan — usually 15 or 30 years. A shorter term comes with higher monthly payments but saves you money on total interest. In contrast, a longer term offers lower monthly payments but increases the overall amount of interest you’ll pay.
• Interest rate: The interest rate is what you’ll pay to borrow the money to buy your home, expressed as a percentage of the total loan amount. Interest rates vary based on the type of mortgage loan, borrower qualifications, and market trends.
• Annual property tax:The local government levies property taxes on land and buildings within their jurisdictions. This tax is usually expressed as a percentage of the assessed property value, and can be higher in major cities.
• Total monthly payment: This is the amount you must pay on your home loan each month. It will include a portion of the principal loan amount, interest, and likely property tax. Other costs it might include are private mortgage insurance (PMI), homeowners insurance, and homeowners association (HOA) fees.
• Total interest paid: This is the cumulative interest a borrower must pay over a home loan’s duration. It’s a number influenced by both the interest rate and the loan term.
• Total loan cost: This is the cumulative interest a borrower must pay over a home loan’s duration. It’s a number influenced by both the interest rate and the loan term.
How to Use the Dallas Mortgage Calculator
To use the Dallas mortgage calculator, follow these steps:
Step 1: Enter Your Home Price
Type in the agreed-upon purchase price. This figure will assist the calculator in estimating your home loan payment and overall costs.
Step 2: Select a Down Payment Amount
Choose the percentage of the home price you plan to pay upfront. The larger your down payment, the lower your monthly installments and total interest paid will be.
Step 3: Choose a Loan Term
Most borrowers select a 15- or 30-year term. A 30-year term generally lets you make lower monthly payments, while a 15-year term reduces the total interest you’ll pay.
Step 4: Enter an Interest Rate
Type in the interest rate you desire or have been offered to the second or third decimal point. This number will impact your monthly payment and the loan’s total cost.
Step 5: Add Your Property Tax Rate
Fill in the property tax rate as a percentage. The average property tax rate for Dallas is 1.68%. The calculator uses this number to add estimated property taxes to your monthly mortgage payment.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator can help you estimate your monthly payments for a potential home purchase. It will very quickly give you an idea of what the true cost of homeownership will be. If you’re buying a home for the first time, a mortgage calculator can help you see in a few moments just how much house you may be able to fit into your budget.
Another useful tool is called a home affordability calculator. This widget works a little differently, but it can be a big help if you’re dreaming of buying a home, since it allows you to work backward from your income level to figure out a house price you can afford with certainty.
You can also begin to get a clear view of your purchase budget and figure out what your ideal down payment would be by using a down payment calculator, which lets you explore amounts that might work for you.
One more path to enlightenment is to go through the mortgage preapproval process with a lender. This is a more in-depth process. Doing it will require you to locate and input real data and documents, usually doable on the lender’s website, but you will end up with specifics on what amount of money they would be willing to lend you, and at what interest rate.
Deciding How Much House You Can Afford in Dallas
The median single family home sale price in Dallas in 2025 was $425,000. Lenders advise a mortgage payment that does not exceed 28% of your gross monthly income. Within this parameter, you’d need an annual income of $122,000 to afford a home at this price. This assumes you would put down 20% ($85,000) and obtain a 30-year mortgage at 7.00%. The monthly payment on this loan, including principal, interest, and property taxes, would be $2,857.
When it comes to certain higher-priced properties, some homebuyers may need to seek out a jumbo loan. This sort of home mortgage loan requires a higher minimum down payment.
As a potential buyer, you may find the idea of putting down 20% on a pricier property daunting. In some cases, you might be able to opt for a smaller down payment — but that isn’t necessarily advisable. Keep in mind that doing this will increase your loan size, and in turn your monthly costs. It will also trigger PMI, which will add to your monthly payment. A mortgage calculator will help you run the numbers to make the best decision for your financial situation.
If you are looking at the possibility of a home loan guaranteed by the Federal Housing Administration (FHA), you can use an FHA mortgage calculator, which will factor in both upfront and ongoing mortgage insurance premiums that are specific to this option.
A VA mortgage calculator is another tool that you may find useful — look at this option if you are weighing the benefits of a loan backed by the U.S. Department of Veterans Affairs.
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
Your mortgage payment every month will be the sum of a few different amounts, including a portion of the mortgage principal (the amount you’ve borrowed) and interest accrued (the borrowing cost you pay your lender to let you use the money). The Dallas mortgage calculator includes property tax, too, since many lenders want you to take care of your taxes as part of your monthly payment.
Other components of a mortgage payment may include:
• Homeowners insurance: Protection against damage to your home and personal property.
• Private mortgage insurance (PMI): Required if your down payment is less than 20% of the home’s value.
• HOA fees: Monthly or annual fees paid to a homeowners association for maintenance and management of common areas and amenities in a community.
The cost of living in Dallas is just above the national average, according to COLI 2024 Annual Average Data, which means you’ll need a reasonable budget both to buy property and to live in this city. On an index where 100 is the U.S. average cost of living, the Big D weighs in at 101.8, making it the priciest of all the larger cities in Texas to live in.
When planning your housing budget, remember to account for additional expenses — utilities, healthcare, and other essentials — which tend to cost more than the national average and are generally higher than in other Texas cities.
Despite its posh reputation, Dallas makes the list of the best affordable places in the U.S. This city of 1.3 million people is a bit pricey for Texas, but relatively affordable when you compare it with other major U.S. cities. Dallas has a lot to offer, too — places to mingle with nature, vibrant nightlife and cultural offerings, major sports teams, and a bustling technology job market. Here’s how living costs in Dallas compare to the national index.
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.
Dallas First-Time Homebuyer Assistance Programs
If you have your sights set on buying your first home, there is support for you in Texas. The state has down payment asssitance programs in place that may be able to help you cover the initial costs. You may also qualify as a first-time homebuyer if you’ve not been the owner of a primary residence within the past three years.
If you find that the interest rate on your mortgage loan or your monthly payment doesn’t feel workable, there are some strategies you can try to lower it. Here are a few options to consider:
• Keep a watchful eye on your equity as it accrues, and ask your lender to remove PMI charges immediately when you reach 20%.
• Recast your mortgage by paying a lump sum toward the principal, then asking the lender to revise your monthly payment.
• Thinking about pursuing a mortgage refinance if your calculations show that current rates and costs overall could amount to a welcome savings for you.
• Consider an appeal of your property taxes — though only if you feel yours are unnecessarily high. Reassessments can backfire, resulting in your property tax going up instead of down, so exercise caution.
• If you run into financial hardship, ask your lender for a modification of the loan to increase its manageability.
• Look for ways to lower the cost of your homeowners insurance. This may be possible by increasing your deductible or bundling together cheaper policies.
The Takeaway
The Dallas mortgage calculator can be a powerful helper for anyone who is hoping to secure a home loan in this Texas city. The tool will help you estimate your monthly payments and total interest, plus show you the approximate overall cost of your mortgage, taking into account factors like down payment amount and property tax rate. Simply enter in the purchase price of the home, your down payment amount, the interest rate, the loan term, and the property tax rate to view your potential monthly mortgage payment.
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 monthly mortgage payment consists of your home loan’s principal and the interest you are paying on it. If you put down less than 20% of the purchase price, your payment will also include PMI, or private mortgage insurance. Lenders tend to roll property tax and homeowners insurance into the total, as well.
How will my credit score affect my mortgage loan interest rate?
Your credit score plays a large role in determining your mortgage interest rate. A higher score will generally lead to a more favorable rate and terms. You can work on building your score by making sure to pay all of your bills on time, keeping your credit utilization ratio low, and disputing any errors on your credit report.
What are the principal and interest on a mortgage loan?
Principal is the amount you borrow to purchase the home. Interest is what it costs you to borrow that principal, and it’s expressed as a percentage of that amount. Your early mortgage payments will mostly cover interest, but as you keep making your monthly payments, you’ll pay more and more to the principal, and pay it off little by little. You also build greater amounts of equity as you go.
Can I afford a $400K house on a $100K salary?
Whether or not you can afford a $400,000 house on a $100,000 salary depends on your personal financial circumstances. A $400,000 house, assuming a 20% down payment ($80,000), would be $2,129 per month for a 7%, 30-year loan. Lenders advise housing expenses to be no more than 28% of your monthly income. To afford that monthly payment, you’d need to make roughly $91,000 per year.
However, it’s important to also factor in your other debt obligations, which lenders advice be no more than 36% of your income (including your mortgage). If you are currently paying more than $600 per month in other debts, a $400,000 home would be a stretch.
SoFi Mortgages
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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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