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If you’re considering buying a home in Houston, Texas, using a mortgage calculator can help you determine how much house you can afford. By inputting variables like home price, down payment, loan term, and interest rate, you can get a clear picture of what your monthly payments and overall financial commitment would be as a potential homebuyer, and understand how that would interact with other costs and concerns as a resident of the Space City.
Key Points
• Using the Houston mortgage calculator, you’ll be able to estimate your monthly payments and the total cost of your home loan.
• Your loan’s term, typically 15 or 30 years, will significantly affect both your monthly payments and the total interest you’ll pay. A 15-year term will always offer savings on interest, but with the tradeoff of higher monthly payments.
• The calculator can help you easily estimate and envision the impact of different interest rates, down payment amounts, and loan terms.
• A larger down payment, such as a standard 20%, will let you avoid private mortgage insurance (PMI) and potentially secure a better interest rate, making the mortgage more affordable in the long run.
• Down payment assistance programs in Texas can help low-income buyers, veterans, and first-time homebuyers, since they may offer grants or reduced-interest loans that will help cover part of your down payment.
Houston Mortgage Calculator
Calculator Definitions
• Home price: The purchase price you’ve agreed to with the home seller is the home price. It may differ from the listing price or the initial offer you make, and is a key determiner of how much of a home loan you need, and what the overall cost of homeownership will be.
• Down payment: Your down payment is the amount you pay upfront as the homebuyer. It’s almost always a percentage of the home price — most buyers put down between 3% and 20%.
• Loan term: The loan term is the length of time you have to repay your home loan. A 15-year term will offer you savings on interest compared to a longer term, but higher monthly payments. A 30-year term gives you lower payments but means you’ll fork over more interest over the life of the loan.
• Interest rate: The interest rate, expressed as a percentage of the loan amount, is the cost of borrowing the money to buy your house. Interest rates vary based on the type of mortgage loan, the borrower’s qualifications and financial profile, and market trends.
• Annual property tax: Property tax is a significant component of your monthly mortgage payment, and it’s typically a percentage of your home’s assessed value. If you find the property tax to be too high, you can appeal your property taxes to potentially lower your annual bill (but be careful, more on this later).
• Total monthly payment: In this calculator, the principal, interest, and property tax you will owe add up to your total monthly payment. Understanding these components will help you budget effectively and make informed decisions about your mortgage options.
• Total interest paid: This is the amount of interest you’ll pay over the life of the loan. The total interest paid figure can be substantial, and is influenced by your interest rate and loan term, and the amount you borrow. A lower rate can make a major difference in how this total adds up.
How to Use the Houston Mortgage Calculator
Step 1: Enter the Home Price
Type in the price you’ve agreed to pay. The calculator uses this figure to estimate your home loan payment and overall costs.
Step 2: Select a Down Payment Amount
Choose the percentage of the home price you’ll pay upfront. The bigger your down payment, the lower your monthly installments and total interest paid will be. A 20% down payment will also help you avoid private mortgage insurance (PMI).
Step 3: Choose a Loan Term
Terms of 15 or 30 years are most common. A 30-year term generally gives you lower monthly payments, but a 15-year term will sharply reduce the total interest you pay.
Step 4: Enter an Interest Rate
Add the interest rate you desire or have been offered, up to the second or third decimal point. This number impacts your monthly payment and the total cost of the loan.
Step 5: Add Your Property Tax Rate
Fill in the property tax rate as a percentage. The average county tax rate for Houston is 1.771%. To find rates for surrounding municipalities, search online for the city, county, or ZIP code and “effective property tax rate.” The calculator adds property tax to your monthly payment.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps you figure out your approximate monthly payments for a potential home purchase. It can quickly ballpark for you what your monthly and long-term costs of homeownership will be, so you can see how much house you’ll be able to fit into your budget.
Another useful tool is a home affordability calculator. This widget works a little differently, allowing you to work backward from your income level to figure out a house price you’ll be able to afford the payments on.
You can also get a clearer view of your purchase budget and figure out what your ideal down payment would be by using a down payment calculator. It lets you explore how your down payment amount affects what you’ll pay monthly and how much you’ll need to put down if you’ve got your eye on a dream house.
One more way to explore options is to go through the mortgage preapproval process with a lender. This requires you to locate and input real data and documents, usually doable on the lender’s website. You will end up that much smarter, knowing how much money lenders will approve you for, and at what interest rates.
Deciding How Much House You Can Afford in Houston
The median single-family home sale price in Houston in the spring of 2025 was $355,000. Lenders advise a mortgage payment does not exceed 28% of your gross monthly income. Within this parameter, you’d need an income of almost $110,000 per year to afford a home at this price. This assumes you would put down 20% ($71,000) and obtain a 30-year mortgage at 7.00%. The monthly payment on this loan, including principal, interest, property tax, and insurance, would be about $2,540.
When it comes to properties that are above the average local price, some homebuyers may need to find a jumbo loan to finance their purchase. Keep in mind that this sort of home mortgage loan requires a higher minimum down payment.
As a buyer, you may find the idea of putting down 20% on a pricier property daunting. In some cases, you can possibly opt for a smaller down payment, but it isn’t the most advisable move. It will increase your loan size and your monthly costs, and also trigger PMI — another line item in your monthly payment. Use a mortgage calculator to run the numbers and look at how different scenarios add up, and then make a sound decision for your financial situation.
If you’re looking at the possibility of a Federal Housing Administration (FHA)-guaranteed home loan, you can use an FHA mortgage calculator, which factors in both upfront and ongoing mortgage insurance premiums specific to this option.
A VA mortgage calculator is another tool that you could find useful — look at one of these if you’re 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 monthly payment on a mortgage will be the sum of a few different items, including a portion of your loan principal and interest it has accrued. Want to secure the most favorable rate? Work on building your credit score, spend some time shopping around for lenders, and explore different loan programs available to you.
The Houston mortgage calculator includes property tax, as many lenders require you to pay them as part of your monthly payment. PMI will also need to be in there if your down payment is less than 20%. Lenders often like to add in home insurance and homeowners association (HOA) fees, too.
The cost of living in Houston is below 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 Space City weighs in at 94.2, making it more affordable than Austin, Dallas, or Fort Worth. When you’re thinking about your housing budget, remember that you’ll need to pay for other things, too. Grocery and health-related expenses are at about the national average here, even though housing is a bit more affordable than it is in comparison to other Texas cities.
Houston makes the list of the best affordable places in the U.S. This city of 2.3 million people is affordable when you compare it with other major U.S. cities. Houston has a lot to offer, too — spots to commune with nature, a variety of cultural and arts scenes, and the famous NASA Space Center to boot. Here’s how living costs in Houston 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.
If you have your sights set on buying your first home, there is support for you in Texas. The state has down payment assistance 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 have not owned a primary residence within the past three years.
Programs like the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation at times provide first-time homebuyers with financial aid for a down payment, closing costs, or both, making homeownership more accessible. The state’s first-time homebuyer programs for Texas residents include options for potential newbie and repeat homebuyers.
Tips on Reducing Your Mortgage Payment
If you find that your monthly payment on your home loan doesn’t feel workable, or the long view on your interest rate looks concerning, here are some strategies you can use to try to lower vital variables:
• Keep a watchful eye on your equity. When it reaches 20%, immediately ask your lender to remove PMI charges.
• Pay a lump sum toward your loan’s principal, then ask the lender to revise your monthly payment. This move is known as recasting your mortgage.
• Think about doing a mortgage refinance if your calculations show that current rates and costs could mean that a new rate will bring you savings. (Remember to factor in closing costs.)
• Appeal your property taxes if you believe your assessment is too high. A successful appeal can reduce your property tax bill, but use caution: If you invite scrutiny of your home’s value, you could end up with even higher taxes.
• If you run into financial hardship, talk to your lender, explain the situation, and request a modification of the loan to make it more manageable. This might involve extending the term, which will lower monthly payments. It will increase the total interest paid over the life of the loan.
• Look for ways to lower your homeowners insurance costs. You may be able to do this by increasing your deductible or bundling together cheaper policies.
The Takeaway
The Houston mortgage calculator can be a great helper if you’re hoping to secure a home loan in this sprawling city. This tool can help you estimate what your monthly payments will be and figure out the total interest or overall cost of your mortgage, taking into account factors like down payment amount and property tax rate. The calculator will give you a solid starting point for getting a mortgage preapproval and can help you assess your best mortgage options.
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 made by Houston homeowners in the first quarter of 2025 was $1,763, according to the National Association of Realtors®. But as a mortgage calculator shows, average payments can fluctuate based on several factors, including home price, the prevailing interest rate, and the loan’s term length.
How will my credit score affect my mortgage loan interest rate?
Your credit score is a key factor for lenders when they determine the interest rates they will offer you on your mortgage loan. The higher your credit score (at least 700 is a good goal), the lower your interest rate, which as a rule means smaller monthly payments and a more desirable total loan cost. Conversely, a lower score may result in a higher interest rate and tougher lender requirements.
What are principal and interest on a mortgage loan?
When you take out a mortgage to buy a home, your monthly payment typically includes two main components: principal and interest. The principal is the base amount you borrow from the lender. The interest is the cost of borrowing the money, and is calculated based on the interest rate the lender offers you. Your lender will provide you with an amortization schedule showing exactly how much of each payment will go toward principal versus interest as you pay off the loan.
How much should I put down on a mortgage?
Your down payment on a mortgage depends on the type of loan you choose and your individual financial situation. Putting down at least 20% of the home price helps you avoid PMI, or private mortgage insurance, and often helps secure a better interest rate. But in many housing markets, 20% is a challenge to come up with, particularly for a first-time homebuyer. Put down what you can afford without bankrupting your emergency fund or straining to cover your new home’s upkeep or other unexpected expenses.
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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