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A Plano mortgage calculator helps prospective homebuyers estimate their monthly payments, total interest paid, and the overall cost of a home loan. Whether you’re a first-time buyer or a seasoned homeowner, understanding the financial implications of different mortgage scenarios helps you make informed decisions and create a budget you can confidently manage. Read on for how to use a Plano mortgage calculator.
Key Points
• A Plano mortgage calculator helps estimate monthly payments, total interest, and overall loan costs.
• The down payment, typically 3% to 20% of the home price, can significantly affect your monthly mortgage payments and total interest paid.
• Down payment assistance programs in Plano can provide grants or low-interest loans to eligible buyers, reducing the financial burden of purchasing a home.
• A 15-year mortgage term in Plano offers lower total interest paid but higher monthly payments compared to a 30-year term, which is more budget-friendly in the short-term but costlier in the long run.
• Building your credit score and shopping around for the best interest rates can help you secure a lower mortgage interest rate, significantly reducing your monthly payments and total interest paid.
Plano Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you have agreed to with the home seller. It directly affects your monthly payments, total interest paid, and the overall cost of the home loan.
• Down payment: The down payment is the amount the homebuyer pays upfront, often expressed as a percentage of the total purchase price. A larger down payment can reduce your monthly mortgage payments and the total interest paid over the life of the loan.
• Loan term: The loan term is the length of time you have to repay the mortgage. A 15-year term offers lower total interest paid but higher monthly payments, while a 30-year term provides lower monthly payments but higher total interest over time.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. A lower interest rate can significantly reduce your monthly payments and the total interest paid over the life of the loan.
• Annual property tax: The annual property tax is an ongoing cost of homeownership. In Plano, it is typically around 1.66% of the home’s assessed value and is used to fund various public services.
• Total monthly payment: The total monthly payment includes the principal and interest you will pay each month.
• Total interest paid: The total interest paid is the amount of interest you will pay over the life of the loan. A lower interest rate can significantly reduce this figure, making it an important consideration when shopping for a home loan.
• Total loan cost: The total loan cost is the all-in amount you will pay for the loan, including both the principal and the interest.
The calculator estimates your monthly payment, total interest paid, and total loan cost. Below is a step-by-step tutorial on how to use the Plano mortgage calculator.
Step 1: Enter Your Home Price
The home price is the purchase price of the home. This figure helps the calculator estimate your monthly mortgage payment, total interest paid, and the overall cost of the loan.
Step 2: Select a Down Payment Amount
The down payment is the portion you pay upfront for the home. A larger down payment can reduce your monthly mortgage payments and potentially eliminate the need for private mortgage insurance (PMI). A down payment calculator can help you decide on your number.
Step 3: Choose a Loan Term
The loan term is the length of time you have to repay the mortgage, usually 15 or 30 years. A shorter term can result in higher monthly payments but significantly less interest paid over the life of the loan.
Step 4: Enter an Interest Rate
Enter your desired interest rate. Your interest rate will have a major impact on your monthly payment and total loan cost. If you’re looking at large loan amounts (over $800K), you’ll want to research rates for jumbo loans.
Step 5: Add Your Annual Property Tax Rate
Property taxes are what you will pay each year to the local government. Enter the property tax percentage, not the dollar amount. Property taxes vary by location, with the Plano property tax rate being 1.66%.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator offers detailed insights into the financial aspects of purchasing a home. It helps estimate your monthly payments, total interest paid, and the overall cost of the mortgage, allowing you to compare different scenarios and make informed decisions.
You can see how a higher down payment or a lower interest rate can significantly reduce your monthly payments and total interest costs. Additionally, the calculator can help you understand the impact of different loan terms, such as a 15-year versus a 30-year mortgage, on your budget and long-term financial health.
Mortgage calculators are also particularly useful for first-time homebuyers, who may not be aware of all that goes into a mortgage payment and how that payment is determined. Keep in mind, though, that the calculator is designed for fixed-rate mortgages. If you choose a loan with a variable rate, your payment will not remain the same throughout the life of the loan.
By using a mortgage payment calculator, you can set realistic savings goals, plan your budget effectively, and ensure that your home purchase is financially feasible.
In Plano, the median home sale price in August 2025 was $500,500. Lenders generally recommend keeping housing costs (mortgage, taxes, insurance, HOA) under 28% of your gross monthly income. For example, to afford a $500,500 home with a 20% down payment ($100,100) and a 7.00%, 30-year mortgage, you would need an annual income of about $114,000. This would result in a monthly mortgage payment of $2,664.
Factors like your credit score, down payment, and interest rate can significantly influence your ability to afford a home. Using a home affordability calculator can help you estimate what you can afford based on your income, expenses, down payment, and current mortgage rates.
It can also be useful to go through the mortgage preapproval process with a potential lender to get a clear picture of how much of a loan you can afford.
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 mortgage 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. Additionally, your monthly payment may include property tax, which is 1.66% in Plano. Your monthly payment may also include private mortgage insurance (PMI), homeowners insurance, and homeowners association (HOA) fees.
If you’re considering an FHA loan, you may want to use an FHA mortgage calculator, which allows for that kind of loan’s mortgage insurance premiums.
Likewise, a VA mortgage calculator can be helpful if you’re looking at a loan backed by the U.S. Department of Veterans Affairs.
Cost of Living in Plano, TX
Plano has a high cost of living, about 10% above the national average. Housing costs are particularly high, around 16% above average. The national average cost of living is indexed at 100; Plano’s index is 110.0. Here’s how Plano compares to the national average in other areas:
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.
Plano’s First-Time Homebuyer Assistance Programs
If you’re buying your first home in Plano, you can take advantage of down payment assistance programs to help cover initial costs. These programs are designed for first-time homebuyers who have not owned a primary residence within the past three years. They offer financial aid for the down payment, closing costs, or both, making it easier to enter the housing market.
If you’re looking to reduce your mortgage payment, whether before purchasing a home or after you close, consider the following tips:
• Make a 20% down payment. Putting down 20% (or more) of the purchase price of the home allows you to bypass private mortgage insurance, which can add hundreds of dollars to your monthly payment.
• Drop private mortgage insurance (PMI) once you reach 20% equity in your home. If you’re currently paying PMI, work at getting it dropped. This can be achieved through regular payments or home appreciation, significantly lowering your monthly mortgage payment.
• Consider mortgage recasting if you receive a bonus or other windfall. By making a lump sum payment toward your mortgage principal, your lender will re-amortize the loan, resulting in a new, smaller balance and lower monthly payments.
• Appeal your property taxes. If you believe your property assessment is too high, research recent sales of comparable properties in your area and present this information to your local tax assessor to potentially lower your property taxes.
• Modify your loan if you face financial difficulties. This process involves changing the terms of your mortgage to make it more manageable, such as extending the loan term to lower monthly payments.
• Refinance your mortgage. If rates drop or you’ve built your credit score, consider a mortgage refinance. This allows you to potentially qualify for a lower rate or extend your loan term, both of which could lower your monthly payment. Keep in mind, though, that by extending your term, you’ll pay more in interest over the life of the loan.
• Shop for a lower homeowners insurance rate. Increasing your deductible, bundling policies, or making home improvements can lead to lower premiums, reducing your monthly mortgage payment.
The Takeaway
Using a Plano mortgage calculator helps you understand the financial implications of buying a home. It estimates monthly payments, total interest paid, and the overall cost of the mortgage. For a more comprehensive budget, consider your income, existing debts, and other financial variables to make informed decisions about how much house you can afford in Plano.
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 average mortgage amount in Plano varies based on the home price, down payment, and interest rate. In 2025, the median monthly mortgage payment in Plano was $3,180. To get a personalized estimate, use a mortgage calculator to factor in your specific financial details.
How does my credit score affect my mortgage loan interest rate?
Your credit score plays a significant role in determining your mortgage interest rate. A higher credit score can help you secure more favorable rates, reducing your monthly payments and the total interest paid over the life of the loan. To build your credit score, pay all bills on time, keep credit card balances low, maintain a mix of credit types, and avoid frequent credit inquiries.
What are principal and interest on a mortgage loan?
The principal is the portion of the payment that goes toward paying down the loan balance, while the interest is the fee charged by the lender for providing the loan. Understanding these components helps with budgeting and making informed decisions about your mortgage.
How much should I put down on a mortgage?
The amount you should put down on a mortgage depends on your financial situation and the type of loan you choose. A down payment of 20% is often recommended to avoid private mortgage insurance (PMI), but lower down payments are the most common, especially for first-time buyers. Use a down payment calculator to explore different scenarios and determine the best down payment amount that fits your budget and financial goals.
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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