The price on the listing is only part of what a home costs each month. Before you set a budget, it helps to see every piece of the payment and which ones you can change. Here is how the monthly number is built, using the same inputs as the payment calculator on our home page.
Principal and interest
This is the loan itself. It is set by three things: how much you borrow, your interest rate and the length of the loan. A larger down payment lowers the amount you borrow. A shorter term, such as 15 years instead of 30, raises the monthly payment but pays the loan off sooner. Your lender sets the rate based on the market and your own situation.
Property tax
Texas has no state income tax, and property taxes carry more of the load. The amount depends on where the home sits, because each address falls under its own set of taxing authorities. Two similar homes a few miles apart can have different tax bills. Ask for the actual tax figures on any home you are serious about instead of relying on an average.
Homeowners insurance
Mortgage lenders require it, and the cost varies with the home and the coverage you choose. Get a quote early in the process so it is not a surprise at closing.
HOA dues
Many condos and some neighborhoods carry association dues. On a condo the dues can be a significant part of the monthly cost, so always add them to the comparison when you are looking at a condo next to a house.
See it move in real time
The calculator on our home page lets you adjust home price, down payment, loan term, interest rate, property tax, insurance and HOA and watch the monthly estimate change. It is a planning tool. Actual costs vary by lender, credit and location, and your lender will give you the real numbers.
What to do next
Once you know the monthly number you are comfortable with, we can show you what it buys in the parts of Austin you are considering. Search homes for sale, or tell us what you are looking for and we will be in touch within the day. You can also call (512) 785-7489.