Austin, Texas Mortgage Calculator

Austin home prices currently sit at a $440,000 median in late 2025, reflecting an 18% decrease from 2022 peaks. The metro area shows $443,995 median listings. Premium areas like Tarrytown and Westlake Hills command $1M-$2M+, while South Austin properties range $450K-$650K. Suburban options in Pflugerville ($380K), Leander ($400K), and Round Rock ($420K) provide more accessible entry points. Current market conditions heavily favor purchasers, with 25% more inventory available and widespread price reductions.

For Austin's $440,000 median pricing, households should earn $110,000-$130,000 yearly with 20% down payment ($88,000) following 28% front-end debt-to-income guidelines. Monthly obligations run $3,000-$3,300 covering principal, interest, 1.65% property tax, and insurance. Texas's zero state income tax provides more take-home pay versus high-tax states like California. Suburban markets like Pflugerville ($380K median) accommodate $95,000-$110,000 annual earners.

Travis County enforces roughly 1.65% combined property tax rates, among Texas's highest. A $440,000 property generates approximately $7,260 yearly in property taxes. Though exceeding national averages (0.99%), this balances against Texas's absence of state income taxation. Tax revenue supports educational systems, infrastructure development, and municipal operations. Homestead exemptions provide $100,000 school tax value reduction plus supplementary county/city exemptions, delivering $2,000+ annual savings.

Austin decisively favors buyers throughout 2025. Market signals include: unprecedented inventory levels (15,000-17,000 properties), extended market times, and substantial listing price cuts. Following 60%+ appreciation during 2020-2022, the market normalizes with enhanced buyer leverage and diminished bidding competition pressure.

Austin-area value leaders include Pflugerville ($380K median), Manor ($360K), Del Valle ($340K), and North Austin ($400K). Surrounding communities deliver excellent value: Leander ($400K), Round Rock ($420K), Cedar Park ($450K), Kyle ($390K). These locations feature quality schools, contemporary construction, and manageable downtown commutes. Rental markets average $1,398/month for one-bedroom units citywide, with North Austin ($1,200) and suburban areas ($900-$1,100) offering lower rates.

Austin leads Texas major cities in housing costs. The $440,000 median surpasses Dallas ($425K), Houston ($327K), and San Antonio ($310K). Austin compensates with distinctive benefits: robust technology sector (median household earnings $91,461), zero state income levies, dynamic cultural environment, and substantial long-term value growth. Affordability-focused buyers find superior value in Houston and San Antonio with comparable employment markets.

With a $70,000 annual salary, you can typically afford a home priced between $210,000-$280,000, assuming good credit, 20% down payment, and following the 28/36 debt rule. Use our calculator above for your exact situation.

Minimum credit scores vary by loan type: Conventional loans require 620+, FHA loans accept 580+ (or 500+ with 10% down), VA loans have no minimum but lenders typically want 620+, and USDA loans need 640+.

A 20% down payment eliminates PMI requirements, which typically costs 0.5-1% annually. However, many buyers purchase with less down. This is educational information - evaluate your specific situation and consult professionals.

Closing costs typically range from 2-5% of the home price. On a $300,000 house, expect $6,000-$15,000 in closing costs including appraisal, inspection, title insurance, and lender fees.

A fixed-rate mortgage has the same interest rate for the life of the loan, meaning your monthly principal and interest payments are stable. An adjustable-rate mortgage (ARM) has a rate that changes periodically, so your monthly payments could increase or decrease.

To improve your DTI ratio, you can either increase your income or decrease your debt. Consider strategies like paying down high-interest loans, avoiding new debt, and exploring opportunities to boost your earnings.

A home appraisal is a professional assessment of a property's value. It is important because lenders use it to ensure they are not lending more money than the property is worth. A low appraisal can impact your ability to secure a loan.

A 15-year mortgage typically has a lower interest rate and you will pay less interest over the life of the loan. However, the monthly payments are higher. A 30-year mortgage has lower monthly payments, but you will pay more in interest over time.