How Much Home Can You Really Afford in Austin?
A Practical Guide to Budgeting, Down Payments, and Monthly Payments in Today’s Market
Buying a home in Austin is exciting — but it also comes with a lot of unknowns, especially when it comes to understanding how much you can comfortably afford. With prices shifting, interest rates fluctuating, and property taxes that vary dramatically by neighborhood, getting clear on your numbers is the smartest first step you can take.
Let’s break it down in a way that’s simple, realistic, and tailored for Austin homebuyers.
Start With a Realistic Budget
Your budget begins with three things:
Your down payment
Your monthly comfort zone
Your long-term financial goals
For most Austin buyers, the sweet spot is identifying a monthly payment that feels sustainable — not just today, but five years from now. Between mortgage principal, interest, taxes, insurance, and sometimes HOA dues, Austin buyers tend to underestimate the full picture. Taking a step back and defining your comfort level early gives you negotiating confidence later.
Estimate Your Monthly Payment Before You Shop
Instead of letting the list price drive your search, let your payment range guide you.
By running a quick calculation based on your down payment and today’s interest rates, you can get a solid sense of whether your price range should be closer to $400K, $650K, or $900K+.
This keeps you grounded and prevents emotional decisions — especially in a competitive Austin market where great homes can still attract multiple offers.
Plan for Closing Costs
Austin buyers often forget that closing costs can range from 2%–4% of the purchase price. These costs include prepaid taxes, lender fees, title fees, and escrow deposits. Planning for them now keeps you from scrambling later.
Build Your Personalized Affordability Plan
Every buyer’s financial situation is different. If you'd like a detailed breakdown — including three tailored scenarios (conservative, target, stretch) — I’d be happy to prepare a personalized analysis for your specific budget.