One of the first questions almost every buyer asks is:
“Okay… but how much can I really afford each month?”
There’s usually a gap between the payment a lender says you qualify for and the payment that actually feels comfortable in your real life. Your true affordability usually lands somewhere in the middle — and that’s perfectly normal.
A Simple Way to Estimate Affordability
A good rule of thumb is to keep your total monthly housing expense — that includes your mortgage, taxes, insurance, and any HOA — at 30% to 36% of your gross monthly income.
This isn’t a hard rule, but it’s a solid starting point for most buyers here in Texas.
What Impacts How Much Home You Can Afford?
Your Down Payment
The more you put down, the lower your monthly payment — and sometimes the better your interest rate.
Your Interest Rate
Even a small rate change (like 0.125%–0.25%) can make a noticeable difference in your monthly cost.
Your Current Debt
Student loans, car payments, and credit cards all influence how much a lender will approve.
Where You're Buying
Texas property taxes are no joke — and they vary a LOT by county and neighborhood. The same-priced home can have very different monthly payments just based on its tax rate.
Why Lenders Often Approve More Than What Feels Comfortable
Lenders use formulas and ratios — not your lifestyle.
They don’t know:
How much you spend on travel
- What you pay for childcare
- How aggressively you want to save
- Whether you love going out to eat three times a week
- Or that your teenager thinks you’re funding their entire social life
Only you know what monthly payment allows you to breathe, save, and still enjoy your life.
The right mortgage payment isn’t the highest amount you qualify for…
It’s the number that lets you sleep well at night while still living the life you want.
If you want help running real numbers based on your budget, income, and the Austin market, I’m always here to break it down in plain English.
For a full breakdown of every home loan option, visit my Texas Mortgage Loan Guide
