Estimate your payment with our mortgage calculator

Understanding how much you can safely spend on a housing mortgage is the first smart move. The more you know about your monthly mortgage payment - and how it's calculated - the better your chances of making confident, informed decisions.

Let’s break it all down and show you how a mortgage calculator can help you budget for the home you deserve.

What’s Included in an Affordable Housing Mortgage Payment?

Most monthly mortgage payments are made up of multiple costs - not just your home loan.

Here's what typically goes into a payment for an affordable housing mortgage:

1. Principal

The amount you borrow from a lender to buy your home.

For example:

If your home costs $400,000 and you have $100,000 saved up for your down payment, you’ll need to borrow $300,000 to complete the purchase.

So,

• Home price: $400,000
• Down payment: $100,000

Mortgage principal: $300,000

2. Interest

Interest is the cost of borrowing. It’s a percentage of your loan (like 4.75%).

Several factors affect your mortgage rate:

• Credit Score: Higher scores = better rates

• Debt-to-Income Ratio (DTI): The lower your debt-to-income ratio, the better your interest rate. Ideally under 43%
  This is because lenders view a borrower’s stable financial situation as less of a credit risk. 

• Market Conditions: Treasury yields can impact fixed mortgage rates.

        For example,   the U.S. Treasury Department sells notes, among other products, to fund U.S. debt              (the 10-year Treasury yield is their most popular product). 

Looking for today’s best affordable housing mortgage rates in Texas, Colorado, or Florida? Contact Austin Capital Mortgage.

3. Loan Term

This is how long you agree to repay your mortgage.

Common terms: 15, 20, or 30 years

4. PMI (Private Mortgage Insurance)

If your down payment is under 20%, you’ll usually need PMI.
 

Typical cost: 0.2% - 2% of the loan amount per year.

You can cancel PMI after reaching 20% equity.

FHA loans don’t have PMI but come with other types of mortgage insurance-often more affordable.

5. Property Taxes

Your location and home’s value determine your property tax rate.
Check local websites or listings for exact figures.

6. Homeowners Insurance

It's usually required to get a mortgage. Plans with higher deductibles tend to have lower monthly premiums.

Use This Mortgage Calculator for Affordable Housing Mortgage Planning

Planning for your future home starts with knowing what you can afford.