Jessica Martinsen · Austin Real Estate
The price is one line in the Austin home-buying budget.
Understand the categories behind an Austin home purchase: payment, taxes, insurance, HOA costs, closing costs, maintenance, and cash reserves.
A useful Austin purchase budget has layers. The loan payment is only one piece; taxes, insurance, HOA dues, utilities, maintenance, closing costs, and the cash you want to keep after closing all change the decision.
Run a scenario with the Affordability and Mortgage tools, then ask a qualified lender and insurance professional to replace illustrative assumptions with current terms. Avoid treating a calculator result as approval or a guarantee.
For a specific property, compare the full payment, condition, insurance questions, tax records, HOA documents, and likely near-term repairs before deciding whether the list price fits the plan.
Plan for closing costs of roughly 2 to 5 percent of the purchase price on top of the down payment. That range covers lender fees, the appraisal, the survey (or a T-47 affidavit if the seller's survey is reusable), escrow fees, prepaid taxes and insurance, and title.
Property tax is the number that surprises people moving from income-tax states. Texas has no state income tax; schools, counties and cities are funded through property tax instead, and combined rates around Austin commonly land near 2 percent of assessed value depending on the parcel's taxing entities. On a homestead, Texas exempts $100,000 of assessed value from school taxes and caps annual assessed-value growth at 10 percent — but only after you file the homestead exemption, which is free.
Title insurance premiums in Texas are promulgated by the state: the policy costs the same at every title company, so compare escrow and courier fees rather than shopping the premium itself.
Texas contracts typically include an option period — an unrestricted right to terminate, bought for a negotiated fee and usually running about 5 to 10 days — and that window is when the inspection happens. Budget for the option fee, the inspection, and any specialist follow-ups it triggers.
All of these figures move: tax rates get set each fall, exemption rules change by legislation, and lender fees vary by loan. Treat the numbers here as the shape of the cost, and verify the exact figures for a specific address and loan before committing.
Common questions
- What costs should be included in an Austin home budget?
- Include principal and interest, taxes, insurance, HOA costs, utilities, maintenance, closing costs, moving, and post-closing reserves.
- Can an online mortgage calculator tell me what I qualify for?
- No. It is an illustrative scenario tool. A qualified lender must review the current borrower, loan program, rate, costs, and underwriting requirements.
- Why can two homes at the same price have different monthly costs?
- Taxes, insurance, HOA dues, loan structure, property type, condition, and location-specific costs can differ materially between addresses.
- Roughly how much should I budget for closing costs in Austin?
- A workable planning range is 2 to 5 percent of the purchase price on top of the down payment, covering lender fees, appraisal, survey, escrow, prepaids and title. Your lender's loan estimate replaces this range with real numbers once you apply.
- Why are Texas property taxes so high?
- Texas has no state income tax, so local services are funded through property tax. Around Austin the combined rate is commonly near 2 percent of assessed value. Filing the free homestead exemption on a primary residence removes $100,000 of assessed value from school taxes and caps annual assessment growth at 10 percent.
This page is a planning guide, not a market report. Confirm current prices, taxes, insurance and property facts against authoritative sources before acting on them.
Ask Jessica Martinsen about The price is one line in the Austin home-buying budget