Buying a home is a huge milestone—and a major investment. Whether you're a first-time homebuyer or relocating from out of state, knowing what to expect financially can help you plan ahead. So, how much money do you need to buy a house in Austin, Texas? Let’s break it down step by step.
1. What’s the Average Home Price in Austin?
As of mid-2025, the median home price in Austin is around $500,000. That number can vary widely depending on location. For example:
- Downtown condos or luxury homes: $700K–$1.5M+
- Suburban family homes (Round Rock, Pflugerville, Cedar Park): $375K–$500K
- East & South Austin starter homes: $450K–$600K
2. How Much Should You Save for a Down Payment?
The most common down payment amount is 20%, which avoids private mortgage insurance (PMI). But many buyers—especially first-timers—qualify for loans with as little as 3%–5% down. Here's what that looks like on a $500,000 home:
- 20% down: $100,000
- 5% down: $25,000
- 3% down: $15,000
Many buyers also use down payment assistance programs in Texas to help cover these costs—especially those relocating or buying their first home.
3. Closing Costs in Austin
In addition to the down payment, you’ll need to budget for closing costs. In Texas, these typically run 2%–5% of the purchase price. On a $500,000 home, that could mean an additional $10,000–$25,000.
Closing costs may include:
- Loan origination fees
- Appraisal and inspection fees
- Title insurance and escrow fees
- Property taxes and homeowner's insurance (first year upfront)
4. What Will Your Monthly Payment Look Like?
With interest rates now hovering between 5.99% and 6.27% (down from over 7% earlier this year), your monthly mortgage payment on a $500,000 home with 20% down looks like this:
- At 7.01% → $2,661/month
- At 6.19% → $2,436/month
- At 5.99% → $2,398/month
That’s a savings of up to $263/month—or over $94,000 across a 30-year loan! Not to mention, Texas has no state income tax, which helps with overall affordability.
5. Other Costs to Budget For
- Homeowners insurance: $100–$150/month
- Property taxes: 1.8%–2.5% of home value annually
- HOA fees: Vary widely depending on community
- Maintenance: Experts suggest budgeting 1% of the home’s value per year
So, How Much Should You Have Saved?
To buy a median-priced home in Austin today, you’ll want to have:
- Minimum: $25,000–$35,000 (for down payment + modest closing costs)
- Ideally: $50,000–$125,000+ if aiming for 20% down + full closing coverage
Final Thoughts
Buying in Austin is more attainable than you might think—especially with falling interest rates and flexible loan options. But every buyer’s situation is unique, and planning ahead makes all the difference.
Working with the best realtor in Austin ensures you’re not just finding a house, but making a smart investment in your future.
📱 Call or text Brendan Sanford at (512) 696-0673
📧 Email: [email protected]
Let’s chat about your goals and create a personalized home buying plan that gets you there.