Question 1

How is my monthly mortgage payment calculated?

Accepted Answer

A full monthly payment (PITI) has four parts: principal and interest on the loan, property taxes, homeowners insurance, and — if you put less than 20% down on a conventional loan — private mortgage insurance (PMI). HOA dues, if any, are added on top. Our calculator estimates all of these for Texas.

Question 2

What interest rate should I use in the calculator?

Accepted Answer

We pre-fill the 30-year FHA average rate of the day from Mortgage News Daily so your estimate starts realistic. Your actual rate depends on credit score, loan type (FHA, conventional, VA, jumbo, non-QM), down payment, and which wholesale lender wins your loan. Brokers like Modern Mortgage shop 100+ lenders, which often beats a single retail bank quote.

Question 3

Why is 3.5% down the default?

Accepted Answer

FHA loans allow as little as 3.5% down with a 580+ credit score, which is the most common low-down-payment program in Texas. Conventional loans can go as low as 3% for first-time buyers, and VA loans can be 0% down for eligible veterans. You can change the down payment to match your situation.

Question 4

How accurate is the property tax estimate?

Accepted Answer

Texas has no state income tax, so property tax rates run higher than the national average — roughly 1.8% to 2.2% of the home's value per year depending on county and city. We default to 2.0% as a reasonable Texas-wide starting point. Your real rate depends on your specific taxing jurisdictions and any homestead exemption.

Question 5

When do I have to pay PMI?

Accepted Answer

On a conventional loan, PMI is generally required when your loan-to-value (LTV) is above 80% — i.e., less than 20% down. The calculator automatically adds an estimated PMI line when your down payment is under 20%. FHA loans use a different structure called MIP, which most borrowers carry for the life of the loan unless they refinance.

Question 6

Does the calculator include closing costs?

Accepted Answer

No — the monthly payment estimate doesn't include one-time closing costs (title, appraisal, lender fees, prepaid taxes/insurance). Closing costs in Texas typically run 2%–5% of the loan amount. When you get a quote from Modern Mortgage, we provide a full Loan Estimate that breaks down every dollar.

Question 7

Will using a mortgage broker actually save me money?

Accepted Answer

Usually, yes. A broker has access to wholesale pricing across 100+ lenders, while a retail bank can only offer its own products. More lenders competing for your loan usually means a lower rate, more program options, and a higher chance of approval — especially for self-employed borrowers, jumbo loans, and non-QM scenarios.

Question 8

Does running the calculator affect my credit?

Accepted Answer

No. The calculator is just math — no application is submitted and no credit is pulled. Even our 60-second qualifier is a soft check; we only run a hard credit pull once you decide to move forward with a real quote.

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