Texas Mortgage Calculator
Estimate your monthly mortgage payment in Texas using local property tax rates, insurance costs, and current interest rates.
$
$20%
%
Monthly Payment
$2,208
$1,816 principal & interest
Principal & Interest: $1,816
Property Tax: $292
Insurance: $100
Loan Amount
$280,000
Total Interest
$373,787
Total Cost
$653,787
LTV Ratio
80.0%
Advanced
Advanced Calculator
Charts, scenario comparison, tax benefits, equity projection
Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Texas
Texas is the second-largest state by both area and population, and its housing market reflects that scale and diversity. With an average home price of $315,000 — well below the national median for major metros — Texas offers relative affordability compared to coastal states. Cities like Austin and Dallas have seen explosive price growth, while smaller cities like El Paso and Lubbock remain very affordable.
One major consideration for Texas buyers is property taxes. Without a state income tax, local governments lean on property levies to fund public services. Texas consistently ranks in the top 5 states for highest property tax rates, averaging 1.60% effective — making that line item a significant part of your monthly payment.
Key Housing Facts for Texas
- Average home price: $315,000
- Average effective property tax rate: 1.60%
- Average homeowners insurance: $3,500/year
- No state income tax
- Hottest markets: Austin, Dallas-Fort Worth, Houston
- More affordable markets: El Paso, Lubbock, Amarillo, Wichita Falls
Texas First-Time Homebuyer Programs
- My First Texas Home (MFTH): 30-year fixed-rate mortgages plus up to 5% down payment and closing cost assistance. Income and purchase price limits apply.
- Texas Mortgage Credit Certificate (MCC): Federal tax credit of up to 40% of annual mortgage interest paid, reducing federal income tax liability.
- TSAHC Home Sweet Texas: 3% or 5% grant or deferred loan for down payment and closing costs. No first-time buyer requirement for teachers, veterans, and police officers.
- Texas Bootstrap Loan Program: Self-help housing construction loans for very low-income rural homebuyers.
- Veterans Land Board (VLB): Land and home loans for Texas veterans at below-market rates.
Property Tax Rates by Major Texas County
| County | Effective Tax Rate | Median Home Value | Annual Tax (Median) |
|---|---|---|---|
| Harris (Houston) | 1.84% | $280,000 | $5,152 |
| Dallas | 1.89% | $320,000 | $6,048 |
| Tarrant (Fort Worth) | 1.73% | $310,000 | $5,363 |
| Travis (Austin) | 1.80% | $520,000 | $9,360 |
| Bexar (San Antonio) | 1.95% | $270,000 | $5,265 |
| Collin | 1.55% | $470,000 | $7,285 |
| El Paso | 1.47% | $185,000 | $2,720 |
| Lubbock | 1.75% | $185,000 | $3,238 |
Average Home Prices by Major Texas City
| City | Median Home Price |
|---|---|
| Austin | $520,000 |
| Dallas | $380,000 |
| Fort Worth | $310,000 |
| Houston | $280,000 |
| San Antonio | $270,000 |
| Plano | $470,000 |
| El Paso | $185,000 |
| Lubbock | $185,000 |
Frequently Asked Questions
Texas has no state income tax, so local governments rely heavily on property taxes to fund schools, roads, and public services. The average effective property tax rate is about 1.60% — more than double California's. On a $315,000 home, that's roughly $5,040 per year. Rates vary significantly by county and city.
The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program, which provides 30-year fixed-rate mortgages at below-market rates plus down payment and closing cost assistance of up to 5% of the loan amount. The Texas State Affordable Housing Corporation (TSAHC) also offers grants and loans for qualifying buyers.
Yes. Texas homeowners who use their property as a primary residence can claim a homestead exemption that reduces the taxable assessed value. The state school tax exemption is $100,000 off the appraised value for school district taxes. Additional exemptions exist for seniors (65+) and disabled veterans.
Yes. Texas has some of the highest homeowners insurance rates in the country due to hurricane, hail, tornado, and flooding risks. Average annual premiums run around $3,500, but can exceed $5,000 in coastal areas or places prone to severe weather. Flood insurance is typically purchased separately through the NFIP.
Texas closing costs typically run 2–3% of the loan amount. On a $315,000 home, expect $6,300–$9,450. Texas does not have a state transfer tax, which keeps costs somewhat lower than other states. However, title insurance rates are set by the state and tend to be higher than average.