Texas Mortgage Calculator

Calculate your monthly mortgage payment in Texas. Average home price: $295,000 · Property tax rate: 1.6% · Median household income: $67,321.

Calculate Your Texas Mortgage Payment

Home Price ($)

Down Payment ($)

Interest Rate (%)

Loan Term (Years)

Property Tax Rate (%)

Annual Insurance ($)

HOA Monthly ($)

Loan Type

Texas Housing Market Overview

$295,000

Avg Home Price

1.6%

Property Tax Rate

$3,200

Annual Insurance

6.7%

Avg Mortgage Rate

The average home price in Texas is $295,000, with a property tax rate of 1.6%. With 20% down at 6.7%, your estimated monthly payment would be approximately $2,183/month including principal, interest, taxes, and insurance (PITI).

Texas's median household income is $67,321, making the average home roughly 4.4x the median annual income. Financial advisors generally recommend a home price no more than 3-4x your annual income.

How Mortgage Payments Work in Texas

Your monthly mortgage payment in Texas consists of four components (PITI):

Principal: The portion that reduces your loan balance. Starts small and grows over time.
Interest: The cost of borrowing. At 6.7%, you'll pay significant interest in the early years.
Taxes: Texas's property tax rate of 1.6% means approximately $393/month on the average home.
Insurance: Homeowners insurance in Texas averages $3,200/year ($267/month).

If your down payment is less than 20%, you'll also pay Private Mortgage Insurance (PMI), typically 0.5-1% of the loan annually. FHA loans require mortgage insurance for the life of the loan.

Tips for Texas Home Buyers

Get pre-approved: Know exactly how much you can afford before shopping in Texas.
Compare rates: Even a 0.25% rate difference saves thousands over 30 years on a $295,000 home.
Consider property taxes: Texas's 1.6% rate can vary significantly by county — research your target area.
Shop insurance: Texas homeowners insurance averages $3,200/year, but rates vary. Get 3-5 quotes.
Budget for closing costs: Expect 2-5% of the purchase price ($5,900-$14,750) in closing costs.
Build an emergency fund: Set aside 3-6 months of mortgage payments ($6,549-$13,097) for emergencies.

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Frequently Asked Questions

What is the average mortgage payment in Texas?

Based on the average home price of $295,000 with 20% down at 6.7%, the typical monthly payment in Texas is approximately $2,183, including principal, interest, property taxes (1.6%), and homeowners insurance ($3,200/year).

What is the property tax rate in Texas?

Texas's effective property tax rate is approximately 1.6%. On a $295,000 home, that's about $4,720/year or $393/month. Property tax rates can vary by county within Texas.

How much do I need for a down payment on a home in Texas?

For a conventional loan, 20% down on the average Texas home ($295,000) would be $59,000. FHA loans require as little as 3.5% ($10,325), and VA loans offer 0% down for eligible veterans. Lower down payments mean higher monthly payments and PMI.

What credit score do I need for a mortgage in Texas?

Conventional loans typically require 620+, FHA loans 580+ (for 3.5% down) or 500+ (for 10% down), and VA loans have no minimum but lenders typically prefer 620+. Higher scores get better rates — a 760+ score in Texas could save you 0.5-1% on your rate.

Should I get a 15-year or 30-year mortgage in Texas?

A 30-year mortgage offers lower monthly payments but more total interest. A 15-year mortgage has higher payments but saves significantly on interest. On a $236,000 loan at 6.7%, you'd save approximately $118,590 in total interest with a 15-year term.

How much house can I afford in Texas?

With Texas's median household income of $67,321, following the 28% rule (housing should be ≤28% of gross income), you could afford approximately $1,571/month for housing. That supports a home price of roughly $235,624-$269,284 depending on rates, taxes, and insurance.