Estimate your monthly mortgage payment in Texas. Enter your home price, down payment, interest rate, and loan term to see principal & interest, property tax, insurance, and total PITI payment.
Texas has no state income tax but high property taxes averaging about 1.83% effective, partly because the state relies heavily on property taxes for school funding. The homestead exemption reduces taxable value by at least $100,000 for school district taxes (as of 2023). Texas voters approved a $18 billion property tax relief package in 2023.
| Cost Item | Texas Estimate |
|---|---|
| Median Home Price (2026) | $325,000 |
| 20% Down Payment | $65,000 |
| Loan Amount (80% LTV) | $260,000 |
| Avg. Property Tax Rate | 1.83% per year |
| Est. Monthly Property Tax | ~$495/month |
| Typical Homeowner Insurance | $1,000–$2,000/year |
Your monthly payment has several components. The principal and interest (P&I) payment is fixed for the life of a fixed-rate mortgage and is determined by your loan amount, interest rate, and term. Property taxes and insurance are typically escrowed — collected monthly by your lender and paid on your behalf.
If your down payment is less than 20%, you'll also pay Private Mortgage Insurance (PMI), which typically costs 0.5%–1.5% of the loan amount per year. PMI can often be removed once you reach 20% equity.
| Loan Type | Key Features |
|---|---|
| 30-Year Fixed | Lowest monthly payment; most popular; predictable payment for 30 years |
| 15-Year Fixed | Higher payment; pays off faster; significantly less total interest |
| FHA Loan | 3.5% down minimum; credit score 580+; requires mortgage insurance premium (MIP) |
| VA Loan | 0% down for eligible veterans; no PMI; competitive rates |
| USDA Loan | 0% down for rural eligible areas; income limits apply |
| Conventional | 20% down avoids PMI; competitive rates; flexible terms |
| Jumbo Loan | Loan amounts above conforming limit ($806,500 in 2026); stricter requirements |
| ARM (Adjustable) | Lower initial rate; rate adjusts after fixed period (e.g., 5/1, 7/1 ARM) |
The median home value in Texas is approximately $325,000 as of 2026. Prices vary widely by city, neighborhood, and market conditions. Use the calculator above to estimate your payment at any price point.
Texas has no state income tax but high property taxes averaging about 1.83% effective, partly because the state relies heavily on property taxes for school funding. The homestead exemption reduces taxable value by at least $100,000 for school district taxes (as of 2023). Texas voters approved a $18 billion property tax relief package in 2023.
A common guideline is that your monthly housing payment (PITI) should not exceed 28% of your gross monthly income. On a $325,000 home with 20% down at 6.75% for 30 years, the P&I payment is approximately $1,686/month. Adding taxes and insurance, you'd want a gross monthly income of at least $6,021 to stay within the 28% guideline.
Most conventional lenders in Texas require a minimum credit score of 620. FHA loans allow 580 with 3.5% down (or 500 with 10% down). VA and USDA loans have no official minimum but most lenders prefer 620+. A higher score (740+) qualifies you for the best rates, potentially saving tens of thousands over the loan's life.
Closing costs in Texas typically range from 2%–5% of the purchase price. These include lender fees (origination, underwriting), title insurance, appraisal, recording fees, prepaid items (first year of insurance, property tax escrow), and state-specific transfer taxes. On a $325,000 home, expect $9,750–$16,250 in closing costs.