Texas Mortgage Calculator
Estimate your monthly payment with Texas property tax rates pre-loaded.
Mortgage Details
$80,000
Extra Payments — optional, reduces interest & payoff time
Texas Property Tax Warning
Texas has no state income tax but property taxes average 1.60% — one of the highest rates in the US. On a $340,000 home that's roughly $453/month added to your mortgage payment. Make sure you include taxes in your estimate or you'll significantly underestimate your true monthly cost.
Home Prices in Texas
Texas has one of the largest and most diverse housing markets in the country. Austin saw dramatic price appreciation through 2022 and has since cooled, while Dallas, Houston, and San Antonio remain relatively affordable for their size. Texas has no state income tax, which attracts significant relocation from higher-tax states.
Major markets include Houston, Dallas, Austin, San Antonio, Fort Worth. Monthly P&I estimates at 7%, 30-year fixed with 20% down:
| Home Price | Loan Amount | Est. Monthly P&I |
|---|---|---|
| $272,000 | $217,600 | ~$1,448 |
| $340,000 | $272,000 | ~$1,810 |
| $425,000 | $340,000 | ~$2,262 |
Assumes 20% down, 30-year fixed at 7%, P&I only. Add taxes and insurance for full payment.
Property Taxes in Texas
Texas has one of the highest property tax rates in the country at around 1.60% — nearly 50% above the national average of 1.1%. This meaningfully increases monthly payments compared to neighboring states, making it especially important to include taxes in your mortgage estimate.
On a $340,000 home at 1.6%, that's roughly $453/month in property taxes, collected in escrow by your lender. At the national average of 1.1%, the same home would cost $312/month — a meaningful difference over the life of the loan.
The calculator above uses 1.6% as a starting point. Update it with your specific county rate for a more accurate estimate. Your lender will verify the exact rate during underwriting.
Reading Your TX Mortgage Payment Breakdown
The calculator breaks your total monthly payment into four components:
- Principal & Interest — the base loan payment, calculated using the standard amortization formula.
- Property Tax — at Texas's 1.6% average, collected monthly in escrow by your lender.
- Home Insurance — estimated at $1,900/year ($158/month) for Texas. Your actual cost depends on location, coverage, and your insurer.
- PMI — required if your down payment is under 20%. Typically 0.5–1.5% of the loan per year, cancellable once you reach 20% equity.
Scroll below the payment summary to see the full amortization schedule — every monthly payment shown with principal, interest, and remaining balance.
First-Time Homebuyer Programs in Texas
Texas offers first-time homebuyer support through the My First Texas Home Program. This program typically provides:
- Competitive fixed-rate mortgage financing
- Down payment assistance for eligible buyers
- Available for FHA, VA, USDA, and conventional loans (varies by program)
- Income and purchase price limits apply
For current eligibility requirements, income limits, and participating lenders, visit www.tdhca.state.tx.us/homeownership/fthb.
Use the calculator above to estimate your full monthly payment before applying. Knowing your number makes it easier to compare programs and evaluate affordability.
Frequently Asked Questions
What is the average property tax rate in Texas?
The average effective property tax rate in Texas is approximately 1.6% of assessed home value per year. Texas has one of the highest property tax rates in the country at around 1.60% — nearly 50% above the national average of 1.1%. This meaningfully increases monthly payments compared to neighboring states, making it especially important to include taxes in your mortgage estimate.
What is the average home price in Texas?
Texas has one of the largest and most diverse housing markets in the country. Austin saw dramatic price appreciation through 2022 and has since cooled, while Dallas, Houston, and San Antonio remain relatively affordable for their size. Texas has no state income tax, which attracts significant relocation from higher-tax states.
Does Texas have good mortgage rates?
Mortgage rates in Texas are generally in line with national averages since they're primarily driven by federal monetary policy and secondary mortgage markets. Borrowers with strong credit (740+) and a 20% down payment typically qualify for rates at or near the national average. Shopping multiple lenders — including local credit unions and regional banks — can result in meaningfully lower rates.
What first-time homebuyer programs are available in Texas?
Texas offers homebuyer support through the My First Texas Home Program. Income and purchase price limits apply. Visit www.tdhca.state.tx.us/homeownership/fthb for current program details.
How is a mortgage payment calculated in Texas?
A Texas mortgage payment includes principal and interest (via the standard amortization formula), property tax escrowed monthly at roughly 1.6% of home value annually, homeowner's insurance, and PMI if your down payment is below 20%. The calculator above has TX-specific defaults pre-loaded.
Related Calculators & Guides
- Mortgage Calculator — standard mortgage calculator with full amortization
- Biweekly Mortgage Calculator — see how biweekly payments cut your loan term
- How to Pay Off Your Mortgage Early — 7 Proven Strategies
- North Carolina Mortgage Calculator — NC tax rates pre-loaded (0.77%)
- South Carolina Mortgage Calculator — SC tax rates pre-loaded (0.57%)
- Georgia Mortgage Calculator — GA tax rates pre-loaded (0.92%)
- Florida Mortgage Calculator — FL tax rates pre-loaded (0.89%)
- Virginia Mortgage Calculator — VA tax rates pre-loaded (0.82%)
Results are estimates based on the information you enter. Property tax rates and home prices are approximate and may not reflect current local conditions. FinWiser uses standard amortization formulas. This is not financial advice.