FinanceCalc

Texas Mortgage Calculator

Calculate your Texas mortgage payment with accurate TX property tax rates. See median home prices and closing costs for Texas.

Loan Details

?The purchase price of the home you're considering buying.
?The amount you plan to pay upfront when purchasing the home.
?The annual interest rate on your mortgage loan.
?The length of your mortgage in years. Common terms are 15 or 30 years.
?The annual property tax rate as a percentage of home value.
?Annual homeowners insurance premium.
?Monthly homeowners association (HOA) fees, if applicable.
End of inputs

Results

Monthly Payment
$2,284.08

Total / month

Loan Amount
$270,000.00

After down payment

Total Interest
$344,372.91

Over 30 years

Monthly Payment Breakdown
Amortization Schedule
Payment Schedule
MonthPrincipalInterestBalance

360 months · Showing 0 rows

Key Insights
Over the life of this loan you'll pay $344,372.91 in interest — more than the principal itself. A shorter loan term or biweekly payments could dramatically reduce this cost.
Making one extra payment per year (about $142.22/month) could save approximately $78,218.25 in interest and pay off your loan 5.8 years earlier.
Your interest rate of 6.50% is in line with recent market averages. Shopping around with at least three lenders could still save you thousands over the life of the loan.
Your down payment of 20% or more means you avoid Private Mortgage Insurance (PMI) entirely — a saving of hundreds of dollars per month.
Your down payment of 22.86% is strong, giving you immediate equity in your home and helping you secure better loan terms.

Texas Housing Facts

Median Home Price
$350,000
Average Property Tax Rate
1.58%
Annual Tax on Median Home
$5,530
State Income Tax
None (no state income tax)
Homebuyer Programs
TSAHC My First Texas Home + DPA
Property Tax Relief
Homestead exemption (school district)

How to Use This State Mortgage Calculator

  1. 1The calculator opens pre-filled with your state's median home price and average property tax rate. Adjust the Home Price slider to match the listing you are considering.
  2. 2Set your down payment. Toggle between a dollar amount and a percentage of the home price; a 20% down payment avoids PMI entirely.
  3. 3Enter the interest rate quoted by your lender. The default reflects a recent market average, but your rate depends on your credit score, loan type, and down payment.
  4. 4Review the Property Tax Rate slider — it starts at your state's average, but your actual rate depends on your county and any homestead exemptions you qualify for.
  5. 5Add annual home insurance and monthly HOA fees if applicable, then review the monthly payment breakdown, amortization chart, and AI-powered insights.

How Your Monthly Payment Is Calculated

The monthly principal-and-interest payment uses the standard amortization formula:

M = P × [r(1+r)^n] / [(1+r)^n − 1]

Where:
- M = monthly payment (principal + interest)
- P = loan amount (home price minus down payment)
- r = monthly interest rate (annual rate ÷ 12)
- n = total number of payments (years × 12)

Your total monthly housing payment (PITI) adds monthly property tax, home insurance, HOA fees, and PMI (if your down payment is under 20%). Property tax uses the rate entered for your state applied to the home price, divided by 12.

Key Mortgage Terms

Texas Mortgage FAQ

What is the median home price in Texas?

Texas median home prices near $350,000 are below the national median, but rapid population growth in Austin, Dallas, and Houston has pushed prices up sharply in recent years. This calculator uses $350,000 as the default home price so you can see a typical monthly payment in Texas.

What is the average property tax rate in Texas?

The average effective property tax rate in Texas is about 1.58%. Texas has no state income tax, so local governments rely heavily on property taxes, pushing the average effective rate to about 1.58%, well above the national average. A homestead exemption reduces the taxable value of a primary residence (a school-district exemption of $25,000 plus any local optional exemptions); over-65 and disabled exemptions add further relief. The calculator applies 1.58% by default, but your actual rate depends on your county and assessed value.

What homebuyer assistance programs are available in Texas?

The Texas State Affordable Housing Corporation (TSAHC) offers My First Texas Home loans with down payment assistance grants, and the Texas Department of Housing and Community Affairs (TDHCA) provides My Choice Texas Home programs. Veterans can use the VLB Texas Vet Loan.

Does Texas offer a homestead exemption or property tax relief?

Texas has no state income tax, so local governments rely heavily on property taxes, pushing the average effective rate to about 1.58%, well above the national average. A homestead exemption reduces the taxable value of a primary residence (a school-district exemption of $25,000 plus any local optional exemptions); over-65 and disabled exemptions add further relief. Check with your county assessor to confirm which exemptions apply to your property.

What closing costs should I expect when buying a home in Texas?

Closing costs in Texas typically run 1%-1.5% of the price. Texas is an attorney-optional state, and title insurance rates are regulated, so expect title premiums to be predictable but non-trivial.

How does Texas's tax structure affect my overall housing costs?

With no state income tax, Texas compensates through higher property taxes (about 1.58% effective) and sales tax. Budgeting for the higher property tax is essential when calculating PITI. With an average property tax rate of 1.58% and a median home price near $350,000, your total monthly housing cost includes principal, interest, taxes, and insurance (PITI).

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