🏠 Texas Mortgage Calculator

Use this Texas mortgage calculator to estimate your monthly home loan payment, including principal, interest, property tax, homeowner’s insurance, PMI, and HOA fees. With a statewide median home price near $300,000 and no state income tax, Texas is one of the most popular destinations for homebuyers—but its above-average property tax rate of about 1.80% means your monthly escrow payment deserves careful attention.

Adjust the inputs below to compare different loan scenarios. Whether you’re looking at Dallas, Houston, San Antonio, Austin, or a smaller Texas community, this tool helps you budget accurately. Texas charges no real-estate transfer tax, which saves buyers a fee that can total thousands of dollars in other states. First-time buyers and veterans may qualify for TDHCA assistance programs that include down payment grants and mortgage credit certificates.

Texas Housing Market Overview

Texas offers one of the largest and most varied housing markets in the nation. The statewide median home price sits near $300,000, but prices range widely: central Austin can exceed $500,000, while cities such as San Antonio, El Paso, and Lubbock offer medians in the $230,000–$280,000 range. Suburban neighborhoods in the Dallas-Fort Worth metroplex and the Houston metro area typically fall between $280,000 and $380,000.

Strong job growth in technology, energy, healthcare, and defense continues to draw new residents. Texas gained more domestic migrants than any other state in recent years, keeping demand for housing robust even as new construction has ramped up significantly.

Property Taxes in Texas

Texas has no state income tax, but it funds local services through relatively high property taxes. The statewide effective rate averages about 1.80% of assessed value, making it one of the highest in the country. On a $300,000 home, that translates to roughly $5,400 per year, or $450 per month added to your escrow.

Rates vary by county and school district. Some areas in the Houston suburbs exceed 2.4%, while rural counties may come in under 1.5%. Texas offers several exemptions that can lower your bill:

  • Homestead exemption: At least $100,000 off the appraised value for your primary residence (school-district portion), plus additional local exemptions that vary by taxing entity.
  • Over-65 and disabled exemptions: An additional $10,000 or more off the school-district appraised value, plus a tax-freeze provision that caps your school taxes once you qualify.

Texas-Specific Mortgage Costs

Texas does not charge a real-estate transfer tax, which saves buyers and sellers a fee that can total thousands of dollars in other states. However, closing costs in Texas are still notable. Buyers typically pay 2%–4% of the purchase price, covering lender fees, title insurance, survey, appraisal, and prepaid escrow for taxes and insurance.

One unique aspect of Texas real-estate law is the requirement for a title-company-driven closing process. Attorneys are not mandatory at closing, but title companies handle escrow, title searches, and document recording. Title insurance premiums in Texas are set by the state Department of Insurance and are not negotiable, so the cost is consistent across providers.

Homeowner’s insurance in Texas averages $2,500–$3,500 per year—above the national average—due to exposure to hurricanes along the Gulf Coast, hailstorms in North Texas, and tornado risk across the central plains.

First-Time Homebuyer Programs in Texas

The Texas Department of Housing and Community Affairs (TDHCA) administers the My First Texas Home program and related assistance options:

  • My First Texas Home: A 30-year fixed-rate mortgage through participating lenders at a competitive interest rate, available to first-time buyers and veterans.
  • Down Payment Assistance (DPA): A grant or second lien of up to 5% of the loan amount to cover down payment and closing costs. Grant funds do not have to be repaid.
  • Mortgage Credit Certificate (MCC): A federal tax credit of up to $2,000 per year for the life of the loan, reducing your federal income tax liability and effectively lowering your monthly cost.

Eligibility depends on income limits, purchase-price limits, and credit score thresholds that vary by county. Veterans have expanded eligibility through the Texas Veterans Land Board (VLB) housing programs.

Tips for Texas Homebuyers

  • Don’t forget the property-tax impact. Texas’s high property tax rate can add $400–$600 per month to your payment. Use the Percentage Calculator to estimate the annual bill for any price point.
  • File your homestead exemption immediately. You must file with your county appraisal district to receive the exemption—it is not automatic. This can save $1,500 or more per year on school taxes alone.
  • Budget for higher insurance premiums. Request quotes from multiple carriers and consider a higher deductible for wind and hail coverage to manage costs.
  • Shop lenders aggressively. Texas’s unique home-equity lending rules (found in Article XVI, Section 50 of the Texas Constitution) can affect refinancing and cash-out options, so choose a lender familiar with Texas-specific regulations.
  • Leverage the no-income-tax advantage. Without state income tax, more of your paycheck goes toward housing. Use our Mortgage Calculator to see how different price points fit your take-home pay.

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Frequently Asked Questions

Why are property taxes so high in Texas?
Texas has no state income tax, so local governments rely heavily on property taxes to fund schools, roads, and services. The statewide effective rate averages about 1.80%, but some districts exceed 2.4%. Filing a homestead exemption can reduce your bill significantly.
Is there a transfer tax when buying a home in Texas?
No. Texas does not levy a real-estate transfer tax on buyers or sellers. This is one area where Texas closing costs are lower than in many other states.
What is the TDHCA My First Texas Home program?
It is a 30-year fixed-rate mortgage program offered through the Texas Department of Housing and Community Affairs. Eligible first-time buyers and veterans can receive a competitive rate plus down payment assistance of up to 5% of the loan amount.
How much are closing costs in Texas?
Buyers typically pay 2%–4% of the purchase price. On a $300,000 home, that means roughly $6,000–$12,000 covering lender fees, title insurance, survey, appraisal, and escrow prepayments.
Does Texas have a homestead exemption?
Yes. The general homestead exemption reduces the school-district taxable value by at least $100,000. Additional local exemptions vary by county and city. You must file with your county appraisal district to receive it.