Texas Mortgage Calculator – Estimate Your Monthly Home Loan Payment
Texas offers relatively affordable home prices compared to coastal states, but mortgage payments can still be high due to one major factor: property taxes.
This Texas mortgage calculator helps you estimate realistic monthly payments by factoring in loan terms, interest rates, and the unique cost structure of buying a home in Texas.
Texas Mortgage Calculator
Why Mortgage Payments in Texas Are Unique
Texas is one of the few states with no state income tax, but this is balanced by some of the highest property tax rates in the country.
Even though home prices are often lower than in states like California or New York, higher annual property taxes can significantly increase your total monthly housing cost.
Understanding this trade-off is essential when planning a long-term mortgage in Texas.
Texas Mortgage Examples
Example 1: A $350,000 home with 20% down and a 6.75% rate over 30 years may result in a principal-and-interest payment of around $1,820, but property taxes can add several hundred dollars per month.
Example 2: A shorter 15-year loan increases monthly payments but can reduce total interest dramatically, which is attractive for buyers with stable income.
Example 3: Buyers often underestimate property taxes when comparing Texas homes to other states. This calculator helps prevent that mistake.
15-Year vs 30-Year Mortgage in Texas
| Factor | 15-Year Loan | 30-Year Loan |
|---|---|---|
| Monthly Payment | Higher | Lower |
| Total Interest | Much lower | Much higher |
| Best For | Fast equity build | Cash-flow flexibility |
Refinancing a Mortgage in Texas
Many Texas homeowners refinance to reduce interest rates or change loan terms after building equity.
Use the Refinance Calculator or explore the Texas Refinance Calculator to compare scenarios.
Common Texas Homebuyer Mistakes
- Ignoring property tax impact on monthly payment
- Buying based only on lender approval limits
- Choosing longer loan terms without evaluating interest cost
- Underestimating insurance and maintenance expenses
Frequently Asked Questions – Texas Mortgage
Why are property taxes so high in Texas?
Texas does not charge a state income tax. To fund local governments and schools, property taxes are higher compared to many other states. This directly affects monthly mortgage costs.
Does this Texas mortgage calculator include property taxes?
Yes. You can manually enter an estimated property tax percentage to see a more realistic monthly payment instead of relying only on principal and interest.
What is the average mortgage term in Texas?
Most Texas buyers choose a 30-year mortgage for affordability, but 15-year loans are common among buyers with stable income who want to reduce long-term interest.
Do Texas homebuyers need private mortgage insurance (PMI)?
PMI may be required if your down payment is less than 20%. The requirement depends on lender guidelines and loan type.
Is refinancing common in Texas?
Yes. Many homeowners refinance to lower interest rates, change loan terms, or access home equity, especially when rates drop.
Are mortgage payments the same across Texas?
No. Payments vary by county and city due to differences in home prices and local property tax rates. This calculator provides an estimate, not a final quote.
Does this calculator include homeowners insurance?
You can enter an estimated annual insurance amount to include it in your monthly calculation. Actual insurance costs vary by location and risk factors.
Is this calculator accurate for jumbo loans?
The calculator provides estimates for jumbo loans as well, but jumbo mortgage rates and requirements can differ significantly from standard loans.
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Disclaimer
This calculator provides estimates for educational purposes only and does not constitute financial, legal, or tax advice.