Texas Mortgage Calculator

Using this Texas mortgage calculator

This free Texas mortgage calculator is pre-set with a representative Texas price of about $340,000 and the state's roughly 1.68% property-tax rate, so a realistic Texas estimate appears the moment the page loads. Change the price to your target home, and the payment, principal-and-interest split, and escrow update instantly. Everything runs in your browser, so nothing you type about a Houston or San Antonio purchase is sent anywhere.

Notice the rate field is not pre-filled with a Texas average, because there is no single Texas rate: it depends on your credit, loan type, down payment and lender. Drop in a rate from a real quote or preapproval and the $340,000-home estimate becomes one you can actually plan around, complete with the $476-a-month tax escrow that Texas adds to principal and interest.

What a Texas payment looks like (PITI)

A Texas payment has four parts, together called PITI. Take the representative $340,000 Texas home with 20% down: the loan is about $272,000, principal and interest at a sample 6.5% over 30 years runs roughly $1,719 a month, and Texas's property tax adds about $476 more through escrow before homeowners insurance. Put together, that is the number your servicer collects.

The tax and insurance pieces are set by where in Texas you buy, not by your lender, so two buyers with the same $272,000 loan can owe very different totals, Houston versus a rural county, for example. The calculator above separates the pieces so you can see how much of your Texas payment builds equity versus covers carrying costs.

Home prices across Texas

A typical Texas home sits in the $320,000 to $360,000 range, but the state is not one market: Houston, San Antonio and Dallas usually run above the midpoint while smaller Texas counties fall below it. The Texas equation is unusual: no state income tax and often lower home prices pull the payment down, while high property taxes push the monthly escrow up, so buyers should always run the numbers with the local tax rate rather than a national average.

Because price sets your loan size, your down payment and your $5,712-a-year tax bill all at once, it pays to model your actual Texas target rather than a statewide average. Try the calculator at a Houston price and again at a Fort Worth or small-town price to see how far the same income stretches across Texas, the monthly gap is often larger than buyers expect, and it compounds into real money over a 30-year loan.

Texas property tax rates and your escrow

Texas has no state income tax, and it funds local services heavily through property taxes, so its effective property-tax rate is among the highest in the country. A generous homestead exemption and a 10% annual cap on assessed-value increases for homesteaded properties soften the impact for owner-occupants. At Texas's roughly 1.68% effective rate, a $340,000 home carries about $5,712 a year in property tax, or $476 a month added to your Texas payment through escrow.

No two Texas counties tax exactly alike, so enter the rate for the specific Texas jurisdiction you are buying in rather than the statewide figure. Two Texas homes at the same $340,000 price in different districts can carry meaningfully different bills, and the lower-tax one is genuinely cheaper to own even at an identical sticker price. The calculator's tax field lets you test the real local number.

Texas conforming and FHA loan limits (2026)

For 2026, virtually every Texas county uses the national baseline: a $832,750 one-unit conforming limit and a $541,287 FHA floor. A Texas loan above $832,750 becomes a jumbo loan with tighter requirements.

A handful of fast-growing metro counties in the Austin area carry limits slightly above the floor, but Texas has no counties at the national high-cost ceiling, so most buyers work from the baseline figure. With a representative Texas price near $340,000, the typical buyer has roughly $492,750 of headroom under the conforming limit, so most Texas purchases finance conventionally without touching jumbo rules.

Staying at or under the $832,750 conforming limit usually earns the best conventional pricing in Texas, while the FHA figure caps a low-down-payment loan. If your Houston or San Antonio target pushes past these limits, weigh a conventional loan against jumbo and FHA options first.

How Texas compares with neighboring states

Buyers near Texas's borders often weigh it against Oklahoma, Arkansas, Louisiana and New Mexico. What differs most is rarely the mortgage itself, it is the local carrying costs: Texas's roughly 1.68% property-tax rate, its lack of a state income tax, and its transfer-tax treatment all shift the true cost of ownership versus a home just across the line in Oklahoma or Arkansas.

If you are choosing between Houston and a metro in Oklahoma, price both in the calculator with each state's own tax rate and an insurance quote, the $1,719-a-month principal and interest may be similar, but the escrow and closing costs can tip the decision. The same loan looks different once Texas's local rules are applied.

Jumbo loans in Texas

A Texas home financed above $832,750 (or above the high-cost limit where it applies) needs a jumbo loan. Jumbos are not backed by Fannie Mae or Freddie Mac, so Texas lenders set stricter terms: a higher credit score, often 10% to 20%+ down, documented reserves and a lower DTI. At Texas's price levels, most buyers stay under the limit, so jumbo loans mainly affect the state's higher-end purchases.

One bright spot: jumbo pricing is competitive now. In the calculator, compare a Texas jumbo scenario against a "buy just under $832,750" scenario to see whether a larger down payment keeps you in conforming territory and lowers your cost.

A closer look at Texas's major metros

Texas's housing market is really the sum of its metros, and each shapes a payment differently:

• Houston anchors the top of the Texas market and usually sets the pace on price and competition.
• San Antonio offers a second major Texas metro, often with a different price and tax profile than Houston.
• Dallas gives Texas buyers another established market to weigh.
• Austin and Fort Worth round out the state's larger markets, frequently more affordable than Houston.

Because each Texas metro carries its own tax rate and insurance cost, the $340,000 representative figure is only a starting point, price the specific Texas city and neighborhood you are targeting to get a payment you can rely on.

Timing and locking your Texas rate

Once your Texas offer is accepted, you will lock your rate for a set window, commonly 30 to 60 days, to protect the quote through closing. On the $272,000 Texas loan, even a small rate move changes the $1,719 monthly figure, so locking removes that uncertainty while your file is underwritten.

Confirm the lock period fits your Texas closing timeline, since a lock that expires before closing can mean re-locking at a worse rate. Use the calculator to re-check your Texas payment at the locked rate and the real tax and insurance figures, so the number you commit to is the number you carry.

Property-tax relief in Texas

Because tax is a big slice of a Texas payment, roughly $476 a month on a $340,000 home, the relief programs that cut it matter. Texas offers a substantial general homestead exemption that removes a large slice of a home's value from school-district taxation for owner-occupants, plus additional exemptions for homeowners who are 65 or older or disabled, and a 10% annual cap on how fast a homestead's taxable value can rise.

Beyond those, Texas owners can challenge an over-assessment: when the assessed value exceeds what nearby comparable homes have sold for, an appeal can cut your taxable value and escrow. Claim every Texas exemption as soon as you buy (some are not automatic) and recheck your assessment yearly, trimming the tax bill moves the only piece of a fixed-rate Texas payment still in your control post-closing.

Conventional, FHA, VA or ARM for Texas buyers

The right loan for a Texas purchase depends on your down payment, credit and how long you will stay:

• Conventional — best pricing at or under $832,750 with 5%+ down; PMI ends at 20% equity.
• FHA — 3.5% down (about $11,900 here) and flexible credit for first-time Texas buyers.
• VA — zero down and no monthly mortgage insurance for eligible Texas veterans and service members.
• ARM — a lower intro rate if you will move or refinance within a few years.

Run the numbers on each option: a headline-low rate on one product can lose to another once Texas mortgage insurance or a shorter fixed period is counted.

Discount points and buydowns on a Texas loan

Most Texas rate quotes offer discount points, an upfront fee, one point is 1% of the loan, that buys down your rate. On the representative $272,000 Texas loan, a single point costs about $2,720, and it only pays off if you keep the loan past the break-even point where the monthly savings overtake that cost, usually several years out.

Some Texas builders and sellers instead fund a temporary buydown (like a 2-1) that lowers the rate for the first year or two before it steps up. That eases the early months on a $340,000 Texas purchase but does not cut the long-run cost. Run the calculator at the with-points and no-points rate, then weigh the $2,720 against how long you truly plan to stay in the home.

New construction and condos in Texas

Beyond existing homes, many Texas buyers consider new construction or a condo, and each adds wrinkles to the $340,000 math above. New-build Texas purchases may involve builder financing incentives, a longer closing, and property taxes that reset to the completed value, so the first full-year tax bill can exceed the estimate based on land alone.

Texas condos add monthly HOA dues on top of PITI, and lenders check that the project is warrantable before approving a conventional or FHA loan. Both are common in Houston and San Antonio. Use the calculator's HOA field to fold dues into the payment, and confirm the Texas property-tax basis for a new build so the escrow you plan for matches what actually arrives.

Texas refinance and home-equity options

Owning in Texas opens more moves as rates shift or equity grows. A refinance can cut your rate or payment; a cash-out refinance, home equity loan or HELOC turns Texas equity into cash for improvements or debt payoff.

And if you put a lump sum toward the $272,000 balance, a recast can lower your Texas payment while keeping the rate you locked, valuable if that rate is one you would not want to give up. Bookmark this page and revisit these tools as your Texas situation changes; the same private, browser-only math powers each one.

Texas's biggest housing markets

Most of Texas's price data is driven by Houston, San Antonio, Dallas, Austin and Fort Worth. Houston anchors the top of the Texas market, San Antonio and Dallas follow, and Austin and Fort Worth round out the major metros, each with its own tax rate, insurance cost and price level. A payment that works in one can be a stretch in another.

In any of these Texas markets, the method is the same: a real rate quote, the local tax rate, and an insurance quote, entered into the calculator for the full monthly number. That is how you compare Houston against Fort Worth on equal footing instead of trusting a single "average Texas price."

Fixed vs adjustable rates for Texas buyers

A fixed-rate loan locks your Texas principal and interest for the full term, the safe default if you plan to stay. An ARM carries a discounted rate for an intro period of five to ten years, then floats, which can suit a Texas buyer who expects to move or refinance before the fixed period ends.

On the $272,000 Texas loan, even a small rate difference moves the $1,719 monthly figure noticeably, so the ARM's early savings are real, but so is the risk if you stay past the adjustment. Use our ARM calculator to see both the intro and worst-case adjusted payment, then compare against a fixed quote here. For Texas buyers it comes down to how long you hold the loan, not the state.

Down payment assistance in Texas

Texas buyers do not have to save the whole $68,000 on their own. Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC) runs programs built to lower the cash you bring to closing. TDHCA's My First Texas Home and My Choice Texas Home programs bundle a competitive first mortgage with down-payment and closing-cost assistance, and the Texas Mortgage Credit Certificate returns part of your mortgage interest as a federal tax credit. TSAHC runs the Homes for Texas Heroes and Home Sweet Texas programs for teachers, first responders, veterans and moderate-income buyers.

Most layer a down-payment or closing-cost loan on top of a standard first mortgage, targeting first-time Texas buyers (typically those who have not owned in three years) under income and price caps. Price your first mortgage here, then ask a participating Texas lender how a specific program changes your cash to close, on a $340,000 purchase, assistance can turn a $68,000 barrier into a few thousand dollars, and the income caps are often higher than buyers assume.

Homeowners insurance in Texas

Every Texas lender requires homeowners insurance, and the premium is the second escrow add-on after the $476-a-month property tax. Texas premiums reflect hail, wind and hurricane exposure, especially along the Gulf Coast where separate windstorm coverage may be required. Inland metros generally see lower premiums than coastal counties.

Because Texas premiums swing with local risk, get a quote for the specific property rather than a rule of thumb, two homes a few miles apart in Texas can price very differently, and a home in a flood zone needs separate flood coverage. Enter your quoted annual premium into the calculator's insurance field so your $340,000-home estimate reflects full PITI, not just the $1,719 of principal and interest plus tax.

Second homes and investment property in Texas

A Texas vacation home or rental comes with tougher terms than a primary residence: lenders want a bigger down payment (often 10% to 25%, so $85,000 or more on a $340,000 property), charge a higher rate, and expect stronger reserves, with investment loans priced strictest of all.

The offset for Texas investors is that rental income can help you qualify and cover the payment, and the interest and $5,712-a-year property tax carry their own tax treatment worth reviewing with a professional. Model the Texas purchase here with the larger down payment and higher rate you are quoted, then test it against realistic local rent before committing.

Escrow and why your Texas payment can change

Even a fixed-rate Texas loan can see its payment move, because of escrow. Your servicer collects the $476-a-month property tax and your insurance into an escrow account settles those bills on your behalf and re-checks the math annually.

If Texas reassesses your home higher or your premium rises, the escrow portion climbs to cover it even though your $1,719 principal and interest never change; if they fall, you may get a refund. That is why the Texas payment at closing may not match year three. Budget a small cushion above the calculator's estimate, and claim every Texas exemption to keep the tax side of escrow low.

Closing costs and transfer taxes in Texas

On top of the down payment, Texas closing costs usually run 2% to 5% of the loan, about $5,440 to $13,600 on the representative $272,000 Texas loan, covering lender fees, title insurance, appraisal and prepaids. The line that varies most by state is the transfer tax: Texas is one of a small number of states with no real-estate transfer tax at all, which meaningfully lowers closing costs compared with states that charge one.

Because these are paid up front, they raise the cash you need on day one in Texas rather than your payment. Many Texas buyers offset them with seller credits or an assistance program. Add a realistic figure to your down payment to know the true cash needed to close on a Texas home.

Renting vs buying in Texas

Before committing to the $1,719-a-month principal and interest on a $340,000 Texas home, it is worth testing that against renting. In Texas, the buy-versus-rent math turns on how long you will stay, how fast prices and rents move locally, and the full carrying cost, the $476 monthly tax escrow, insurance, and maintenance on top of the loan.

Buying in Houston or San Antonio tends to favor those staying long enough to outrun the upfront costs, while a short Texas stay can favor renting. Run both sides with our rent vs buy calculator, then bring the purchase figure back here to confirm the Texas payment fits before you decide. Remember that buying also builds equity and locks your principal and interest, while Texas rents can rise every year, a factor the raw monthly comparison alone can understate.

Assumable loans and seller financing in Texas

A detail many Texas buyers overlook: some existing mortgages are assumable. FHA, VA and USDA loans can often be taken over by a qualified buyer at the seller's original rate, which is powerful in Texas if that rate is well below today's, since you keep the low rate on the remaining balance rather than financing the full $340,000 at current pricing.

The catch is that you must qualify and cover the gap between the sale price and the loan balance, often with cash or a second loan, so assumptions suit Texas homes with a large low-rate loan and modest equity. Ask whether a Texas listing's financing is assumable, then model the blended cost here against a standard new loan to see which wins.

First-time buyer steps in Texas

A first Texas purchase goes smoothly in order: (1) check credit and trim high-interest debt to improve your DTI; (2) estimate a comfortable payment here, tax and insurance included; (3) look into Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC) assistance toward the $68,000 down payment; (4) get preapproved; and (5) compare loan types before you lock.

Do these in sequence and the payment you plan for in Texas is the one you get. Skipping the preapproval is the most common misstep, with it, you shop Houston and San Antonio listings from a position of strength instead of guessing.

The income you need to buy in Texas

Lenders like your total housing payment near 28% of gross monthly income. On the representative $340,000 Texas home, principal, interest and tax come to about $2,195 a month, which points to roughly $8,000 a year in income before adding insurance and other debts, useful as a Texas baseline, not a hard rule.

Your own debts change the picture, so run our DTI calculator and get a preapproval estimate before shopping Texas listings. Always include the $476 Texas tax escrow and an insurance quote in the payment you test; leaving them out can overstate what you can safely afford by hundreds a month.

The full cost of owning a Texas home

A mortgage is only part of what a Texas home costs. Beyond the $1,719 principal and interest and the $476-a-month tax escrow, budget for maintenance, commonly estimated near 1% of the home's value a year, about $3,400 annually on a $340,000 Texas home, plus utilities, homeowners insurance, and any HOA dues.

Planning for these keeps a Texas purchase sustainable rather than stretched. The calculator gives you an accurate PITI baseline; add a realistic maintenance and utility figure on top to see the true monthly cost of owning in Texas, and to be sure the home fits your budget with room left for savings and the unexpected. A useful rule for Texas buyers is to hold back a reserve equal to a few months of the full $2,195-plus payment, so an escrow adjustment, a repair, or a gap between paychecks never puts the home at risk.

Common mistakes Texas buyers make

A handful of errors trip up Texas buyers. Most common is budgeting on the $1,719 principal-and-interest figure alone and forgetting the $476-plus of monthly Texas tax and insurance escrow. Next is shopping without a preapproval, which weakens Texas offers, and chasing a headline rate loaded with hidden points.

Others: skipping Texas down-payment assistance they would qualify for, waiving the inspection to win a bid, and opening new credit between preapproval and closing. Each is preventable, use the calculator and linked tools to test your full Texas payment, confirm your DTI, and lock a quote you understand.

Down payment and PMI in Texas

On a conventional Texas loan, putting less than 20% down means paying private mortgage insurance (PMI) until you reach 20% equity, while FHA carries its own premium. On the representative $340,000 Texas home, 20% down is $68,000, 10% is $34,000, and the 3.5% FHA minimum is about $11,900.

A smaller down payment gets you into a Texas home sooner but raises both the loan and the insurance: the FHA route here finances about $328,100 and runs roughly $2,074 a month in principal and interest before escrow, versus $1,719 on the 20%-down loan. The calculator's PMI field shows the true cost of a low down payment, so you can weigh buying now against saving longer, or using Texas down-payment assistance to close the gap.

Improving the rate on your Texas loan

The interest rate is the biggest lever on a Texas payment, and it turns on two things: your credit score and your debt-to-income ratio. Moving from the mid-600s to 740-plus can drop you a full rate tier, and on the $272,000 Texas loan even a quarter-point changes the $1,719 monthly figure and tens of thousands over 30 years.

Before locking a Texas rate, pull your credit, fix errors, hold off on new accounts and pay down cards, then confirm your standing with our DTI calculator. A few weeks of prep is one of the highest-return moves in the whole Texas buying process.

VA and USDA loans in Texas

VA loans give eligible Texas veterans, active-duty members and some surviving spouses a zero-down loan with no monthly mortgage insurance and low rates, so on the $340,000 home a qualifying buyer can skip the $68,000 down payment entirely, paying only the VA funding fee (waived with a service-connected disability).

USDA loans cover eligible rural and many suburban parts of Texas with zero down and reduced fees under income limits, and large stretches of Texas outside Houston and San Antonio qualify. Either can beat conventional or FHA on total cost, so check eligibility, then compare the resulting Texas payment here, keeping in mind that zero down cuts your upfront cash but enlarges the loan.

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