Texas Mortgage Calculator

Calculate your Texas mortgage payment with PMI, property tax, and closing costs.
Useful for home buyers in Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, Plano, Arlington, and all of Texas.
Last updated: June 2025 Manually verified by: ManyCalcs team
Enter the total purchase price of the home
Minimum 3% for conventional loans, 3.5% for FHA
Current TX average: 6.5-7.5% (varies by credit score)
Common terms: 15, 20, 25, or 30 years
Bi-weekly payments can save thousands in interest
May qualify for TSAHC or other assistance programs
Get instant estimates including TX property tax and PMI
Why use a Texas Mortgage Calculator?
Texas has unique property tax rates (average 1.60%), and this calculator provides accurate estimates for PMI, property tax, and closing costs specific to Texas.

Result

Enter your details to see the estimated payment here.
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Texas Property Tax: The average effective property tax rate is about 1.60% (higher than the national average). Closing costs in TX are typically 2-4% of the purchase price.

Average Home Prices in Major Texas Cities (2025)

City Detached Semi-Detached Townhouse Condo
Houston $385,000 $320,000 $280,000 $240,000
Dallas $465,000 $395,000 $345,000 $295,000
Austin $575,000 $485,000 $425,000 $365,000
San Antonio $295,000 $245,000 $215,000 $185,000
Fort Worth $425,000 $355,000 $315,000 $275,000
El Paso $225,000 $185,000 $165,000 $145,000
Plano $525,000 $445,000 $395,000 $345,000
Arlington $395,000 $325,000 $285,000 $245,000
Mobile Note: On small screens, some columns are hidden for better readability. Prices are approximate averages for 2025 and may vary by neighborhood and property features.

Texas Mortgage Economic Overview (2025)

Current Mortgage Rates

  • 30-Year Fixed: 6.8% - 7.2%
  • 15-Year Fixed: 6.3% - 6.7%
  • 5/1 ARM: 6.1% - 6.5%
  • VA Loans: 6.5% - 6.9%
  • FHA Loans: 6.7% - 7.1%
Rates vary by lender, credit score, and down payment
Source: Freddie Mac PMMS, Bankrate

Federal Economic Indicators

  • Fed Funds Rate: 5.25% - 5.50%
  • 10-Year Treasury: 4.3% - 4.6%
  • Inflation (CPI): 3.1%
  • Unemployment: 3.9%
  • GDP Growth: 2.4%
Data as of June 2025
Sources: Federal Reserve, US Treasury, Bureau of Labor Statistics

Texas Housing Market Trends

Homeownership Rates

  • Texas: 62.9%
  • National Average: 65.8%
  • First-Time Buyers: 35%
  • Cash Purchases: 22%

Market Activity

  • Home Sales (YoY): -8.5%
  • Days on Market: 28 days
  • Inventory: 3.2 months
  • Price Growth: +5.8%

Affordability Index

  • TX Affordability: 48%
  • Income Needed: $89,000
  • Median Income: $67,400
  • Housing Burden: 24.8%
Data Sources: Texas Association of Realtors, National Association of Realtors, US Census Bureau

Regional Texas Housing Data (2025)

Metro Area Home Price Median Income Tax Rate Median Rent Afford %
Houston Metro $385,000 $63,800 1.69% $1,450 52%
Dallas-Fort Worth $465,000 $68,200 1.81% $1,650 45%
Austin Metro $575,000 $78,500 1.74% $1,850 38%
San Antonio $295,000 $56,400 1.52% $1,250 62%
El Paso $225,000 $48,200 1.35% $1,050 68%
Corpus Christi $285,000 $52,800 1.45% $1,180 58%
Affordability %: Percentage of households that can afford median-priced home with 20% down payment
Sources: Texas Association of Realtors, Zillow Research, ATTOM Data

Factors Increasing Rates

  • Federal Reserve Policy: Continued high federal funds rate to combat inflation
  • Bond Market Volatility: 10-year Treasury yields affecting mortgage pricing
  • Economic Uncertainty: Geopolitical tensions and market volatility
  • Credit Spreads: Lender risk premiums remain elevated
  • Housing Demand: Limited inventory keeping prices elevated

Potential Rate Relief Factors

  • Inflation Moderation: Fed may pivot if inflation continues declining
  • Economic Slowdown: Recessionary pressures could prompt rate cuts
  • Increased Inventory: More homes for sale reducing price pressure
  • Government Programs: First-time buyer assistance and down payment help
  • Lender Competition: More competitive mortgage products and pricing

Texas Housing Market Strengths

Key Advantages:

  • 48% of households can afford median-priced home
  • $89,000 annual income needed for median home purchase
  • Median home price 4.2x median household income
  • Rental costs consume 22.8% of median income

Supporting Factors:

  • Strong job growth and economic diversification
  • No state income tax offsetting property taxes
  • Abundant land for new development
  • Business-friendly regulations and development

Impact: Texas attracts significant in-migration from higher-cost states, while maintaining relatively affordable housing and strong job growth across multiple sectors.

Sources: TAR Affordability Report, McKinsey Housing Research

2025 Texas Housing Market Outlook

Price Projections

  • 2025 Growth: +4% to +6%
  • Austin Metro: +3% to +5%
  • Dallas-Fort Worth: +4% to +6%
  • Houston Metro: +5% to +7%

Market Conditions

  • Sales Volume: Strong growth expected
  • Inventory: Balanced at 4-5 months
  • Construction: 180,000 new units planned
  • Migration: Continued strong inflow from other states

Rate Expectations

  • Q2 2025: 6.5% - 7.0%
  • Q3 2025: 6.0% - 6.5%
  • Q4 2025: 5.5% - 6.0%
  • Risk: Economic volatility could delay cuts
Bottom Line: Texas's housing market shows strong fundamentals with robust job growth, in-migration, and relatively affordable housing. Property tax considerations remain important for total homeownership costs, but the state's economic diversity provides stability.

Texas Economy & Lifestyle Guide

Economic Overview

Major Companies & Employers

Technology & Innovation
  • Dell Technologies - Round Rock (165,000+ employees)
  • AMD - Austin (26,000+)
  • Texas Instruments - Dallas (30,000+)
  • IBM - Austin (12,000+)
  • Oracle - Austin (8,000+)
  • Meta - Austin (3,000+)
  • Apple - Austin (7,000+)
  • Tesla - Austin Gigafactory (20,000+)
Energy & Oil
  • ExxonMobil - Irving (63,000+ global)
  • ConocoPhillips - Houston (9,900+)
  • Phillips 66 - Houston (14,000+)
  • Kinder Morgan - Houston (11,000+)
  • Enterprise Products - Houston (7,000+)

Key Industries

  • Energy: $400B+ annually, leading oil & gas producer
  • Technology: $200B+ sector, Austin "Silicon Hills"
  • Aerospace: NASA Johnson Space Center, SpaceX
  • Agriculture: $25B annually, #1 cattle producer
  • Manufacturing: $300B+ annually, diverse production
  • Healthcare: Texas Medical Center (world's largest)
  • Finance: Charles Schwab, American Express
  • Retail: Walmart, AT&T, Southwest Airlines
Economic Fact: Texas's economy ranks 2nd in the US and 8th globally if it were a country, with $2.8T GDP.

Top Attractions & Destinations

Major Cities & Culture
  • Austin - Music capital, SXSW, tech hub
  • San Antonio - River Walk, The Alamo
  • Houston - Space Center, Museum District
  • Dallas - Arts District, Cowboys Stadium
Natural Attractions
  • Big Bend National Park - West Texas
  • Guadalupe Mountains - Highest peak in Texas
  • South Padre Island - Gulf Coast beaches
  • Hill Country - Wine country & lakes
  • Palo Duro Canyon - Second largest in US
Entertainment & Sports
  • AT&T Stadium - Dallas Cowboys
  • Circuit of the Americas - F1 racing
  • State Fair of Texas - Annual tradition
  • Fort Worth Stockyards - Western heritage

Airbnb & Short-Term Rental Prices (2025)

Area Avg/Night Monthly Est.
Austin $175 $4,375
Dallas $145 $3,625
Houston $125 $3,125
San Antonio $110 $2,750
Fort Worth $135 $3,375
Galveston $195 $4,875
Lubbock $125 $3,125
Corpus Christi $95 $2,375
Monthly estimates based on 25-day occupancy

Why Texas - Professionals

Career Opportunities
  • Major tech hub salaries (Austin avg $140K+)
  • Energy sector leadership & innovation
  • Business-friendly environment & low taxes
  • Startup ecosystem in Austin "Silicon Hills"
  • Corporate relocations from high-tax states
Lifestyle & Social
  • Vibrant music scene (Austin, Dallas, Houston)
  • Strong young professional networks
  • Year-round outdoor activities
  • Diverse food scene & BBQ culture
  • Southern hospitality & community feel
Challenges
  • Hot, humid summers (especially Houston)
  • Property taxes among highest in US
  • Growing traffic in major metros
  • Hurricane risk (Gulf Coast areas)

Why Texas - Families

Education & Opportunities
  • Top universities (UT Austin, Rice, Texas A&M)
  • Strong public schools in Plano, Frisco, etc.
  • Growing STEM programs & tech education
  • Space Center Houston & science museums
  • Affordable private school options
Family Lifestyle
  • Spacious homes with large yards
  • Gulf Coast beaches & lake recreation
  • Theme parks (Six Flags, Schlitterbahn)
  • Strong family-oriented communities
  • Lower cost of living for families
Family Challenges
  • School district competition in top areas
  • Longer commutes in major metros
  • Summer heat limits outdoor activities
  • Childcare costs ($800-1,800/month avg)
Texas Advantages: No state income tax, business-friendly environment, strong job growth, lower cost of living, diverse economy, affordable housing
Key Considerations: High property taxes, hot summers, hurricane risk (coastal), traffic growth in major metros, less public transit
Economic Data Sources: Bureau of Economic Analysis, US Census, Airbnb Market Data, Travel Texas

How Mortgage Rules Work in Texas

Example: On a $400,000 home with 10% down in Dallas, you pay PMI and property tax. Closing costs are typically 2-4% of the purchase price.

Texas Mortgage FAQ

Common questions and detailed answers for Texas home buyers covering first-time buyer assistance, financing, and affordability.

Texas offers several first-time buyer programs:
Texas State Programs
  • TSAHC My First Texas Home: Down payment assistance up to 5%
  • TDHCA My Choice Texas Home: Below-market interest rates
  • Texas Bootstrap Loan: Self-help housing program
  • HOME Investment Partnerships: Local down payment assistance
Federal Programs
  • FHA Loans: 3.5% down payment, flexible credit
  • VA Loans: 0% down for eligible veterans
  • USDA Loans: 0% down in rural areas
  • Conventional 3% Down: Fannie Mae/Freddie Mac programs
Typical Requirements: First-time buyer status (or haven't owned in 3+ years), income limits (80-120% of Area Median Income), completion of homebuyer education course, minimum credit score 620+.
Learn More: TSAHC Programs, TDHCA Housing, CFPB First-Time Buyer Guide

Down payment requirements vary by loan type and lender:
Loan Type Min Down Typical Range Notes
Conventional 3% 5% - 20% PMI if <20%
FHA 3.5% 3.5% - 10% MIP required
VA 0% 0% - 10% Veterans only
USDA 0% 0% - 5% Rural areas
Jumbo 10% 10% - 20% >$766,550
Texas Averages (2025)
  • First-time buyers: 7.5% average
  • Repeat buyers: 15.2% average
  • All buyers: 12.8% average
  • Cash purchases: 22% of all sales
Strategy: Higher down payments reduce monthly costs but require more upfront cash. Consider Texas property tax rates when calculating total monthly payments.
Data Sources: NAR Home Buyers Report, TAR Market Data, Fannie Mae Guidelines

Texas closing costs typically range from 2-4% of home price (average 3.0%):
Major Cost Components
  • Title Insurance: $1,000 - $2,500
  • Attorney/Escrow Fees: $800 - $2,000
  • Loan Origination: 0.5% - 1% of loan amount
  • Appraisal: $450 - $750
  • Home Inspection: $350 - $700
  • Credit Report: $50 - $100
  • Recording Fees: $50 - $200
Prepaid Items
  • Property Tax (prorated): Varies by purchase date
  • Homeowner's Insurance: $1,000 - $2,500
  • Prepaid Interest: Based on closing date
  • HOA Fees (if applicable): Prorated amount
Example: On a $400,000 home, expect $8,000 - $16,000 in closing costs (avg $12,000).
Texas-Specific Considerations
  • Transfer Tax: Texas has no state transfer tax (local fees may apply)
  • Title Policy: Texas Title Code regulates title insurance rates
  • Property Tax Proration: Based on tax year (January 1 - December 31)
  • Survey Requirements: Often required by lenders in Texas
Resources: CFPB Closing Costs Guide, TAR Closing Cost Data, American Land Title Association

Texas property taxes are based on appraised value with no state income tax offset:
Key Facts
  • Average Rate: 1.60% statewide (highest in US)
  • Assessment: Based on appraised market value
  • Payment: Due typically by January 31
  • Exemptions: Homestead exemption available
  • Appeals: Can protest appraisal values
Major Metro Areas
  • Houston (Harris County): 2.30%
  • Dallas (Dallas County): 2.15%
  • Austin (Travis County): 1.85%
  • San Antonio (Bexar County): 1.45%
  • Fort Worth (Tarrant County): 1.95%
Texas Homestead Exemption

Texas provides significant property tax relief through homestead exemptions:

  • Homestead exemption reduces taxable value by up to $40,000
  • Additional exemptions for seniors (65+) and disabled persons
  • School tax ceiling for seniors - taxes frozen at age 65
  • Must be primary residence and filed by April 30
Example Calculation

$400,000 home in Austin:

  • Tax Rate: 1.85%
  • With $40K exemption: $360,000 taxable
  • Annual Tax: $6,660
  • Monthly (escrow): $555
Tip: Property taxes can be protested annually. About 60% of successful protests result in lower appraisals.
Official Sources: TX Comptroller, TAR Property Tax Data, TX Dept. of Housing

Texas affordability benefits from strong job growth and reasonable home prices:
Affordability Guidelines
  • 28% Rule: Housing ≤ 28% of gross monthly income
  • 36% Rule: Total debt ≤ 36% of gross income
  • Texas Reality: Many pay 25-35% due to reasonable costs
  • Debt-to-Income: Most lenders allow up to 43-50%
Income Requirements by Area
  • Austin Metro: $95,000+
  • Dallas Metro: $85,000+
  • Houston Metro: $78,000+
  • San Antonio: $65,000+
  • Fort Worth: $72,000+
Affordability Strategies
  • Increase Income: Side businesses, career advancement
  • Reduce Debt: Pay off credit cards, student loans
  • Save More: Larger down payment reduces monthly costs
  • Consider Location: Smaller Texas cities more affordable
  • Use Assistance: Down payment help programs
  • Co-buying: Purchase with family/friends
Reality Check: 48% of TX households can afford median-priced homes vs. 65.8% nationally.
Alternative Homeownership Options
  • Condos/Townhomes: Lower entry prices
  • Fixer-uppers: Build equity through improvements
  • Shared Equity: Programs like TSAHC assistance
  • House Hacking: Rent out rooms/units
  • Relocate: Consider more affordable TX regions
  • Wait & Save: Build larger down payment
Quick Affordability Check

Rule of thumb for TX:

  • Home price ≤ 4-5x annual income
  • Monthly payment ≤ 40% gross income
  • Emergency fund: 3-6 months expenses
  • Down payment + closing costs saved
Success Strategy: Start with a realistic budget, explore all financing options, and consider building wealth over time through homeownership.
Affordability Resources: TAR Affordability Index, CFPB Affordability Guide, Freddie Mac Research, NAR Affordability Data

Texas Mortgage Education Guide

Essential mortgage information for Texas home buyers, including loan types, down payment requirements, closing costs, and PMI guidelines.

Mortgage Types Available in Texas

Conventional Loans

  • 30-Year Fixed: Most popular, stable payments
  • 15-Year Fixed: Higher payments, lower total interest
  • Adjustable Rate (ARM): Lower initial rates, risk of increases
  • Jumbo Loans: For homes above $766,550 (2024 limit)

Government-Backed Loans

  • FHA Loans: 3.5% down, flexible credit requirements
  • VA Loans: 0% down for eligible veterans
  • USDA Loans: 0% down in eligible rural areas

Texas-Specific Programs

  • TSAHC First-Time Buyer: Down payment assistance
  • My First Texas Home: Below-market rate loans
  • My Choice Texas Home: Competitive rates
  • Texas Bootstrap: Self-help housing program

Interest Rate Types

  • Fixed Rate: Same rate for entire loan term
  • ARM (5/1, 7/1, 10/1): Fixed period then adjustable
  • Interest-Only: Pay only interest initially
Learn More: TSAHC, FHA Guidelines, VA Home Loans, Fannie Mae

Down Payment Averages in Texas

By Loan Type

  • Conventional Loans: 5% - 20%
  • FHA Loans: 3.5% minimum
  • VA Loans: 0% down
  • USDA Loans: 0% down
  • Jumbo Loans: 10% - 20%

Texas Averages (2025)

  • First-Time Buyers: 7.5%
  • Repeat Buyers: 15.2%
  • All Buyers: 12.8%
  • Cash Purchases: 22% of sales
Tip: Higher down payments reduce PMI costs and monthly payments but require more upfront cash.
Data Sources: NAR Home Buyers Report, TAR Market Data

Texas Closing Costs

Typical Cost Range

  • Total Closing Costs: 2% - 4% of home price
  • Texas Average: 3.0% of purchase price
  • Example ($400K home): $12,000

Major Components

  • Title Insurance: $1,000 - $2,500
  • Attorney/Escrow Fees: $800 - $2,000
  • Home Inspection: $350 - $700
  • Appraisal: $450 - $750
  • Loan Origination: 0.5% - 1% of loan
  • Property Tax (prorated): Varies
  • Homeowner's Insurance: $1,000 - $2,500
Reference: CFPB Closing Costs Guide, TAR Closing Cost Data

Private Mortgage Insurance (PMI) Rules in Texas

When PMI is Required

  • Down Payment: Less than 20%
  • Loan-to-Value: Above 80%
  • Loan Types: Conventional loans only
  • FHA Alternative: Mortgage Insurance Premium (MIP)
Note: VA loans don't require PMI but have a funding fee.

PMI Cost Ranges

  • 5% - 9.99% Down: 0.85% - 1.20% annually
  • 10% - 14.99% Down: 0.50% - 0.95% annually
  • 15% - 19.99% Down: 0.30% - 0.75% annually
  • Credit Score Impact: Lower scores = higher PMI
Example: $700K loan, 10% down = $292-$554/month PMI

PMI Removal Rules

  • Automatic Removal: At 78% LTV
  • Request Removal: At 80% LTV
  • Requirements: Good payment history
  • Appraisal: May be required for removal
  • Recast Option: Large payment to reduce LTV
Tip: Track your home value increases to accelerate PMI removal.

PMI vs. MIP Comparison

Feature Conventional PMI FHA MIP
Min Down 3% - 5% 3.5%
Removal At 78-80% LTV 11 years min
Cost 0.3%-1.2%/yr 0.85%/yr + upfront
Credit Req Higher scores More flexible
Official Guidelines: CFPB PMI Guide, Fannie Mae PMI, Freddie Mac, FHA MIP Guidelines

Texas Down Payment Assistance Programs

Statewide Programs

  • TSAHC My First Texas Home: Up to 5% down payment help
  • TDHCA My Choice Texas Home: Below-market rate loans
  • Texas Bootstrap Loan: Self-help housing program
  • HOME Investment Partnerships: Local assistance

Local Programs

  • Houston: Harris County First-Time Buyer Program
  • Dallas: DHA Homebuyer Assistance Program
  • Austin: AHFC Down Payment Assistance
  • San Antonio: SAHA Homeownership Program
Eligibility Requirements (Typical)
  • First-time home buyer (or haven't owned in 3+ years)
  • Income limits (usually 80-120% of Area Median Income)
  • Completion of homebuyer education course
  • Primary residence requirement
  • Minimum credit score (typically 620+)
Program Information: TSAHC Programs, Down Payment Resource, HUD Texas

Texas Mortgage Application Timeline

Pre-Approval (1-3 days)

  • Submit application
  • Provide income docs
  • Credit check
  • Get pre-approval letter

Home Shopping (30-60 days)

  • Search for homes
  • Make offers
  • Negotiate terms
  • Sign purchase contract

Processing (30-45 days)

  • Submit full application
  • Order appraisal
  • Home inspection
  • Underwriting review

Closing (3-5 days)

  • Final walkthrough
  • Review closing docs
  • Wire closing funds
  • Get keys!
Texas Specific: Texas has a more streamlined approval process with generally faster closings. Property surveys are commonly required, and the state's business-friendly environment often results in competitive lending terms.
Process Guide: CFPB Home Buying Guide, TAR Home Buying Tips

Texas Mortgage Calculator Summary

Our comprehensive Texas mortgage calculator helps you estimate monthly payments, including Texas's high property tax, PMI, and closing costs for all cities including Houston, Dallas, Austin, San Antonio, Fort Worth, and El Paso.

Key Features for Texas Home Buyers:

  • Property Tax Calculation: Accurate TX property tax (1.60% average statewide)
  • PMI Estimation: Private mortgage insurance calculations for down payments under 20%
  • Closing Cost Estimates: Comprehensive closing cost projections (2-4% of home price)
  • City-Specific Data: Tailored calculations for Houston, Dallas, Austin, and all TX areas

Texas Real Estate Market Insights:

Median Home Price:
$385,000 (Statewide)
Average Property Tax:
1.60% (Highest in US)

Popular Texas Cities for Home Buyers: Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, Arlington, Plano, Corpus Christi, Garland, Lubbock, Irving, Laredo, Amarillo, McKinney, Grand Prairie, Brownsville, Frisco, Pasadena, and Mesquite.

Quick Links & Resources

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Calculator Last Updated:
June 2025
Data Sources: Texas.gov, TSAHC, TAR.com