Texas Mortgage Calculator
Buying a home in Texas is exciting — but understanding your true monthly mortgage payment is essential before making a decision. Our Texas Mortgage Calculator helps you quickly estimate your:
- Loan amount
- Monthly principal & interest
- Monthly property tax
- Monthly home insurance
- Total monthly mortgage payment
This easy-to-use tool is designed specifically with Texas property tax rates and homeownership costs in mind, giving you a more realistic payment estimate.
Why You Need a Texas Mortgage Calculator
Mortgage payments in Texas can vary significantly due to:
- High property tax rates compared to many states
- Insurance costs depending on location
- Loan term and interest rate differences
- Down payment amount
Unlike basic mortgage calculators, this tool includes property tax and insurance, which are major components of Texas homeownership costs.
What This Calculator Includes
Your total monthly payment in Texas typically includes:
1. Principal & Interest (P&I)
This is your loan repayment amount based on:
- Loan amount
- Interest rate
- Loan term
2. Property Taxes
Texas is known for relatively higher property taxes. The calculator uses your entered tax rate to estimate monthly tax payments.
3. Home Insurance
Homeowners insurance protects your property from damage and liability. The tool spreads your annual insurance cost into monthly payments.
How to Use the Texas Mortgage Calculator
Follow these simple steps:
Step 1: Enter Home Price
Input the total purchase price of the home.
Example: $350,000
Step 2: Enter Down Payment
Enter how much you plan to pay upfront.
Example: $70,000
The calculator will automatically subtract this from the home price to determine your loan amount.
Step 3: Enter Interest Rate (%)
Input your expected annual mortgage interest rate.
Example: 6.5%
Step 4: Enter Loan Term (Years)
Common loan terms:
- 30 years (most common)
- 15 years
- 20 years
Default is 30 years.
Step 5: Enter Property Tax Rate (%)
Texas property tax rates vary by county but often range from 1.5% to 2.5%.
Default example: 1.8%
Step 6: Enter Annual Home Insurance
Input your estimated yearly insurance premium.
Example: $2,000 per year
Step 7: Click “Calculate”
You’ll instantly see:
- Loan Amount
- Monthly Principal & Interest
- Monthly Property Tax
- Monthly Insurance
- Total Monthly Payment
Use the reset button to calculate another scenario.
Example Texas Mortgage Calculation
Let’s assume:
- Home Price: $400,000
- Down Payment: $80,000
- Interest Rate: 6.5%
- Loan Term: 30 years
- Property Tax Rate: 1.8%
- Annual Insurance: $2,000
Loan Amount
$400,000 – $80,000 = $320,000
Monthly Principal & Interest
Calculated using standard mortgage formula.
Monthly Property Tax
($400,000 × 1.8%) ÷ 12 = $600 per month
Monthly Insurance
$2,000 ÷ 12 = $166.67 per month
Total Monthly Payment
P&I + Tax + Insurance
This gives you a realistic monthly estimate before speaking with a lender.
Why Texas Property Taxes Matter
In Texas, there is no state income tax, but property taxes are higher than the national average. That means:
- Your monthly payment may be significantly impacted by local tax rates
- Comparing counties can save you money
- New construction homes may have different tax assessments
Always check the exact county tax rate for accurate planning.
Understanding the Mortgage Formula
The calculator uses the standard amortization formula:
- Converts annual interest rate to monthly rate
- Multiplies by total number of payments
- Calculates fixed monthly principal & interest
If your interest rate is 0%, the payment is simply loan amount divided by total months.
What This Calculator Does Not Include
For simplicity, this tool does not include:
- HOA fees
- Private Mortgage Insurance (PMI)
- Closing costs
- Maintenance expenses
- Utilities
For full budgeting, consider these additional costs separately.
Benefits of Using This Texas Mortgage Calculator
✅ Fast and easy to use
✅ Includes property taxes
✅ Includes insurance
✅ Shows total monthly payment
✅ Helps compare loan scenarios
✅ Great for first-time buyers
15 Frequently Asked Questions (FAQs)
1. Is this calculator only for Texas?
It’s optimized for Texas property taxes but can be used anywhere.
2. Why are Texas property taxes higher?
Texas does not have a state income tax, so property taxes fund local services.
3. What is a typical Texas property tax rate?
Usually between 1.5% and 2.5%, depending on county.
4. What is principal and interest?
Principal is the loan amount. Interest is the cost of borrowing.
5. What loan term is best?
30 years offers lower payments; 15 years saves more in interest.
6. Does this include PMI?
No, Private Mortgage Insurance is not included.
7. What happens if I put 20% down?
You may avoid PMI and reduce monthly payments.
8. Is homeowners insurance required?
Yes, most lenders require insurance.
9. How accurate is this calculator?
It provides a strong estimate based on your inputs.
10. Can I change the interest rate to compare scenarios?
Yes, adjust the rate to see payment differences.
11. Does it work for refinancing?
Yes, enter your remaining loan amount as home price and zero down payment.
12. What if my down payment equals home price?
The calculator will alert you since no loan is needed.
13. Are HOA fees included?
No, those must be added separately.
14. How can I lower my monthly payment?
Increase down payment, lower interest rate, or extend loan term.
15. Should I rely only on this calculator before buying?
No. Always consult a lender for official loan estimates.
Final Thoughts
Buying a home in Texas requires careful financial planning, especially with property taxes playing a major role in monthly costs. This Texas Mortgage Calculator gives you a clear breakdown of:
- Loan amount
- Monthly mortgage payment
- Tax and insurance impact
- Total monthly housing cost
Use it to compare scenarios, plan your budget, and make smarter home-buying decisions with confidence.