Texas Home Mortgage Calculator
Buying a home in Texas is exciting — but understanding your true monthly mortgage cost is essential before making an offer. Property taxes in Texas are higher than many other states, and additional costs like insurance and HOA fees can significantly impact your budget.
Our Texas Home Mortgage Calculator helps you quickly estimate:
- Loan amount
- Monthly principal & interest
- Monthly property tax
- Monthly home insurance
- Monthly HOA fees
- Total monthly mortgage payment
- Total interest paid over the life of the loan
Whether you’re buying in Houston, Dallas, Austin, or San Antonio, this calculator gives you a realistic estimate tailored to Texas-specific costs.
Why a Texas-Specific Mortgage Calculator Matters
Texas has:
- ✅ No state income tax
- ⚠️ Higher-than-average property tax rates
- 🏘 Many communities with HOA fees
- 🌪 Higher home insurance costs in some regions
A generic mortgage calculator often ignores these additional costs. Our Texas Mortgage Calculator includes:
- Property tax rate (default 1.80%)
- Annual home insurance
- Monthly HOA fees
This gives you a more accurate estimate of your total monthly payment, not just principal and interest.
How to Use the Texas Mortgage Calculator
Using the calculator is simple. Follow these steps:
Step 1: Enter the Home Price
Input the purchase price of the property.
Example:
- $250,000
- $400,000
- $650,000
Step 2: Enter Your Down Payment
Enter the amount you plan to pay upfront.
Example:
- $20,000
- $50,000
- $100,000
Your loan amount is automatically calculated as:
Home Price – Down Payment
Step 3: Enter the Interest Rate (%)
Input your expected mortgage interest rate.
Common loan types:
- 30-year fixed
- 15-year fixed
- Adjustable-rate mortgages
Even a 0.5% difference can significantly affect your monthly payment and total interest paid.
Step 4: Select Loan Term (Years)
Choose the length of your loan:
- 30 years (most common)
- 15 years (lower total interest)
- 20 years (middle option)
Step 5: Enter Property Tax Rate (%)
Texas property tax rates typically range from:
- 1.5% to 2.5%
The default value is set to 1.80%, but you can adjust based on your county.
Step 6: Enter Annual Home Insurance
Home insurance in Texas varies depending on:
- Location
- Home value
- Storm risk
- Coverage type
Enter your estimated annual premium.
Step 7: Enter Monthly HOA Fees (If Applicable)
If your property is part of a homeowners association, enter your monthly HOA cost. If not, leave it at $0.
Step 8: Click “Calculate”
The calculator instantly shows:
- Loan Amount
- Monthly Principal & Interest
- Monthly Property Tax
- Monthly Insurance
- Monthly HOA
- Total Monthly Payment
- Total Interest Paid
Example 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: $2,400
- HOA: $75/month
Results May Look Like:
- Loan Amount: $320,000
- Monthly Principal & Interest: Calculated automatically
- Monthly Property Tax: Based on home value
- Monthly Insurance: $200
- Monthly HOA: $75
- Total Monthly Payment: Full combined total
- Total Interest Paid: Over 30 years
This helps you determine if the home fits comfortably within your budget.
Understanding Mortgage Components in Texas
1. Principal & Interest (P&I)
This is the base loan payment. It depends on:
- Loan amount
- Interest rate
- Loan term
2. Property Taxes
Texas property taxes are relatively high because the state has no income tax.
Property tax is calculated as:
Home Value × Tax Rate ÷ 12
This is a major factor in your total monthly payment.
3. Home Insurance
Required by lenders, especially in:
- Coastal areas
- Storm-prone regions
- Flood zones
4. HOA Fees
Common in:
- Master-planned communities
- New subdivisions
- Condo developments
HOA fees vary widely.
Why Property Taxes Matter More in Texas
Compared to states like:
- California
- Florida
Texas often has higher property tax rates. This makes it essential to include tax calculations when estimating your true monthly payment.
Ignoring property taxes can underestimate your housing costs by hundreds of dollars per month.
Benefits of Using Our Texas Mortgage Calculator
✔ Accurate Texas-specific calculations
✔ Includes property tax and insurance
✔ Shows total interest paid
✔ Fast and easy to use
✔ Completely free
How to Lower Your Texas Mortgage Payment
- Increase your down payment
- Shop for lower interest rates
- Choose a longer loan term (lower monthly, higher interest total)
- Appeal property tax assessments if overvalued
- Improve credit score before applying
Fixed vs 15-Year Mortgage in Texas
30-Year Mortgage
- Lower monthly payments
- Higher total interest
15-Year Mortgage
- Higher monthly payments
- Much lower total interest
Use the calculator to compare both scenarios.
Frequently Asked Questions (FAQs)
1. What does this Texas Mortgage Calculator calculate?
It estimates total monthly payments including taxes, insurance, and HOA.
2. Is property tax included?
Yes, based on the rate you enter.
3. What is the average property tax rate in Texas?
Typically between 1.5% and 2.5%.
4. Does this include PMI?
No, PMI is not included unless manually added to HOA or insurance.
5. Can I change the interest rate?
Yes, you can enter any rate.
6. What happens if I enter 0% interest?
The calculator divides the loan evenly across the term.
7. Is HOA required?
Only if your property has HOA fees.
8. How accurate is this calculator?
It provides strong estimates but not lender-approved figures.
9. Does it work for 15-year loans?
Yes.
10. Does it calculate total interest paid?
Yes, over the full loan term.
11. Can I use this for refinancing?
Yes, just enter your refinance loan details.
12. Is this calculator free?
Yes, completely free.
13. Why are Texas property taxes high?
Because Texas has no state income tax.
14. Should I include insurance?
Yes, lenders require it and it affects affordability.
15. Is this calculator only for Texas?
It’s optimized for Texas but can be used elsewhere by adjusting tax rate.
Final Thoughts
Buying a home in Texas requires more than just calculating principal and interest. Property taxes, insurance, and HOA fees all play a major role in determining your real monthly cost.
Our Texas Home Mortgage Calculator helps you:
- Understand your true monthly payment
- Compare loan options
- Plan your budget with confidence
- Avoid financial surprises
Before making an offer, use this calculator to ensure your dream home truly fits your financial goals.