Mortgage Calculator Texas — Free 2026
Calculate your monthly mortgage payment for a Texas home. Includes property tax (1.60%) and insurance estimates.
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- Enter home price and down payment
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Understanding Mortgages in Texas
Texas is one of the fastest-growing states in the nation, attracting new residents with its strong job market, no state income tax, and relatively affordable housing. However, Texas homebuyers face some unique cost factors — particularly high property taxes and elevated insurance premiums — that make understanding your full monthly payment essential before you commit.
Texas Housing Market Overview
The median home price in Texas is approximately $340,000 as of 2026, well below coastal state averages. Major metro areas like Dallas-Fort Worth, Houston, Austin, and San Antonio each have distinct markets. Austin, once the state's hottest market, has seen prices moderate after rapid pandemic-era growth, while DFW and Houston continue to attract steady demand from corporate relocations and population inflows. Smaller cities like El Paso, Lubbock, and Corpus Christi remain among the most affordable metros in the country, with median prices often below $250,000. For a broader comparison across the US, see our Mortgage Calculator USA.
Property Taxes: The Trade-Off for No Income Tax
Texas has no state income tax, which is a major draw for high earners and retirees. The trade-off is property tax: at an average effective rate of 1.60%, Texas ranks among the highest in the nation. On a $340,000 home, that means roughly $5,440 per year — or $453 per month added to your mortgage payment. Rates vary significantly by county and school district, with some areas exceeding 2.5%. The good news is that Texas offers a generous homestead exemption: as of 2024, the school district exemption alone is $100,000, and seniors and disabled homeowners get additional relief. Filing for your homestead exemption through your county appraisal district is one of the most important steps a new Texas homeowner can take.
Insurance Costs in Texas
Homeowners insurance in Texas averages about $2,100 per year — significantly above the national average. The state's exposure to hurricanes along the Gulf Coast, hailstorms in North Texas, and tornadoes across the plains drives premiums higher. Buyers in coastal counties may also need separate windstorm coverage through the Texas Windstorm Insurance Association (TWIA). Shopping multiple insurers and bundling with auto policies can help manage costs. You can use our salary calculator to see how your take-home pay in Texas compares after accounting for the zero income tax advantage.
Tips for Texas Homebuyers
First-time buyers should explore the Texas State Affordable Housing Corporation (TSAHC) and Texas Department of Housing and Community Affairs (TDHCA), both of which offer down payment assistance and below-market rate mortgages. Because property taxes are high, always factor the full PITI into your budget — not just principal and interest. Consider protesting your property tax appraisal annually, as many Texas homeowners successfully reduce their assessed value by presenting comparable sales data to the appraisal review board.
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