Texas Mortgage Calculator
2026Calculate your monthly mortgage payment in Texas. Factor in TX's 1.68% average property tax rate, homeowners insurance, and PMI for an accurate Texas home loan estimate.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Monthly P&I
$1,733.12
Total Monthly Payment
$2,178.96
Total Interest Paid
$343,924.57
Monthly Payment Breakdown
| Loan Amount | $280,000.00 |
| Down Payment (20.0%) | $70,000.00 |
| LTV Ratio | 80.0% |
| Principal & Interest | $1,733.12 |
| Property Tax | $320.83 |
| Homeowners Insurance | $125.00 |
| Total Monthly Payment | $2,178.96 |
| Total Interest Over Life of Loan | $343,924.57 |
15-Year vs 30-Year Comparison
15yr Monthly P&I
$2,408.42
15yr Total Interest
$153,515.76
Interest Savings (15yr)
$190,408.81
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How does buying a home in Texas work tax-wise?
Texas's average effective property tax rate is 1.68% of assessed value (2026), among the upper-middle range. On a $400,000 home, that translates to roughly $6,720 per year, billed by your county or municipality. Homestead exemptions, senior or veteran reductions, and assessment caps can reduce the effective rate for primary residences in many jurisdictions.
At the federal level, mortgage interest is deductible if you itemize, capped at the interest on the first $750,000 of acquisition debt (or $375,000 for married filing separately). State and local taxes (SALT), including property tax, are deductible up to a combined $40,000 cap for 2026 under OBBBA (raised from $10,000), with a 30% phase-down on MAGI above $500,000 (floor $10,000); the cap is inflation-indexed through 2029 before reverting to $10,000 in 2030. Closing costs typically run 2–5% of the loan amount; transfer taxes and recording fees vary by county.
Texas has no state income tax, simplifying the deduction picture. Use this calculator to estimate your monthly principal, interest, taxes, and insurance (PITI) payment given your loan terms and Texas's property-tax rate.
Texas mortgage market: foreclosure, transfer tax, and refinance rules
- Median home price (Q4 2025)
- $360,000
- Foreclosure type
- Non-judicial (power-of-sale)
- Real-estate transfer tax
- None (Texas has no state real-estate transfer tax)
Texas uses non-judicial foreclosure under the SCRA — typical timeline from notice of acceleration to trustee's sale is just 21 days after notice plus a posting requirement, among the fastest in the country. The state has no real-estate transfer tax (one of 13 states), keeping closing costs notably lower than Louisiana or Oklahoma. Texas's constitutional cap on home-equity loans (80% LTV) and the prohibition on Texas-specific 2nd liens for cash-out refinance are unique. Median home price of about $360,000 reflects sustained Austin, DFW, Houston, and San Antonio demand.
Texas Mortgage & Property Facts (2026)
| Avg. Property Tax Rate | 1.68% |
| State Income Tax | None |
| State Sales Tax | 6.25% |
| Estate Tax | No |
Texas mortgage — frequently asked questions
What's unique about Texas mortgages?
Texas has the country's most homeowner-protective constitutional provisions: (1) Texas Constitution Article 16 limits all home equity / cash-out refinance loans to 80% LTV maximum (no 90% or 95% cash-out allowed in Texas, even on conventional loans). (2) Mandatory 12-day cooling-off period before closing on home-equity loans. (3) Strict prohibition against many predatory lending practices. (4) Owelty mortgage — used to equalize value during marital separation. Texas non-judicial foreclosure is the country's fastest at 21 days from notice to sale.
How is Texas property tax different from other states?
Texas has the 7th-highest effective property tax in the country (~1.68%) — directly compensating for the no-state-income-tax structure. On a $400K home: $6,720/year property tax. Prop 4 of 2023 raised the school-district homestead exemption to $100K (up from $40K), saving typical homeowners $1,200-$2,000/year. School + city + county + special districts each impose separate millage rates that stack.
What about Texas mortgage rates and lender fees?
Texas mortgage rates track national averages but Texas has unique fee restrictions: 3% maximum total fees on home-equity loans (lower than federal QM rule of 5%). Title insurance is "filed" — every Texas title insurer must use the same Texas Department of Insurance approved rate. This eliminates rate shopping for title but ensures uniform consumer protection. Closing costs typically 2-3% of loan amount.
Do Texas first-time homebuyers get assistance?
Yes. Major programs: (1) TDHCA My First Texas Home — competitive 30-year fixed + up to 5% DPA (forgivable after 3 years) + optional MCC converting up to 40% of mortgage interest to federal tax credit (capped $2,000/year). (2) TSAHC Homes for Texas Heroes — up to 7% DPA for teachers, firefighters, EMS, peace officers, military veterans. (3) TSAHC Home Sweet Texas — general first-time buyers, similar DPA. TDHCA-approved homebuyer education required.