A Texas mortgage payment starts with the same formula as anywhere in the country, then picks up two costs that vary sharply by state: property tax at an effective 1.31% and homeowners insurance near $2,600 a year. On a typical Texas home of $295,000, those two add $538 to every monthly payment before the loan costs anything. The tool below is preloaded with that home, 10% down, and a 30-year fixed rate of 6.25%.
The Texas housing market at a glance
| Typical home valueZillow Home Value Index, statewide | $296,000 |
|---|---|
| Effective property tax rate$3,860 a year on the example home | 1.31% |
| Typical homeowners insurance$217 a month in escrow | $2,600 |
| Median household income$6,643 a month before tax | $79,721 |
| Example payment, share of median incomeAbove the 28% housing guideline | 34.4% |
Home values: Zillow, September 2026. Income, rent, and property tax: U.S. Census Bureau ACS, 2024. Insurance is an estimate. Sources · How every state compares
A Texas mortgage, line by line
| Home price | $295,000 |
|---|---|
| Down payment (10%) | $29,500 |
| Loan amount | $265,500 |
| Principal & interest at 6.25% | $1,635 |
| Property tax | $322 |
| Homeowners insurance | $217 |
| PMI at 0.5%Ends after 8 yrs 10 mo | $111 |
| Total monthly paymentHeadline result | $2,284 |
| Interest over 30 yearsHeadline result | $323,003 |
| Income for a 28% housing ratioMedian Texas household: $79,721 | $97,872 |
What changes the payment in Texas
Property taxes in Texas
Texas has no state income tax and one of the highest effective property tax rates in the US, levied by county, school district, and special districts; the homestead exemption applies only to a primary residence. At the statewide effective rate of 1.31%, the example home pays $3,860 a year, $322 of every monthly payment. Local rates inside Texas vary well beyond the statewide figure, so take the number from the county assessor or the listing for any home you consider.
Homeowners insurance in Texas
Budget roughly $2,600 a year. Hurricane and flood exposure dominates along the Gulf and South Atlantic coasts: windstorm deductibles, separate wind pools, and NFIP flood policies can add thousands per year, and lender-required coverage tightens within a few miles of the shoreline. Lenders require coverage before closing, and the premium is collected monthly in escrow, so get a quote before you make an offer.
How far a Texas income goes
The median Texas household earns about $79,721 a year. Under a 28% housing limit that supports a payment of $1,860, $424 short of the example. The Texas edition of the home affordability calculator solves for the price that income supports.
How to estimate your Texas mortgage payment
- Replace the example price with the home you are considering. The property tax figure won't update by itself; recalculate it from the listing or the county's rate.
- Enter your real down payment. Under 20% on a conventional loan, PMI is added until the balance reaches 78% of the price.
- Use a rate from a current loan estimate rather than an advertised rate, which often assumes points paid up front.
- Replace the $2,600 insurance estimate with a quote for the specific address.
- Add HOA dues if the home has them, then try extra principal to see how much interest an early payoff saves.
Methodology
Principal and interest use the standard fixed-rate amortization formula, M = L × r ÷ (1 − (1 + r)^−n). Property tax is the statewide effective rate applied to the example price; insurance is a typical statewide premium. PMI is charged at the stated annual rate until the balance first reaches 78% of the original price, when the Homeowners Protection Act requires it to be cancelled.
Texas figures are sourced statewide values, listed under Sources: Zillow's typical home value and Census income, rent, and property tax data. Insurance is an estimate. They are not quotes or appraisals; substitute your own numbers for a decision.
Sources
- Typical home value: Zillow Home Value Index (all homes, mid tier, seasonally adjusted), September 2026.
- Median household income: U.S. Census Bureau, American Community Survey 1-year estimates, table B19013, 2024.
- Median gross rent: U.S. Census Bureau, American Community Survey 1-year estimates, table B25064, 2024.
- Effective property tax rate: Median real estate taxes paid (B25103) ÷ median home value (B25077), Census ACS 1-year, the Tax Foundation's method, 2024.
- Homeowners insurance: Keystone estimate of a typical annual premium. Replace it with a quote for the address, 2026.
Read the full methodology, worked example, and caveats in the national Mortgage Calculator guide.
Texas FAQ
- What is the average mortgage payment in Texas?
- On a typical Texas home of $295,000 with 10% down and a 30-year fixed rate of 6.25%, the full payment comes to about $2,284 a month: $1,635 of principal and interest, $538 of taxes and insurance, and $111 of PMI. Your payment depends on the price, rate, and local tax bill.
- How much are property taxes on a Texas mortgage?
- Texas's effective property tax rate is about 1.31%, which adds $322 a month to the payment on a $295,000 home. Texas has no state income tax and one of the highest effective property tax rates in the US, levied by county, school district, and special districts; the homestead exemption applies only to a primary residence.
- How much income do I need to buy a home in Texas?
- To keep the example payment of $2,284 within the 28% housing guideline, a household needs about $97,872 a year of gross income, compared with a Texas median of $79,721. Other debts lower what a lender will approve.
- Does homeowners insurance raise my mortgage payment in Texas?
- Yes. Lenders collect it monthly in escrow alongside property tax. At a typical $2,600 a year, insurance adds $217 a month in Texas. Premiums vary by address and have risen quickly in many states, so quote it before you commit to a price.
Other state editions
Every state gets its own edition of the Mortgage Calculator, preloaded with that market's typical values, tax rates, and insurance costs: