Texas Mortgage Calculator
Estimate your monthly Texas mortgage payment including local county property taxes, homeowners insurance, and your complete 30-year amortization schedule.
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How Texas mortgage payments work
Buying a home in the Lone Star State involves a financial dynamic unlike almost any other state in the country. Because Texas levies no state personal income tax, local municipalities, school districts, and county hospital systems rely heavily on ad valorem real estate taxes to fund public services. As a result, Texas carries an effective property tax rate averaging 1.60% to 2.15%, ranking among the highest in the entire United States.
When financing a home in Texas, your monthly housing payment is rarely just principal and interest. Mortgage lenders require borrowers to fund an escrow account that collects one-twelfth of your estimated annual property taxes and homeowners insurance every month. On a typical $350,000 Texas mortgage, property taxes and insurance add over $700 every single month to your payment, transforming a baseline $2,212 principal and interest bill into a $2,937 total PITI obligation.
Texas homeowners can achieve substantial savings by taking advantage of statutory property tax relief programs. The Texas General Residence Homestead Exemption exempts up to $100,000 of your home's appraised value from school district taxation, and caps annual appraisal increases on primary residences at 10%. Additionally, Texas Veterans Land Board (VLB) home loans provide discounted interest rates for qualifying military veterans across Texas.
This calculator models the standard level-payment amortization schedule used by conventional, FHA, and VA lenders across Texas. Enter your specific purchase price, interest rate, and local county tax rate to project your exact monthly escrow obligations, lifetime interest charges, and payoff date.
The Texas PITI calculation formula
Your total monthly payment in Texas combines fixed level amortization with monthly escrow reserves for county taxes and hazard insurance:
| Symbol | Meaning |
|---|---|
P |
Loan principal balance after down payment ($350,000 in baseline example) |
i |
Monthly interest rate (quoted annual rate divided by 12) |
n |
Total scheduled monthly payments (360 months for a 30-year term) |
Tax |
Annual Texas ad valorem property tax (averaging $6,300 on a $350,000 home) |
At exactly 0% interest, the principal and interest formula resolves to P ÷ n. Escrow fees are estimated based on county averages.
Worked Texas mortgage payment example
A $350,000 30-year fixed-rate mortgage in Texas at 6.50% interest with $6,300 in annual property taxes (1.80%) and $2,400 in annual insurance ($200/mo) produces the following breakdown:
| Payment Component | Monthly Amount |
|---|---|
| Total monthly payment (PITI) | $2,937.24 |
| Principal & interest portion | $2,212.24 |
| County property tax (monthly escrow) | $525.00 |
| Homeowners insurance (monthly escrow) | $200.00 |
| Total interest over 30 years | $446,405.71 |
| Total payments made over 30 years | $796,405.71 |
Property taxes and insurance represent over 24% of the total monthly payment in this Texas scenario. Applying for the Texas Homestead Exemption can reduce the taxable value and lower your monthly escrow requirement by $80 to $150 per month.
Estimates only. Your lender's figures may differ because of fees, escrow and rounding.
Tips for Texas homebuyers
File for the Texas Homestead Exemption immediately
As soon as you occupy your Texas home as your primary residence, file an application with your county appraisal district (CAD). Recent legislation increased the homestead school tax exemption to $100,000, saving typical homeowners between $1,000 and $1,500 annually in real estate taxes.
Protest your county appraisal every spring
Texas county appraisal districts release new assessed values each April. You have until May 15 (or 30 days after notice) to file a formal appraisal protest. Challenging your valuation with recent comparable sales or evidence of deferred maintenance frequently lowers your tax assessment.
Review windstorm and hail insurance deductibles
Texas weather patterns result in higher-than-average hazard insurance premiums. Many Texas policies feature separate percentage-based deductibles (typically 1% or 2% of the dwelling value) for hail and wind damage rather than a flat $1,000 deductible. Ensure your emergency fund can cover this out-of-pocket gap.
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Frequently asked questions
Why are Texas property taxes so much higher than other states?
Texas has no state personal income tax, meaning the state government does not collect income taxes from residents. Consequently, local governments, school districts, and county municipalities depend almost entirely on property taxes and local sales taxes to fund schools, emergency services, roads, and infrastructure.
How does the Texas Homestead Exemption reduce my mortgage payment?
The Homestead Exemption deducts up to $100,000 from your property's assessed value for school district taxation, and caps annual appraisal increases at 10%. Your lender re-evaluates your escrow account annually during the escrow analysis, lowering your required monthly tax payment once the exemption takes effect.
What credit score is needed for a Texas mortgage?
Conventional mortgages in Texas typically require a minimum FICO credit score of 620, while FHA loans allow scores as low as 580 with a 3.5% down payment. Texas Veterans Land Board (VLB) loans generally require a 620 credit score for military veterans seeking discounted state financing.
Can Texas property taxes be deducted on federal income taxes?
Yes, real estate property taxes paid on a primary residence in Texas are deductible on federal income tax returns if you itemize deductions. However, federal tax law caps the total state and local tax (SALT) deduction at $10,000 per household ($5,000 if married filing separately).