Texas Mortgage Calculator
Model a Texas mortgage using your own tax and insurance assumptions.
Loan Details
Freddie Mac PMMS, November 5, 2026. Conventional market benchmark, not an APR or lender quote.
Auto-fills available estimates after five digits. You can edit both costs below.
Monthly Costs
$560/month
$167/month
Buying a Home in Texas: The Property Tax Catch
Texas is famous for having absolutely zero state income tax, making it a massive draw for out-of-state remote workers. However, local municipalities fund their schools and services primarily through property taxes. Consequently, Texas has some of the highest property tax rates in the nation.
How High Are Texas Property Taxes?
While the national average property tax rate hovers around 0.99%, many counties in Texas (particularly around Austin, Dallas, and Houston) routinely see effective tax rates between 1.8% and 2.5%.
For example, if you buy a $500,000 home in Travis County with a 2.2% tax rate:
- You owe $11,000 every single year in property taxes.
- This adds nearly $916 to your monthly mortgage payment (the "T" in your PITI).
This is why using a localized Texas Mortgage Calculator is crucial. If you only look at Principal and Interest, you might severely underestimate your actual monthly housing cost. Simply type your targeted Texas ZIP code into our calculator above to fetch real localized tax estimates.
The Texas Homestead Exemption
Thankfully, Texas offers robust ways to legally lower your property tax burden, the most powerful being the Homestead Exemption.
- School District Tax Relief: By filing a Homestead Exemption on your primary residence, you automatically remove tens of thousands of dollars from your home's assessed value before school district taxes are calculated.
- The 10% Cap (The "Save Our Homes" Equivalent): The most important part of the Texas homestead exemption is that it caps the amount your assessed home value can increase to just 10% per year. In rapidly appreciating markets like Austin, this legal shield saves homeowners thousands of dollars annually.
- Disabled Veterans: Texas has incredibly generous 100% property tax exemptions for veterans with a 100% service-connected disability rating. If you qualify, your property taxes drop to $0.
Frequently Asked Questions
Are Texas property taxes paid monthly or yearly?
The county bills you yearly (usually due in January). However, almost all mortgage lenders require you to pay 1/12th of that annual bill every month into an "Escrow" account. The lender then pays the county on your behalf at the end of the year to ensure the home is never seized for tax delinquency.
Why are Texas closing costs slightly different?
Texas is one of the few states that does strictly regulate title insurance premiums. Meaning, you cannot "shop around" for a cheaper title insurance rate-the state sets the exact price algorithmically based on the purchase price of the home.
Continue your financial research
Use these closely related USFinNexus guides and tools to plan your next step.
Illustrative comparison scenarios
| Term | Monthly P&I | Scheduled interest |
|---|---|---|
| 10 years | $3,406 | $108,773 |
| 15 years | $2,613 | $170,398 |
| 20 years | $2,237 | $236,813 |
| 25 years | $2,026 | $307,686 |
| 30 years | $1,896 | $382,633 |
Educational scenarios, not quotes, approvals, investment forecasts or tax advice. See methodology and limitations.