Texas's thriving real estate market and unique financial landscape make using a mortgage calculator crucial for homebuyers. With no state income tax and varying property tax rates across the state, understanding your true monthly costs is essential. Our Texas mortgage calculator helps you navigate these factors, providing a clear picture of your mortgage payments, including principal, interest, property taxes, and insurance.
Calculate Your Texas Mortgage Payment
Enter the home price, down payment, and interest rate to see your estimated monthly payment including principal, interest, taxes, and insurance.
Calculator Tips for Texas Homebuyers
Get the most out of your mortgage calculation with these expert tips.
Compare Loan Terms
Try 15-year vs 30-year terms to find the right balance of payment size and total interest paid over the life of your loan.
Down Payment Impact
Increasing your down payment by even 5% can significantly reduce your monthly payment and help you avoid paying PMI altogether.
Include All Costs
Remember to budget for property taxes, homeowners insurance, and potential HOA fees when estimating your true monthly housing cost.
Get Exact Numbers
Contact NMHL for current rates specific to your credit profile and loan amount. Our calculators estimate — we can provide exact figures.
Turn Numbers Into Your New Home
This calculator gives you a solid starting point. When you are ready for exact numbers based on your credit profile and down payment, our loan officers provide personalized quotes — no obligation, no surprises.
Your Path to a Texas Mortgage
From calculator to closing — here is how it works.
Choose Your Program
Explore FHA, VA, conventional, and other loan types to find the best fit for your situation.
Get Pre-Approved
Submit a quick application to see what you qualify for — no impact to your credit score.
Calculate Your Payment
Use our calculator with your actual rate to see exactly what your monthly payment will be.
Close on Your Home
Our team guides you through closing with dedicated support at every step.
Loan Programs Available in Texas
Click a program to explore rates, requirements, and benefits.
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Understanding Texas Property Taxes and Their Impact on Your Mortgage
Texas is known for having some of the highest property taxes in the country, with an average effective rate of 1.68%. This means that on a $300,000 home, you might pay around $5,040 annually in property taxes, or about $420 per month. When using our mortgage calculator, it's crucial to factor in these costs to get an accurate picture of your monthly payment.
The good news is that Texas offers a homestead exemption, which can significantly reduce your taxable property value. By designating your primary residence as your homestead, you can exempt up to $100,000 from school district taxes. This can lead to substantial savings – potentially over $1,000 per year – directly lowering your monthly escrow payment.
Remember to factor in the homestead exemption when calculating your long-term property tax costs.
Texas-Specific Mortgage Programs and Assistance
Texas offers various programs to help homebuyers, particularly first-time buyers. The My First Texas Home program, administered by the Texas Department of Housing and Community Affairs, provides down payment assistance up to 5% of the loan amount. Additionally, many local governments and non-profits offer grants and forgivable loans to qualifying buyers.
- The My First Texas Home program offers competitive interest rates and down payment assistance.
- Local programs in cities like Houston, Dallas, Austin, and San Antonio provide additional assistance options.
- Veterans may have access to VA loans with favorable terms, including zero down payment options.
Using the Texas Mortgage Calculator Effectively
Our Texas mortgage calculator is designed to give you a comprehensive view of your potential monthly mortgage payment. To use it effectively:
- Enter your home price, down payment percentage, and loan term.
- Include Texas-specific property taxes (typically 1.60-1.80% of home value annually).
- Factor in homeowners insurance costs, which vary by location within Texas.
- Consider any additional costs like HOA fees or flood insurance if applicable.
By inputting these details, you'll get a more accurate estimate of your true monthly housing costs.
Texas Mortgage Regulations and Disclosures
Texas has specific regulations governing mortgage lending, including required disclosures for certain loan types. For instance, Texas law mandates a 12-day right of rescission on home equity loans, giving borrowers time to reconsider their decision.
When closing on your Texas home, be aware of these regulations and ensure you understand all the terms of your loan. Working with a knowledgeable lender can help navigate these requirements and ensure a smooth closing process.
Texas Mortgage Calculator FAQs
Texas property taxes are among the highest in the nation, averaging 1.68% of home value annually. This significantly impacts your monthly escrow payment. For example, a $300,000 home may have around $5,040 in annual property taxes, adding approximately $420 to your monthly payment.
The Texas homestead exemption reduces your taxable property value by $100,000 for school district taxes, potentially saving you $1,000 or more per year. This directly lowers your monthly escrow payment and overall housing costs.
Yes, Texas offers several first-time homebuyer programs, including the My First Texas Home program through the Texas Department of Housing and Community Affairs. These programs provide down payment assistance and other benefits to qualifying buyers.
Without state income tax, more of your gross income is available for mortgage qualification. This can increase your buying power compared to states with income tax. Use the mortgage calculator to see how this affects your monthly payment and affordability.
Conforming loan limits in Texas vary by county. While the baseline limit is $766,550 for a single-family home, many Texas counties have higher limits due to being classified as high-cost areas. Check the current limit for your specific county when using the mortgage calculator.
Texas Mortgage Resources
Ready to Buy a Home in Texas?
Get a personalized mortgage quote from NMHL. Our Texas-licensed loan officers are ready to help you find the best rate.