Texas Mortgage Calculator & Rates Guide (2026)
Estimate your monthly payment on a Texas home with Texas-specific property tax, insurance, PMI, and HOA. Median home price in Texas is roughly $340,000, and the average effective property tax rate is about 1.63%.
Texas has no state income tax, but funds public services largely through property taxes — annual property tax often exceeds homeowners insurance, even at Texas's high insurance rates. The calculator below is pre-filled with Texas's median home price and an estimated property tax bill of roughly $5,542 per year (about 1.63% of $340,000). Adjust the home price, down payment, and rate to match your real-world Texas scenario — your monthly payment updates instantly.
Loan details
Payment breakdown
- Principal & Interest$1,764
- Property Tax$462
- Home Insurance$375
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Texas mortgage and housing snapshot
| Median home price | $340,000 |
|---|---|
| Average effective property tax rate | 1.63% of home value |
| Estimated annual property tax on median home | $5,542 (~$462/mo escrowed) |
| Average homeowners insurance premium | $4,500 / year |
| 2026 conforming loan limit (most counties) | $806,500 |
| Transfer / recording tax | Texas has no state real estate transfer tax — buyers pay only standard county recording fees, one of the lowest closing-cost burdens for transfer-related taxes. |
| Homestead / property tax cap | Texas offers a $100,000 Homestead Exemption from school district property taxes for primary residences, with additional exemptions for homeowners 65+ and disabled, plus a 10% annual cap on appraised value increases for homestead properties. |
Figures are 2025/2026 approximations from public data (Census, NAR, FHFA, NAIC, Tax Foundation). Use them for planning; confirm exact tax bills, insurance, and conforming limits with your lender, insurer, and county assessor.
Why Texas's housing math is different
Property tax burden. Texas's average effective property tax rate of about 1.63% of home value sits well above the U.S. national average of roughly 1.0%. Texas offers a $100,000 Homestead Exemption from school district property taxes for primary residences, with additional exemptions for homeowners 65+ and disabled, plus a 10% annual cap on appraised value increases for homestead properties. On the median Texas home, that translates to roughly $5,542 a year — money that's escrowed into your mortgage payment whether you notice it or not.
Insurance and disaster risk. The typical Texas homeowners policy runs about $4,500 per year. That's well above the national average — severe weather and natural-disaster exposure are real cost drivers in Texas, and many lenders also require separate flood or wind/hail policies in higher-risk areas.
Closing-cost reality. Texas has no state real estate transfer tax — buyers pay only standard county recording fees, one of the lowest closing-cost burdens for transfer-related taxes. Add roughly 2-3% of the price for typical lender fees (origination, appraisal, title, escrow), and Texas buyers should plan for total closing costs in the 3-5% range on top of the down payment.
Loan-limit context. The 2026 conforming loan limit for most counties in Texas is $806,500. The median Texas home price sits comfortably below this ceiling, so most buyers can use a standard conforming loan rather than a jumbo.
Common loan types in Texas
The default for most Texas buyers with 5%+ down and a 620+ credit score. Loans up to $806,500 (most counties) avoid jumbo pricing. PMI is required under 20% down and auto-cancels at 22% equity.
Backed by the Federal Housing Administration. Low 3.5% down with credit scores down to 580. Popular with first-time Texas buyers, but FHA mortgage insurance (MIP) usually stays for the life of the loan unless you put 10%+ down.
Zero-down loans for eligible active-duty service members, veterans, and qualifying surviving spouses. No PMI and competitive rates. Texas has a large veteran population, and VA loans are heavily used here.
Zero-down loans for buyers in USDA-designated rural and many suburban areas with moderate incomes. Texas's urban metros are usually outside USDA-eligible zones, but smaller-town and suburban-fringe properties may still qualify.
Run any of these scenarios in the calculator above by adjusting the down payment and rate. For a side-by-side, see our FHA vs. conventional, VA loan, and USDA loan guides.
Texas mortgage FAQ
What are typical mortgage rates in Texas in 2026?
Mortgage rates in Texas closely track national averages because most home loans are sold to Fannie Mae, Freddie Mac, or government-backed agencies that price loans on a national basis. Your actual rate depends far more on your credit score, down payment, loan term, and discount points than on the state you live in. Use the calculator above with your target rate to see how a small rate move changes your Texas monthly payment.
How much is property tax on a typical home in Texas?
Texas's average effective property tax rate is approximately 1.63% of home value. On a median $340,000 home in Texas, that works out to roughly $5,542 per year, or about $462 per month escrowed into your mortgage payment. Actual bills vary by county and city.
What is the 2026 conforming loan limit in Texas?
For most counties in Texas, the 2026 conforming loan limit for a one-unit home is $806,500. Loans above that are 'jumbo' loans and typically have stricter credit and down-payment requirements. Some high-cost counties in Texas may use a higher limit set by the FHFA — check your specific county before locking a rate.
How much homeowners insurance should I budget for in Texas?
The average annual homeowners insurance premium in Texas is roughly $4,500. Coastal, wildfire, hail, and flood-prone areas can be substantially higher. Your lender will require proof of coverage at closing, and the premium is typically escrowed monthly along with property tax.
Do I have to pay PMI on a Texas mortgage?
PMI rules are federal, not state-specific. Most conventional Texas mortgages require private mortgage insurance when your down payment is below 20% of the home's price, typically 0.3%-1.5% of the loan amount per year. PMI auto-cancels at 22% equity per the federal Homeowners Protection Act. FHA loans use MIP instead, and VA and USDA loans skip PMI entirely.
What transfer or recording taxes do Texas buyers and sellers pay?
Texas has no state real estate transfer tax — buyers pay only standard county recording fees, one of the lowest closing-cost burdens for transfer-related taxes.
Is there a homestead exemption in Texas?
Texas offers a $100,000 Homestead Exemption from school district property taxes for primary residences, with additional exemptions for homeowners 65+ and disabled, plus a 10% annual cap on appraised value increases for homestead properties.
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Ready to find your real rate?
Compare personalized rates from top lenders. Most checks are a soft credit pull only.
Compare 5+ Lenders
See personalized rate quotes from multiple top lenders in one place.
- ✓Soft credit pull only
- ✓5+ competing rate quotes
- ✓Free, no obligation
Get Your Rate in 60 Seconds
Modern, fully online lender with fast pre-approvals.
- ✓100% online application
- ✓Pre-approval in minutes
- ✓No origination fees on most loans
America's Largest Mortgage Lender
Established direct lender with a full range of loan products.
- ✓Wide loan-product selection
- ✓Full-service support
- ✓Highly rated for borrower satisfaction
Advertiser disclosure: cards above are sponsored. We may earn a commission when you compare lenders through our partners — at no cost to you. Compensation does not influence which lenders are shown.