Mortgage Calculator in Texas

Calculate your monthly mortgage payment in Texas using the 2026 median home price of $342K and current local rates. Adjust the inputs below. Formula shown, sources cited — no account required.

Buying a home in Texas means navigating one of the country's sharpest trade-offs in real estate finance: no state deed transfer tax, which is unique among large states, but property taxes that average 1.80% — among the highest in the nation. On a median home priced at $342,000, that 1.80% adds roughly $513 per month in property taxes alone, a figure that significantly inflates the true monthly housing cost compared to the sticker mortgage payment. The median home price of $342,000 reflects the full Texas market, but prices in Austin, Dallas, and Houston run well above that figure. First-time buyers have access to the My First Texas Home program and TSAHC Down Payment Assistance, both of which help reduce the upfront cash burden. With average closing costs at 1.4% and a 10% down payment, a median buyer needs roughly $39,000 at the table before the loan funds. Use a mortgage calculator with the current 6.51% average rate to see the real all-in monthly payment, including taxes and insurance.

ℹ

Texas is one of only 9 states with no income tax, which increases how much of your salary is available for your mortgage payment.

Know your real number before you decide.

Free. No email. The math is right there.

See all 20 calculators →

Texas Housing Market at a Glance (2026)

$342K

Median Home Price

6.51%

Avg Mortgage Rate

1.8%

Property Tax Rate

10%

Typical Down Payment

Buying a Home in Texas: Costs to Know

Average closing costs1.4% of purchase price

On a $342K home, closing costs â‰ˆ$4,788

Median household income$79,721/yr

State income tax (top rate)None

First-Time Buyer Programs in Texas

Texas offers state-sponsored programs that can reduce your down payment or closing costs:

✓My First Texas Home
✓TSAHC Down Payment Assistance

Buying a Home in Texas: No Income Tax Advantage

A standard mortgage payment in Texas is calculated using the amortization formula:M = P[r(1+r)^n] / [(1+r)^n - 1]

Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. On a $342K home in Texas with a 10% down payment at 6.51% over 30 years, your principal and interest payment comes to approximately $1,948/month— not including property taxes or homeowner's insurance.

Texas's property tax rate of 1.8% adds roughly $513/month to your total housing cost on a $342K home. This rate is above the national average of ~1.1%, so factor it carefully into your budget.

Texas vs. National Average

Metric	Texas	National Avg
Median Home Price	$342,000	$420,000
Property Tax Rate	1.8%	1.07%
Avg Mortgage Rate	6.51%	6.85%
Cost of Living Index	91.1	100

Questions You Might Ask — Mortgage Calculator in Texas

What is the average mortgage payment in Texas?

Based on the median home price of $342K in Texas with a 10% down payment and 6.51% rate (30-year fixed), the estimated monthly principal and interest payment is approximately $1,948. Adding property taxes (~$513/mo) and homeowner's insurance, total PITI is typically $2,611–$2,711/month.

What is the property tax rate in Texas?

Texas has an average effective property tax rate of 1.8%. On the median home price of $342K, that equals roughly $6,156 per year — or $513 added to your monthly mortgage payment. This is above the national average of ~1.1%, so budget carefully.

How much down payment do I need to buy a home in Texas?

The typical down payment in Texas is 10% — about $34,200 on the median $342K home. Conventional loans require as little as 3% down; FHA loans allow 3.5%. First-time buyers may also qualify for assistance through programs like My First Texas Home.

What are closing costs in Texas?

Average closing costs in Texas are approximately 1.4% of the purchase price — about $4,788 on the median $342K home. Closing costs include lender origination fees, title insurance, escrow, prepaid interest, and government recording fees.

What income do I need to afford the median home in Texas?

To afford the $342K median home in Texas under the 28% housing-cost rule, you need a gross monthly income of at least $9,325 — roughly $112K/year. The median household income in Texas is $79,721.

Data Sources & Methodology

State data sourced from the National Association of Realtors (median home prices), Tax Foundation (property tax rates, income tax), Freddie Mac PMMS (mortgage rates), ATTOM Data Solutions (closing costs), and U.S. Census Bureau ACS (household income). Last updated 2026.