See your full monthly payment — principal, interest, Texas property tax (1.63%), insurance, and PMI. All calculated in your browser. No email required.
Texas trades state income tax for some of the highest property taxes in the country — 1.63% on average, compared to the national average of 1.07%. On a $318,000 home, that's $432/month in property tax on top of your mortgage. First-time buyers get hit with sticker shock when they see the full PITI versus the P&I number alone.
The math: a $318,000 Texas home with 20% down ($63,600) at current rates runs about $1,713/month in principal and interest. Sounds manageable. But add $432/month in property tax and $132/month in homeowners insurance and your actual monthly cost is $2,277. That's $564/month more than the headline number — which is exactly what this calculator is built to show you before you fall in love with a listing.
Texas property taxes vary significantly by county. Travis County (Austin) runs around 1.80%, while some DFW suburbs hit 2.2% or higher. If you're shopping across county lines, run separate calculations with the actual local rate — a 0.5% difference on a $318,000 home is $132/month over the life of the loan.
State-specific answers. No fluff.
On the Texas median home price of $318,000 with 20% down and a 30-year loan at current rates, the monthly P&I is roughly $1,713. Add property tax at 1.63% ($432/month) and homeowners insurance (~$132/month) and your total PITI is approximately $2,277/month.
Texas has no state income tax. The state funds public services — especially schools — primarily through property taxes, which is why the effective rate of 1.63% is among the highest in the US. The trade-off is no income tax on your wages, but your housing costs reflect the full tax burden through the property tax bill.
Yes. Texas homeowners who occupy their property as a primary residence qualify for the homestead exemption — a $100,000 reduction in your home's assessed value for school district taxes (as of 2023). On a $318,000 home, this effectively reduces your taxable value by about $100,000, lowering your annual tax bill.
Conventional loans require 620+ (740+ for best rates). FHA loans accept 580 with 3.5% down. Texas also has programs through the Texas State Affordable Housing Corporation (TSAHC) and TDHCA for first-time buyers, which can include down payment assistance for qualifying income levels.
On a $300,000 Texas home with 20% down ($60,000) at 7.1% for 30 years: P&I = $1,614/month. Add 1.63% property tax ($407/month) and homeowners insurance (~$125/month) and your total monthly payment is approximately $2,146. If your down payment is under 20%, add PMI of roughly $160/month.
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