King County has the lowest median monthly mortgage payment in Texas at $190, while Travis County has the highest at $3,490. Your monthly mortgage payments can significantly impact both your short-term budget and long-term financial health, influencing your ability to save and invest for the future. Using MoneyGeek's mortgage calculator in Texas can help you estimate your monthly mortgage payment, determine which loan term suits your financial situation better, and lets you see how much interest you pay over your loan's lifetime.
By inputting your purchase details into the calculator, you can clearly see your financial commitment and make more informed decisions when you secure a mortgage.
Mortgage Calculator
Simply estimate your Texas loan payments, taxes and PMI.
Updated: Sep 4, 2024
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Key Takeaways
You can use the mortgage calculator in Texas to determine monthly mortgage payments. This may vary based on several factors, one of which is location. King County has the lowest median monthly mortgage payment at $190, compared to Travis County's highest at $3,490.
Using a mortgage calculator can help you find a monthly mortgage payment that fits your budget by adjusting loan terms or down payments, and estimate your total interest over the loan's life.
The average APR for a 30-year mortgage in Texas is 6.0%, and for a 15-year mortgage, it is 5.3%.
MoneyGeek uses publicly available data from Zillow for the rates on this page. Mortgage rates shift daily, and we take a snapshot to analyze rate information for Texas. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless otherwise stated, all rates are annual percentage rates (APRs).
See the sources cited for more details about data related to median mortgage payments, home prices, down payments and local tax rates.
Interest rate data was last updated in September 2024.
How to Use Our Texas Mortgage Calculator
MoneyGeek's mortgage calculator in Texas can help you calculate your monthly mortgage payments and determine your mortgage's affordability. You'll also understand your amortization schedule, giving you a clear financial path ahead.
Calculate Your Monthly Mortgage Payment
Your monthly mortgage payment is shaped by the home's sale price, down payment, and other variables. Let's walk through using Texas's mortgage calculator to get a clear picture of your financial commitments.
1
Home Price
The home price directly influences your monthly mortgage payment in Texas. A lower home price in King County, at a median of $31,700, means lower monthly payments than in Travis County, where the median home price is $598,600, according to the National Association of Realtors.
2
Down Payment
The size of your down payment influences your monthly mortgage payment by reducing the loan amount. Texas's median down payment is $23,125, according to ATTOM data from June 2024.
3
Annual Percentage Rate (APR)
Your APR impacts your monthly mortgage payment. The current mortgage rates in Texas change over time and vary between loan types. For example, the average APR for a 15-year fixed mortgage is 5.3%, and for a 30-year fixed mortgage, it's 6.0%.
4
Loan Terms
Shorter terms, like 15 years, often have higher monthly payments but result in less interest paid over the life of the loan. Conversely, a 30-year term typically has lower monthly payments but accrues more interest over time. Choosing the right term depends on your financial situation and goals.
SAMPLE MONTHLY PAYMENT CALCULATION IN TEXAS
Using the mortgage calculator in Texas, you can see that the monthly payment for a 30-year fixed rate mortgage on a $275,000 house after a 20% down payment is $1,319. This figure excludes additional costs such as HOA fees and property tax.
Choosing a 15-year repayment term for your home loan increases the monthly payment to $1,774. This adjustment raises short-term expenses but results in a total interest saving of $155,466 over the duration of the loan.
Determine Your Mortgage's Affordability
Buying a home is one of the most significant expenses you'll face, and your mortgage payments will take a substantial portion of your monthly income. Understanding how affordable your mortgage is can greatly affect your finances. MoneyGeek's mortgage calculator for affordability can help you determine this by simply inputting your monthly income and other monthly debts, such as car loans and student loans.
The calculator also shows your debt-to-income ratio, a critical metric for borrowers. This ratio helps you understand how much of your income goes toward debt payments, which is essential when planning to secure a mortgage. According to Experian, the average debt in Texas is $95,537, which translates to an average monthly debt of $7,961.
See Your Amortization Schedule
Mortgage amortization is the process of paying off a loan over time through regular payments. Key terms:
- Principal: The loan amount you borrow. Understanding this helps you see how much you owe.
- Interest: The cost of borrowing the principal. Knowing this shows the total cost of your loan
MoneyGeek's mortgage calculator allows you to see your amortization schedule and estimate the total interest you'll pay over the life of your loan in Texas. You can also see when your monthly payments begin to go more toward your principal versus your interest, which helps you understand your payment allocation over time.
Additional Mortgage Fees in Texas
When calculating your monthly mortgage payments in Texas, consider other mortgage fees that might impact your budget. Homebuyers should be aware that mortgage insurance and HOA fees can increase your monthly total. Additionally, property taxes and homeowners insurance are costs that can affect your overall budget.
Homeowners Insurance
Homeowners insurance protects your property and personal belongings from damage or theft. It also provides liability coverage if someone is injured on your property. The average homeowners insurance in Texas is $5,171 per year.
Property Tax
Property tax is a levy on real estate that homeowners must pay to the local government. It funds public services like schools and infrastructure. According to the Tax Foundation, Texas's effective property tax rate is 1.68%, ranking it 6th in the nation.
HOA Fees
HOA fees are payments to homeowners associations for property management, maintenance, and community amenities. These fees are typically paid monthly or annually.
Private Mortgage Insurance
Private mortgage insurance (PMI) protects lenders if a borrower defaults on a loan. It applies to conventional mortgages when the down payment is less than 20%. Borrowers must request cancellation once they reach 20% equity, or it will only be automatically removed at 22%.
How Much Is Private Mortgage Insurance in Texas?
The average APR for a 30-year fixed loan in Texas is 6.0%. For a 15-year fixed loan, it's 5.3%. Using MoneyGeek's PMI calculator, you can see that for a $275,000 home with a 10% down payment, borrowers with a credit score between 680 and 719 pay PMI worth $117 if they get a 30-year fixed rate loan. The amount becomes $115 if they opt for a 15-year loan instead.
MoneyGeek's mortgage calculator in Texas allows you to see your amortization schedule and determine when you can stop paying for PMI:
1
Calculate your monthly mortgage payment
Input the necessary information, such as the home's price, down payment, and mortgage rate in Texas. If you already know some fees you need to cover, such as property tax or HOAs, include these. If not, leave them blank but know that you'll still have to pay for these. Run the calculator and get your total monthly payment.
2
Calculate for your target equity
You can request that PMI be canceled when you've accumulated at least 20% equity in your home — this will be your target equity. To calculate your target equity, multiply your home's price by 20%.
3
Determine the remaining equity required
Your down payment already contributes towards the 20% equity you need to request your PMI's cancellation. Deduct your down payment from your target equity to get the remaining amount.
4
Establish a timeline
Go to the third tab of the mortgage calculator. Move the slider until the principal paid exceeds your remaining equity required — that's the year you can stop paying for PMI.
Private Mortgage Insurance Calculator
Calculate your monthly private mortgage insurance (PMI) premium based on your credit score and down payment.
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WHEN CAN YOU CANCEL YOUR PMI?
You put in an 8% down payment for a home in Texas priced at $350,000. With an average APR of 6.0% for a 30-year fixed rate loan, your monthly mortgage payment is $1,931.
20% of $350,000 is $70,000 — that's how much you need in total to request your PMI's cancellation. Subtracting $28,000 (8% of $350,000) from $70,000 gives you $42,000 — that's how much you still need to pay to hit 20% equity. Assuming that your home's value remains the same over the years and that you consistently pay your mortgage, you can request your lender to cancel your PMI before the end of year nine.
How to Lower Your Monthly Mortgage Payment in Texas
Your mortgage is probably the biggest expense you have each month. For a $225,000 loan in Texas at 6.0% interest, you'll pay $1,319 monthly. However, if you can reduce your APR by 0.25%, your new monthly mortgage payment becomes $1,284. That $35 difference in monthly payment adds up — over a 30-year fixed-rate mortgage, you'll save $12,654 in total interest.
This example highlights the value of finding ways to lower monthly mortgage payments. Here are some strategies to consider:
Improve your credit score
Your credit score affects your mortgage payment. In Texas, if you put in a down payment between 5% to 20% of the home's sale price, the average APR for a 30-year fixed rate mortgage is 6.5% if your credit score is above 740. However, if your credit score is under 680, the average APR becomes 7.4%. This change in APR makes your monthly mortgage payments go from $1,391 to $1,523.
Save for a bigger down payment
Putting a bigger down payment may result in lower monthly mortgage payments. For a $225,000 loan in Texas, putting 8% down makes your APR 6.7%, resulting in a monthly mortgage of $1,633. Increasing your down payment to 25% puts your APR at 6.2% and a monthly mortgage of $1,263.
Choose a longer loan term
A longer loan term affects your monthly mortgage payment. A 15-year fixed rate mortgage in Texas has an APR of 5.3%. A 20% down payment makes your monthly mortgage payment $1,774. Compare this to $1,319, which you'll have to pay each month if you change loan terms to 30 years, even if your APR increases to 6.0%.
Explore homeownership assistance programs
You can find homeowners assistance programs in Texas that may help with your mortgage costs. Institutions like the Texas Department of Housing & Community Affairs and the Texas State Affordable Housing Corporation offer various forms of assistance to eligible homeowners.
FAQ: Mortgage Calculations in Texas
Using a mortgage calculator can raise questions for potential borrowers, especially in Texas. We've addressed commonly asked questions to help you understand your mortgage options.
How much mortgage can I afford in Texas?
Your mortgage affordability in Texas depends on your debt-to-income ratio (DTI). Lenders typically recommend a DTI ratio below 36%.
What is the average mortgage debt in Texas?
The average mortgage debt in Texas is $230,940, according to Experian (2023).
How much down payment do I need to purchase a house in Texas?
The ideal down payment is 20%, but it varies by loan type. Conventional loans often require 3-20%, FHA loans require as little as 3.5%, while VA loans and USDA loans usually don't require a down payment.
Do you really need private mortgage insurance in Texas?
In Texas, PMI costs around $115 for a 15-year loan and $117 for a 30-year loan. PMI is generally required if your down payment is less than 20%.
What's the effective tax rate in Texas?
The effective property tax rate in Texas is 1.68%, ranking 6th nationally.
What is the median home price in Texas?
The median home price in Texas varies by county. King County has the lowest median home price at $31,700, while Travis County has the highest at $598,600.
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About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
sources
- ATTOM. "Texas Real Estate and Property Data." Accessed September 12, 2024.
- Experian. "Average U.S. Mortgage Debt Increases to $244,498 in 2023." Accessed September 12, 2024.
- Experian. "Experian Study: Average U.S. Consumer Debt and Statistics." Accessed September 12, 2024.
- National Association of Realtors. "County Median Home Prices and Monthly Mortgage Payment." Accessed September 12, 2024.
- Tax Foundation. "Property Taxes by State and County, 2023." Accessed September 12, 2024.
