Loan balance over time
| Total of 360 payments | $730,402 |
| Principal | $250,400 |
| Interest | $324,122 |
| Taxes | $123,000 |
| Insurance | $32,880 |
| HOA fees | $0 |
What these numbers come from
- Median home value
- $313,200
- Median tax bill
- $4,108
- Effective tax rate
- 1.31%
- Rank of 51
- 8th highest
Texas taxes property at about 1.31% of value against 0.89% nationally. On a $313,000 home that is $110 a month more than the same house would cost in taxes at the national rate. Rates are set by counties, cities and school districts, so your own bill will differ from the state median — put your actual figure in the property tax field and the payment updates.
Tax and home value figures: U.S. Census Bureau, American Community Survey 2024 1-year estimates. Insurance is estimated at 0.35% of home value per year — there is no comparable public per-state dataset, so treat it as a placeholder and replace it with your own quote. The interest rate is the national Freddie Mac 30-year average of 6.58%; this site does not publish state-level rate quotes.
Monthly cost across Texas home prices
20% down, 30-year fixed at 6.58%, with Texas property tax of 1.31% and estimated insurance.
| Home price | Loan | P&I | Tax/mo | Full payment |
|---|---|---|---|---|
| $188,000 | $150,400 | $959 | $205 | $1,219 |
| $251,000 | $200,800 | $1,280 | $274 | $1,627 |
| $313,000 median | $250,400 | $1,596 | $342 | $2,029 |
| $392,000 | $313,600 | $1,999 | $428 | $2,541 |
| $470,000 | $376,000 | $2,396 | $513 | $3,047 |
The gap between the P&I column and the last one is what a mortgage quote leaves out. In Texas taxes alone add $342 a month on a median-priced home.
Amortization schedule
| Date | Principal | Interest | Tax, Ins. & HOA | Balance |
|---|---|---|---|---|
| Aug | $223 | $1,373 | $433 | $250,177 |
| Sep | $224 | $1,372 | $433 | $249,953 |
| Oct | $225 | $1,371 | $433 | $249,728 |
| Nov | $227 | $1,369 | $433 | $249,501 |
| Dec | $228 | $1,368 | $433 | $249,273 |
| 2026 | $1,127 | $6,853 | $2,165 | $249,273 |
| Jan | $229 | $1,367 | $433 | $249,044 |
| Feb | $230 | $1,366 | $433 | $248,814 |
| Mar | $232 | $1,364 | $433 | $248,582 |
| Apr | $233 | $1,363 | $433 | $248,350 |
| May | $234 | $1,362 | $433 | $248,116 |
| Jun | $235 | $1,361 | $433 | $247,880 |
Refinancing in Texas
Texas writes its home equity rules into the state constitution, and they are stricter than elsewhere. A cash-out refinance is capped at 80 percent of the home value, fees are limited, and once a loan is treated as a Section 50(a)(6) home equity loan it keeps that character even if you refinance again. A plain rate-and-term refinance avoids those limits entirely.
Work the break-even with the refinance calculator, or check this week’s national average rates.
Texas home loans in detail
Texas Mortgage Overview
Texas has always been a popular place to live. It has a diverse culture, affordable housing, and incredible scenery and weather. With the average housing prices around $172,000, it's easy to see why 28 million people live here.
If you're ready to buy a home in Texas, here are your loan options.
Texas conventional loans
If you have great credit, apply for a conventional loan. You need just a 660 credit score and a 3
- 5 percent down payment. Borrowers pay PMI with less than 20 percent down on the home, but the rates are affordable. You can cancel PMI once you owe less than 80 percent of the home's value. Conventional loans don't have hard requirements, with a 36 - 40 percent debt ratio and stable income, you could get some of today's best rates.
Texas FHA loans
If you can't get a conventional loan, look at the FHA loan. You don't need perfect credit. Borrowers secure loans with credit scores of 580 and 3.5 percent down or 500 - 579 and 10 percent down. Either way, you're on your way to owning your first home. FHA loans have great rates. You pay mortgage insurance for the life of the loan, but it's often worth it.
Texas VA loans
Military veterans can get 100 percent financing with a VA loan. The credit score requirements are low (620) and the debt ratio requirement is as high as 50 percent. There is not any mortgage insurance, but you will pay an upfront funding fee for the VA loan.
Texas USDA loans
USDA loans are for low to moderate-income families who don't qualify for the above loans. USDA loans are for borrowers with credit scores of at least 640 and a debt ratio of 41 percent or less. It's a great program for first-time homebuyers or anyone who hasn't owned a home in the last three years.
First-Time Homebuyer
Programs in Texas
My First Texas Home
This 30-year low interest loan and up to 5 percent of the loan amount in down payment assistance, you can buy your first home. You must meet the income guidelines and have a minimum 620 credit score to qualify.
Tax Mortgage Credit Certificate Program
With the MCC you get a dollar-for-dollar tax credit on mortgage interest paid for the year for the life of your loan. You can deduct up to $2,000 per year which puts more money in your pocket for homeownership costs.
Home for Texas Heroes
If you work in public service, you may qualify for the Homes for Texas Heroes programs which provides a 30-year fixed-rate mortgage and down payment assistance up to 5 percent of the loan amount. Teachers, police officers, veterans, firefighters, and corrections officers are among the eligible applicants.
Texas mortgage FAQ
- How much is property tax on a home in Texas?
- Texas homeowners pay an effective property tax rate of about 1.31 percent of home value — the 8th highest of the 50 states and DC. On the state's median home value of $313,200 that works out to roughly $4,100 a year, or $342 a month added to the mortgage payment. The figures come from the Census Bureau's American Community Survey 2024 1-year estimates; your own bill depends on the county and city rates where the home sits.
- What is the monthly payment on a median-priced Texas home?
- At $313,000 with 20 percent down and the current 6.58 percent national 30-year fixed average, principal and interest come to about $1,596 a month. Adding Texas property tax of roughly $342 a month and an estimated $91 of homeowner insurance brings the full payment to around $2,029.
- Which mortgage loans can you get in Texas?
- Texas offers conventional loans (660 credit score, 3 to 5 percent down, 36 to 40 percent debt ratio), FHA loans (580 score with 3.5 percent down or 500-579 with 10 percent down), VA loans with 100 percent financing, a 620 score, and debt ratios as high as 50 percent, and USDA loans for low to moderate-income buyers with a 640 score and a 41 percent debt ratio or less.
- What first-time buyer programs are offered in Texas?
- My First Texas Home pairs a 30-year low-interest loan with down payment assistance of up to 5 percent of the loan amount for buyers with at least a 620 credit score who meet income guidelines. The Mortgage Credit Certificate program provides a dollar-for-dollar tax credit on mortgage interest for the life of the loan, and Homes for Texas Heroes gives public servants a 30-year fixed rate plus up to 5 percent assistance.
- What credit score do Texas lenders look for?
- It varies by loan type. Conventional loans in Texas generally require a 660 credit score, FHA loans accept 580 with 3.5 percent down or 500 to 579 with 10 percent down, VA loans set the bar around 620, and USDA loans require at least 640. The My First Texas Home program also asks for a minimum 620 score.
Property tax in every state
Effective rate on owner-occupied value, highest bills first in each column.
- Alabama0.38%
- Alaska1.06%
- Arizona0.43%
- Arkansas0.52%
- California0.71%
- Colorado0.49%
- Connecticut1.66%
- Delaware0.47%
- District of Columbia0.63%
- Florida0.75%
- Georgia0.74%
- Hawaii0.27%
- Idaho0.43%
- Illinois1.92%
- Indiana0.74%
- Iowa1.29%
- Kansas1.25%
- Kentucky0.71%
- Louisiana0.53%
- Maine0.91%
- Maryland0.95%
- Massachusetts1.00%
- Michigan1.18%
- Minnesota1.02%
- Mississippi0.65%
- Missouri0.79%
- Montana0.69%
- Nebraska1.42%
- Nevada0.47%
- New Hampshire1.46%
- New Jersey1.89%
- New Mexico0.63%
- New York1.45%
- North Carolina0.61%
- North Dakota0.96%
- Ohio1.22%
- Oklahoma0.75%
- Oregon0.78%
- Pennsylvania1.16%
- Rhode Island1.07%
- South Carolina0.45%
- South Dakota1.02%
- Tennessee0.45%
- Utah0.49%
- Vermont1.42%
- Virginia0.71%
- Washington0.79%
- West Virginia0.52%
- Wisconsin1.25%
- Wyoming0.57%