What are average mortgage rates in Texas in 2026?

Mortgage rates in Texas generally track national averages. As of 2026, expect 30-year fixed rates from 5.5% to 7.5% for good credit borrowers. Use CalcDeck's Texas mortgage calculator to model your payment at current rates.

How much are closing costs in Texas?

Closing costs in Texas typically range from 2% to 5% of purchase price, including lender fees, title insurance, and prepaid items. Use CalcDeck's Texas mortgage calculator to include closing costs in your calculation.

What are property tax rates in Texas?

Property tax rates in Texas range from 0.3% to 2.5% of assessed value. CalcDeck's Texas calculator includes property tax in your PITI payment.

What first-time homebuyer programs exist in Texas?

Texas offers down payment assistance, favorable-rate mortgages, and tax credits through state agencies. Use CalcDeck's Texas calculator to see how programs affect your payment.

How do I use the CalcDeck Texas mortgage calculator?

Enter home price, down payment, interest rate, and loan term. Adjust property tax and insurance to match Texas averages. Get instant monthly payment, total interest, and amortization schedule.

Texas Mortgage Calculator

Median home prices, property taxes, and monthly payment estimates for Texas homeowners.

Texas at a Glance

Median Home Price: $305,000
Property Tax Rate: 1.60%
Median Household Income: $73,035
Annual Property Tax: $4,880

Sources: Zillow ZHVI (2024), Tax Foundation (2023), US Census ACS (2023)

Monthly Mortgage Payment in Texas

Based on the Texas median home price of $305,000 at 6.7% interest (30-year fixed):

Payment Breakdown	20% Down	5% Down
Loan Amount	$244,000	$289,750
Principal and Interest	$1,574	$1,870
Property Tax (TX)	$407	$407
Homeowners Insurance	$125	$125
PMI	$0	$121
Total Monthly	$2,106	$2,522

How Much House Can You Afford in Texas?

Using the 28/36 rule (housing costs under 28% of gross income):

With 20% down, you need ~$90,263/year to afford Texas's median home
With 5% down, you need ~$108,090/year
Texas's median household income is $73,035

Texas insight: Texas has a high property tax rate of 1.60% — among the highest in the US.

Texas Housing Market Overview

Texas's housing market varies dramatically by metro. The statewide median of $305,000 masks Austin at $550,000, Dallas $385,000, Houston $320,000, San Antonio $295,000, and El Paso $205,000. Inventory is at 3.0 months—more balanced than peak frenzy. The median household income of $73,035 yields a price-to-income ratio of 4.2. The effective property tax rate of 1.60% is very high, pushing annual taxes to $4,880 on a median home—Texas has no state income tax, so property taxes fund schools and services. Wildfire risk is growing in Hill Country and West Texas, and hail is a constant threat.

First-Time Homebuyer Programs in Texas

The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program, providing 30-year fixed-rate FHA, VA, or conventional mortgages with down payment assistance up to 5% of the loan amount—capped at $15,250 on a $305,000 home. The Texas Homebuyer U program offers homebuyer education and counseling. TDHCA also administers the Mortgage Credit Certificate (MCC) program, providing a 20% federal tax credit on mortgage interest. Local programs include Austin's Homestead Preservation program ($15,000 grants) and Houston's Harvey Homebuyer Assistance Program ($30,000 for flood-affected areas). Income limits: Travis County caps at $105,000 for a two-person household; rural counties cap at $76,000.

Tips for Homebuyers in Texas

1) Texas's 1.60% property tax is very high—on a $305,000 home, taxes are ~$407/month despite no state income tax. 2) Hail damage is pervasive; always verify roof age and condition before buying. 3) The Austin market is competitive for homes under $500,000; expect escalation clauses. 4) Buy in fall/winter for less competition, but summer sees peak inventory. 5) Foundation issues are endemic in Texas's expansive clay soils (especially Dallas-Fort Worth and Houston); always get a structural engineer's inspection. 6) Flood risk is severe in Houston and coastal counties; check FEMA maps and budget for flood insurance even outside designated zones.

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Texas Mortgage FAQ

What is the median home price in Texas?

The median home price in Texas is approximately $305,000 as of 2024 (Zillow ZHVI). Your actual price will vary by city and neighborhood.

What is the property tax rate in Texas?

The effective property tax rate in Texas is approximately 1.60% (Tax Foundation). On a $305,000 home, that is about $4,880/year in property taxes.

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

Using the 28/36 rule with 20% down at 6.7%, you would need about $90,263/year to afford the median Texas home at $305,000. With 5% down (including PMI), about $108,090.

What will my monthly mortgage payment be in Texas?

On Texas's median home price of $305,000 with 20% down at 6.7%, your total monthly payment (P and I plus tax plus insurance) is approximately $2,106. With 5% down including PMI, about $2,522.

Data sources: Zillow ZHVI typical home values (2024), Tax Foundation effective property tax rates (2023), US Census Bureau ACS median household income (2023). Mortgage rate assumption: 6.7% APR 30-year fixed. This is an estimate — use our calculator for personalized numbers.