Mortgage Calculator Texas

Compare loan types

The two most popular mortgage types are 30-year and 15-year fixed-rate loans. Each suits different financial situations. A 30-year mortgage offers lower monthly payments but results in more interest paid over time.

In contrast, a 15-year mortgage comes with higher monthly payments, as you're repaying the loan in half the time, but it saves you thousands in interest over the life of the loan. Depending on your budget and long-term goals, one option may be better for you than the other.

Watch the Video

How to Use the Mortgage Calculator Texas

Overview of Texas housing market

The Texas housing market is still very competitive, with cities like Austin, Dallas, and Houston seeing strong demand and higher home prices due to rapid growth. While prices in urban areas continue to rise, suburban and rural parts of Texas remain more affordable.

Texas continues to attract both homebuyers and investors due to its strong economy and population growth, particularly in areas surrounding major metropolitan hubs.

©Zillow, Inc. 2006 – 2024. Use is subject to the Terms of Use

Average property tax by county

Property tax rates in Texas vary by county, typically ranging from 1.6% to 2.3% of a home's value. For example, Harris County is around 2.13%, Dallas County 2.18%, and Tarrant County 2.26%. For a $400,000 home, this means annual taxes between $6,400 and $9,200 depending on the location.

Home Insurance in Texas

When buying a home in Texas, it's important to factor in the cost of home insurance, particularly given the state's exposure to natural disasters like tornadoes and hurricanes. Texas homeowners often face higher premiums than other states due to weather-related risks.

Key Factors Impacting Insurance Costs:

• Location: Homes in hurricane-prone or flood zones, especially along the Gulf Coast, typically incur higher insurance costs.
• Property Value: The more valuable your home, the higher your insurance premium will be.
• Additional Coverage: Standard policies don't cover flood damage, so homeowners in high-risk areas should consider adding flood insurance, particularly through.

Why It's Important

Being aware of these costs is essential for budgeting and preparing for the full financial picture of homeownership in Texas, helping you avoid unexpected expenses.

Important Economic Factors Affecting Texas

Texas has one of the largest and most dynamic economies in the U.S., driven by key factors like energy production, tech growth, and international trade. Understanding these factors is essential for anyone looking to invest or do business in the state.

• Energy Industry Leader

  Texas is a top producer of oil, gas, and renewable energy, particularly wind. Fluctuations in oil prices continue to impact Texas's economy, given its longstanding reliance on the fossil fuel industry.

• Rapid Population Growth

  Texas's rapidly growing population, especially in cities like Austin, Houston, and Dallas, is driving demand for housing, infrastructure, and jobs. This growth boosts local economies and attracts businesses, making Texas one of the fastest-growing states.

• Growing Tech Sector

  Austin, often called "Silicon Hills," has emerged as a major tech hub, attracting big tech companies and startups. The tech industry plays a vital role in innovation and job creation across the state, positioning Texas as a leader in the tech world

• Agriculture and Natural Resources

  Texas is a major agricultural state, particularly in cattle and cotton production. Agriculture remains the backbone of the state’s rural economy and contributes to both domestic and international trade, making it an essential part of Texas’s economic foundation.

• Global Trade Hub

  With its large port infrastructure and proximity to Mexico, Texas is a key player in global trade. The Port of Houston is one of the busiest in the country, driving significant economic activity and making Texas a central hub for international commerce.

Together, these factors create a robust and diverse economy that continues to attract both businesses and new residents to the state.

Mortgage Laws and Regulations in Texas

Texas has its own set of mortgage laws to protect both borrowers and lenders throughout the home-buying process. Here's a summary of the key regulations:

• Truth in Lending Act (TILA): Lenders must clearly disclose loan terms like interest rates and fees, ensuring transparency for borrowers.
• Homestead Protections: The Texas Constitution protects homeowners from forced sales by creditors, except in cases involving mortgage or tax liens.
• Foreclosure Procedures: Texas follows a non-judicial foreclosure process, requiring lenders to give 20 days' notice for missed payments, followed by a 21-day notice before the foreclosure sale.
• Community Property: Any property acquired during marriage is jointly owned by both spouses, even if the mortgage is in one name.

• Real Estate: Population growth in areas like Houston and San Antonio has led to high demand for housing and commercial spaces, making real estate a profitable investment. The state’s low taxes and business-friendly environment also attract companies and developers.
• Energy: While Texas is famous for oil and gas, it’s also becoming a leader in renewable energy. The state's wind and solar industries are rapidly expanding, presenting opportunities in both traditional and clean energy investments.
• Technology: Texas, particularly Austin, is home to a thriving tech scene. The state attracts startups, major tech companies, and substantial venture capital investment, creating opportunities in sectors like software, AI, and cybersecurity.
• Agriculture: Texas's agriculture sector, from cattle to cotton, is a significant part of its economy. Innovations in agricultural technology and sustainable farming practices present strong investment potential.
• Manufacturing & Trade: With its strategic location near Mexico and major ports like Houston, Texas is a critical hub for trade and logistics. The state’s growing manufacturing industry, driven by demand for goods and favorable trade policies, provides excellent opportunities.

Use our Mortgage Calculator Texas to estimate the rental income needed to cover your monthly loan payments and calculate how much you could earn by renting out your property. For more detailed opportunities, explore the Texas Economic Development website.

Texas Home Prices

Texas home prices have steadily increased in recent years due to growing demand, particularly in fast-growing cities like Austin, Dallas, and Houston. Despite this, Texas remains relatively affordable compared to other large states, offering diverse housing options.

The table shows price increases from 2022 to 2023, fueled by factors such as job growth and migration. Median home prices vary widely between urban and suburban areas, reflecting the state’s diverse real estate market.