Tools
Mortgage calculator
Estimate a monthly payment. Remember Texas property taxes and insurance are a meaningful part of the number here, so budget for the full payment, not just principal and interest.
Calculator provided by mortgagecalculator.org. Estimates only. Confirm figures with your lender.
Budget the whole payment, not the loan
The calculator estimates principal and interest. In Texas that is consistently the part of the payment buyers overestimate the importance of, because the other components are larger here than in many states.
Texas has no state income tax and funds local services primarily through property tax, so effective rates run higher than the national norm. Insurance also prices differently on the Gulf Coast, and flood coverage is separate from a standard homeowner's policy.
Many Houston-area communities sit inside a Municipal Utility District, a special district that levies its own property tax to fund water, sewer and drainage. MUD rates vary between neighbouring subdivisions and generally decline as the district's bonds are paid down, so two similar homes a mile apart can carry noticeably different monthly costs.
Ask a lender for the full figure
Any calculator, including this one, gives an estimate. A lender will quote the actual monthly figure including taxes, insurance and any mortgage insurance, based on the specific property and your credit profile.
Because tax rates vary by district and MUD, the same loan amount can produce meaningfully different payments on two homes a few miles apart. Compare the total monthly cost rather than the purchase price.
Common questions
Questions people actually ask
- Why is my Texas mortgage payment higher than the calculator says?
- The calculator estimates principal and interest only. Texas property taxes fund local services in place of a state income tax, so they are a large share of the payment, and Gulf Coast insurance plus any MUD tax add to it.
- Is flood insurance included in a homeowner's policy?
- No. Flood coverage is a separate policy. Given how much risk varies street by street in this region, get a quote for the specific address rather than assuming the neighbourhood's general reputation applies.
- How much should I budget beyond principal and interest?
- It depends on the taxing districts the property sits in, so it varies by address rather than by city. Ask a lender for a full payment estimate on the specific home before setting your budget.