Just how much can homebuyers expect to pay their mortgage in Texas every month?
Based on existing median home values in Texas and a current mortgage interest rate of 3.5%, we’ve calculated the average mortgage payment and all-in housing costs for a Texas homebuyer. For a free, fully customized monthly mortgage payment scenario, don’t hesitate to reach out to our mortgage experts for assistance.
Average Texas Monthly Mortgage Payment In 2022
Mortgage rates are continually fluctuating due to various factors that influence them. That said, there has been a declining trend recently, resulting in very low mortgage rates historically.
As of January 2022, a 30-year fixed-rate mortgage had an interest rate of about 3.56%. Meanwhile, home values in Texas have increased over the past year and Zillow predicts they will continue to rise in the coming years.
Calculating the average mortgage payment for Texas homebuyers can easily be done using a mortgage calculator to calculate the difference between Texas’ average home value and the mortgage rates recorded by Freddie Mac.
Breakdown Of A Monthly Mortgage Payment
Home Values
According to Zillow, the median home price in Dallas, Texas is about $294,000, as of December 2021. Other sources offer slightly different prices, but this will work for our calculations.
Mortgage Rates
According to Freddie Mac’s market survey, the average rate for a 30-year fixed-rate mortgage is about 3.5%. The 30-year loan is one of the most popular financing options for buyers in Dallas, making it the perfect scenario to calculate our example.
View mortgage rates for May 16, 2026
Down Payment
According to a study done by the National Association of Realtors, the national average down payment is around 10%. If we apply this percentage to the median home price above, we get a down payment of $29,400.
Loan Amount
Once we subtract the down payment from the home price, we arrive at a loan amount of $264,600.
Loan Payment
So, how much is the average monthly mortgage payment? Using the $264,600 loan amount we calculated above, we amortize (split up) the amount over 30 years with a mortgage rate of 3.5%, resulting in a monthly payment of $1,188. This is also called your Principal and Interest (or P&I) payment since a portion of each loan payment goes toward reducing your loan’s principal balance and towards the interest owed on your loan.
Property Taxes
Property taxes in Texas are generally around 2.5% of the purchase price per year, though prices can vary based on the location, price, and size of the property. For this example, we’ll estimate about $613/month for property taxes.
Insurance
Buyers will also need to have a homeowner’s insurance (aka hazard insurance) policy protecting their home. These costs vary based on additional risk factors (flood and fire zones, especially). For this example, we will estimate about $85/month for homeowner’s insurance. Keep in mind your location can drastically affect your insurance cost in Texas.
Total Monthly Payment
Adding these together gives us the total Principal, Interest, Tax, and Insurance payment (also known as PITI).
P&I (Principal & Interest): $1,188
Taxes: $613
Insurance: $85
Total all-in = $1,886
Other Recurring Housing Costs To Consider
Some properties may also have Homeowner’s Association (HOA) dues for their neighborhood. These are generally found for condominiums or townhomes, but some single-family homes also have HOA dues.
Additionally, clients who put less than 20% down may have private mortgage insurance (PMI) as part of their payment, too.
Frequently Asked Questions
What is the average monthly mortgage payment in Texas?
Based on a median home price of approximately $294,000 in Dallas, a 10% down payment, and a 30-year fixed rate of 3.5%, the estimated principal and interest payment comes to around $1,188 per month. When property taxes and homeowner’s insurance are factored in, the total all-in monthly housing cost rises to approximately $1,886. Keep in mind that actual payments will vary based on the purchase price, down payment, interest rate, and location.
What is included in a total monthly mortgage payment in Texas?
A complete monthly housing payment in Texas typically includes four components, commonly referred to as PITI: principal and interest on the loan, property taxes, and homeowner’s insurance. Property taxes in Texas generally run around 2.5% of the purchase price per year, which can add several hundred dollars to the monthly payment. Homeowner’s insurance costs vary based on location and risk factors such as flood or fire zones.
Are there any additional costs beyond the base mortgage payment in Texas?
Yes. Homeowners in certain communities may also be required to pay Homeowner’s Association (HOA) dues, which are common for condominiums, townhomes, and some single-family home neighborhoods. Buyers who put down less than 20% may also be required to pay private mortgage insurance (PMI) as part of their monthly payment until they reach sufficient equity in the home.
How are property taxes calculated on a Texas mortgage payment?
Property taxes in Texas are generally estimated at around 2.5% of the purchase price per year, though the exact rate varies by location, property size, and assessed value. On a $294,000 home, this works out to approximately $613 per month. Texas property taxes tend to be higher than the national average, which is an important factor to account for when budgeting for a home purchase in the state.
Get Your Customized Mortgage Payment Scenario
We know this example does not match everyone’s scenario and this should only be used as a general guideline for estimating what your housing costs could be in Texas. However, this simple calculation can give homebuyers a general idea of the average monthly mortgage payment in Texas.
To learn more about particular home loans and get more specific scenarios, contact our expert team! Our Client Advisors are available 7 days a week for any questions by phone at (855) 855-4491 or by email at jvmteam@jvmlending.com.
