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House hunting can be stressful, but online tools can simplify the process of setting a house budget and deciding on the terms of a home loan. Our Texas mortgage calculator can provide a quick overview of your potential monthly payments and the total interest you’ll pay over the life of your loan. You simply type in a few key numbers: the home price, down payment amount, loan term, interest rate, and property tax rate. The mortgage calculator allows you to try out different scenarios to find the cost and mortgage terms that best suit your budget. Let’s get started.
Key Points
• A mortgage calculator helps homebuyers understand factors influencing the cost of a mortgage in Texas.
• Choose a loan term that aligns with your financial situation and goals.
• Factor in your income and other debts when considering whether you can afford a monthly payment.
• Explore down payment assistance programs if you are a first-time buyer or haven’t owned a primary residence in the past three years.
Texas Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase price you have agreed to with the home seller, which may differ from the listing price or your initial offer.
• Down payment: The down payment is the amount the homebuyer pays upfront, often expressed as a percentage of the total purchase price. Buyers typically put down between 3% and 20%; payments under 20% usually result in the need for private mortgage insurance (PMI).
• Loan term: The loan term is the time you have to repay the home loan, from 10 to 30 years. A 30-year term offers lower monthly payments but results in more interest paid overall. A shorter term helps you build equity faster and pay less interest, but has higher monthly payments.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Interest rates can vary based on borrower qualifications, market trends, and the type of mortgage loan.
• Annual property tax: Property tax is levied by local governments on both land and buildings. To find a property’s tax rate, search the ZIP code or county name and “effective tax rate” or use the Texas average of 1.36%.
• Monthly payment: The monthly payment is what you would pay toward the principal and interest each month. This Texas mortgage calculator includes property taxes in the monthly payment. Some lenders will also include home insurance and, if applicable, PMI and homeowners association (HOA) dues.
• Total interest paid: The total interest paid represents the total amount of interest you will pay over the life of the loan.
How to Use the Texas Mortgage Calculator
Step 1: Enter Your Home Price
Type in the agreed-upon home price accurately to ensure precise mortgage estimates.
Step 2: Select a Down Payment Amount
Choose the down payment percentage to see how it affects your monthly mortgage payments. If you’re unsure about how much cash you need to get to a certain percentage of the home price, use a down payment calculator.
Step 3: Choose a Loan Term
Select a term of between 10 and 30 years based on your financial goals and budget constraints.
Step 4: Enter an Interest Rate
Input your interest rate to the second or third decimal point for accurate estimates.
Step 5: Add Your Property Tax Rate
Enter the property tax rate as a percentage to estimate your total monthly payment.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator helps you estimate mortgage costs before you start searching for a home, or you can use it to zero in on your desired mortgage rate and terms once you’ve found the home of your dreams. It estimates monthly payments based on loan amount, interest rate, and loan term.
It may be especially helpful to you if you’re buying your first home and haven’t had a mortgage before. You can compare rates and terms to see how they affect payments. A home affordability calculator is another useful tool you can explore. It allows you to work backward from your income, taking your debts into consideration, to arrive at an ideal home budget.
Deciding How Much House You Can Afford
In Texas, the median home sale price in mid-2025 was $347,000. Lenders suggest a mortgage payment should be no more than 28% of gross monthly income. To afford a median-priced home following this guideline, you would need about $85,000 in annual income. This assumes a 20% down payment, a 30-year loan, and a 7.00% interest rate, and takes into account property tax and home insurance. The monthly payment would be $1,847.
If you have other debts, such as a car payment or a hefty credit card balance, you would likely need to earn more. A Texas mortgage calculator can help you understand what your monthly payments would be. You can compare that to your monthly income to see if your payment would be near 28% of your income.
Another way to be reassured that you can afford the payments on a given property and loan is to go through the mortgage preapproval process with a lender. You’ll provide detailed financial information, and the lender will determine whether you qualify for a mortgage and if so, how much you might borrow.
Components of a Mortgage Payment
The main components of a mortgage payment are principal and interest. The principal is the borrowed amount, and the interest is the cost of borrowing. This mortgage calculator also factors in property taxes, which are determined by the local government as a percentage of your home’s value. Your monthly payment may also include private mortgage insurance (PMI) if your down payment is less than 20%. Lenders may also include home insurance and homeowners association (HOA) fees in the monthly bill.
Homes purchased with a loan backed by the Federal Housing Administration (FHA) will have both upfront and annual mortgage insurance premium costs, so if you’re exploring an FHA loan, use an FHA mortgage calculator. And if you are thinking about a U.S. Department of Veterans Affairs (VA) mortgage, there’s a custom VA mortgage calculator for you.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Cost of Living in Texas
The cost of living in Texas varies widely depending on the area, but as a whole, the state is fairly affordable. Its cost of living averages only 92.1% of the cost of living in the U.S. This number reflects costs for utilities, home maintenance, transportation, health care, food and other necessities.
Understanding the cost of living in your specific area can help you make a more realistic assessment of how much house you can afford and plan your budget accordingly. If you’re thinking of moving to Texas, check out Odessa, Amarillo, and Abilene, which are some of the best affordable places in the U.S. Here’s a look at how Texas cities stack up overall, according to data compiled by the Council for Community and Economic Research.
Texas Cities’ Cost-of-Living Stats
Abilene
90.6
Amarillo
83.3
Arlington
95.7
Austin
97.4
Beaumont
91.8
Conroe
90.0
Corpus Christi
89.2
Dallas
101.8
Denton
99.2
El Paso
88.1
Fort Worth
96.1
Harlingen
82.1
Houston
94.2
Longview
93.9
Lubbock
90.4
McAllen
85.1
Midland
96.4
Nacogdoches
89.6
Odessa
93.0
Plano
110.0
San Antonio
91.2
Temple
90.0
Tyler
93.9
Waco
91.7
Texas is one of the more affordable places in the U.S., but some areas may still require a jumbo loan for higher-cost properties.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Tips on Reducing Your Mortgage Payment
Once you own a home, you aren’t always stuck with your monthly payment amount for the duration of your loan. There are ways to reduce your payments. Check out these options:
• Request that your lender drop PMI as soon as you reach 20% equity.
• Recast your mortgage by making a lump-sum payment toward the principal and then asking the lender to recompute your payments.
• Undertake a mortgage refinance if the latest interest rates are noticeably lower than your current one. Make sure you consider closing costs when comparing your current loan with a new one.
• Appeal your property taxes. Use caution if you have made significant home improvements; sometimes asking for a reassessment can trigger higher taxes.
• If you are facing financial hardship, ask your lender for a loan modification.
• Extend your loan term. This will lower monthly payments, but you will pay more interest overall.
• Shop for cheaper homeowners insurance. Consider bundling home and auto policies. If you have put on a new roof or installed a home security system, ask your insurer about a lower rate.
Texas First-Time Homebuyer Assistance Programs
If you’re buying your first home, down payment assistance programs can help you cover the initial costs. To qualify as a first-time homebuyer, you must not have owned a primary residence within the past three years.
Texas down payment assistance programs, many offered by the Texas Department of Housing and Community Affairs, can provide financial aid for the down payment, closing costs, or both, making homeownership more accessible. By exploring these assistance programs, you can reduce the financial burden of purchasing your first home.
When considering a home purchase in Texas, a Texas mortgage calculator is an invaluable tool. The calculator can help you estimate monthly payments and understand the total interest cost of buying a home. Additionally, you can test different numbers in the calculator to see how down payment amount and loan term impact costs. Whether you’re a first-time homebuyer or a seasoned homeowner, understanding the financial aspects of homeownership is a key to long-term financial stability.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
A mortgage payment is typically a monthly payment and includes principal and interest. It often includes a charge for property taxes and homeowners insurance, too. If a borrower is required to have mortgage insurance, that may also be included. The principal reduces the outstanding loan balance, while interest is the cost of borrowing. Including property taxes and insurance in the monthly bill helps ensure that these expenses are covered throughout the loan term (and that the home remains insured).
How does my credit score affect my mortgage loan interest rate?
Your credit score significantly impacts your mortgage interest rate. A higher score can lead a lender to offer its most attractive interest rate, reducing the total cost of your mortgage. A lower score may result in a higher interest rate and stricter lending conditions — if you are approved at all.
Should I choose a 30-year or 15-year mortgage term?
When choosing a mortgage term, consider that a 30-year term offers lower monthly payments but more interest over time, while a 15-year term has higher monthly payments but less interest paid overall. Assess your financial goals and budget when opting for a certain term.
How can I get a lower mortgage interest rate?
To qualify for a low mortgage interest rate, it will help to improve your credit score and to get quotes from a wide range of potential lenders. If you can afford it, consider making a larger down payment.
SoFi Loan Products
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
