Texas Home Loan Calculator

Buying a home in Texas involves more than estimating the amount you can borrow. Your monthly housing cost can include principal, interest, property taxes, homeowners insurance, mortgage insurance, HOA fees, and other expenses.

This Texas home loan calculator helps you estimate those costs in one place. Enter the home price, down payment, interest rate, and loan term to calculate your principal-and-interest payment. You can then add an estimated Texas property-tax rate, applicable homestead exemptions, insurance, PMI, HOA fees, and extra payments.

The result gives you a clearer picture of what a potential home could cost each month.

How to Use the Calculator

Start by entering the expected purchase price.

Next, enter your down payment. The calculator subtracts this amount from the purchase price to determine the estimated loan amount.

For example:

$400,000 home price − $80,000 down payment = $320,000 loan

Enter the interest rate offered or the rate you want to use for planning purposes. Then select the loan term, such as 15 or 30 years.

You can also enter your estimated property-tax rate and other housing expenses.

What Is Included in a Texas Mortgage Payment?

The principal-and-interest portion is based on the amount borrowed, interest rate, and loan term.

However, the amount a homeowner actually needs to budget each month can be higher.

Other costs may include:

• Property taxes
• Homeowners insurance
• Mortgage insurance
• HOA fees
• Flood insurance
• Other property-related costs

The CFPB recommends considering taxes, insurance, mortgage insurance, and HOA costs when determining whether a home payment fits your budget.

How Is the Monthly Mortgage Payment Calculated?

For a standard fixed-rate amortizing mortgage, the principal-and-interest payment is calculated using the loan amount, monthly interest rate, and number of payments.

The formula is:

M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ−1]

Where:

• M = monthly principal-and-interest payment
• P = loan principal
• r = monthly interest rate
• n = total number of monthly payments

The calculation assumes a standard fixed-rate amortizing loan.

Texas Property Taxes

Property taxes are an especially important part of the home-buying calculation in Texas.

Unlike a simple national mortgage estimate, a Texas calculation needs to account for local property taxes and potentially applicable exemptions.

Property tax amounts can vary depending on the property’s appraised value, taxing units, adopted rates, and exemptions.

The calculator lets you enter your estimated effective property-tax rate rather than assuming that every Texas property has the same rate.

Texas Homestead Exemption

Texas provides a residence homestead exemption for qualifying homeowners.

For school district taxes, the general residence homestead exemption is currently $140,000.

This means an eligible homeowner can generally have $140,000 removed from the value used for school-district taxation.

For example, if an eligible residence homestead has an appraised value of $350,000, a $140,000 school-district exemption would leave $210,000 subject to that school district’s tax calculation before considering other applicable exemptions.

The actual tax bill can still differ because other taxing units may have their own rules and exemptions.

Additional Exemption for Homeowners 65 or Older or Disabled

Texas also provides an additional school-district residence homestead exemption for qualifying homeowners who are 65 or older or disabled.

The additional exemption is currently $60,000.

The calculator includes an optional checkbox for this exemption.

Eligibility requirements apply, so homeowners should confirm their status with the appropriate appraisal district.

Local Homestead Exemptions

Some Texas taxing units can offer additional local residence homestead exemptions.

The Texas Comptroller notes that taxing units may adopt an exemption based on a percentage of a property’s appraised value, subject to statutory limits.

Because local rules vary, the calculator allows you to enter an optional local exemption percentage.

Do not assume that an exemption available in one Texas city or county automatically applies everywhere else.

How Much Should You Put Down?

A larger down payment reduces the amount you need to borrow.

For example:

Home price: $400,000

Down payment: $100,000

Estimated loan: $300,000

A smaller loan can reduce the principal-and-interest payment and may also reduce the amount of interest paid over the life of the mortgage.

The effect of the down payment on mortgage insurance and the interest rate depends on the loan program and lender.

What Is Loan-to-Value Ratio?

Loan-to-value, or LTV, compares the mortgage amount with the property’s value.

The basic formula is:

LTV = Loan amount ÷ Property value × 100

For example:

$300,000 ÷ $400,000 × 100 = 75%

LTV is useful when comparing mortgage scenarios and understanding how much equity you have at the beginning of the loan.

How Much Interest Will You Pay?

The total interest depends primarily on:

• Loan amount
• Interest rate
• Loan term
• Payment schedule

A longer loan term generally produces a lower required monthly principal-and-interest payment but can result in substantially more interest over the full term.

A shorter term generally requires a larger monthly payment but can reduce the total interest paid.

The CFPB’s mortgage examples similarly show how loan term, interest rate, and down payment can materially change the overall borrowing cost.

Can Extra Payments Save Money?

Yes, making additional principal payments can potentially reduce the amount of interest paid and shorten the repayment period.

The calculator includes two options:

• Extra monthly payment
• One-time extra payment

For example, you could compare a normal payment with a scenario where you pay an additional $200 each month.

The calculator then produces a second amortization schedule and estimates the difference in interest and payoff time.

Your lender’s rules determine how additional payments are applied, so verify that extra payments are credited toward principal.

What Is an Amortization Schedule?

An amortization schedule shows how a mortgage changes over time.

Each row contains:

• Payment number
• Payment amount
• Principal
• Interest
• Extra payment
• Remaining balance

Early in a typical amortizing mortgage, a larger portion of the payment goes toward interest. As the balance declines, more of the payment goes toward principal.

The calculator lets visitors inspect the schedule rather than seeing only one monthly-payment number.

What Other Costs Should Texas Homebuyers Consider?

The mortgage itself is only one part of the cost of owning a home.

Depending on the property, buyers may also need to budget for:

• Property taxes
• Homeowners insurance
• Flood insurance
• Mortgage insurance
• HOA fees
• Maintenance
• Repairs
• Utilities
• Closing costs

The CFPB notes that property taxes, homeowners insurance, mortgage insurance, HOA fees and other housing costs can affect the amount a homeowner needs to budget each month.

Texas Home Loan Example

Suppose you are considering a $350,000 home.

You make a $70,000 down payment, leaving a $280,000 mortgage.

If you use a 30-year term and enter a hypothetical 6.5% interest rate, the calculator estimates the principal-and-interest payment.

You can then enter:

• Your estimated Texas property-tax rate
• Homestead exemption status
• Insurance cost
• PMI
• HOA fees

The calculator combines those figures to produce an estimated total monthly housing cost.

This approach gives you a more useful budget estimate than looking at principal and interest alone.

Frequently Asked Questions

What is a good down payment for a Texas home?

There is no single down-payment amount that is best for every buyer. The appropriate amount depends on the loan program, purchase price, finances, cash reserves, and other factors.

How much is the Texas homestead exemption?

For the 2026 tax year, Texas provides a $140,000 general residence homestead exemption for school-district taxation for qualifying homeowners.

Is there an additional Texas homestead exemption for seniors?

Qualifying homeowners who are 65 or older or disabled can receive an additional $60,000 school-district residence homestead exemption.

Does every Texas homeowner get the same property-tax rate?

No. Property taxes depend on local taxing units, property values, tax rates, and applicable exemptions.

Does the calculator include property taxes?

Yes. You can enter an estimated effective rate and applicable exemptions. The result is an estimate rather than an official tax bill.

Does homeowners insurance affect the mortgage interest?

No. Homeowners insurance is a separate housing expense. It can increase the total monthly amount you need to budget but does not change the loan’s interest calculation.

Does PMI apply to every mortgage?

No. Mortgage insurance requirements depend on the loan program, down payment, lender requirements, and other factors.

Can I calculate a 15-year mortgage?

Yes. Select months or years and enter the desired term.

Can I see how much interest I could save with extra payments?

Yes. Enter an additional monthly or one-time payment to compare the standard schedule with an accelerated payoff scenario.

Is this an official Texas property-tax calculator?

No. It is an estimation tool. Official property-tax amounts depend on the applicable appraisal district and taxing units.

Are the calculator results guaranteed?

No. The results are estimates for planning purposes. Your actual lender payment and tax bill can differ.

A realistic Texas home-buying budget should look beyond the advertised mortgage payment. Principal, interest, property taxes, insurance, mortgage insurance and HOA costs can all affect what you actually need to budget each month.

Use the calculator to test different home prices, down payments, interest rates and loan terms. Then compare those estimates with actual Loan Estimates and property-tax information before making a financial decision.