Mortgage Calculator for Texas

Texas Housing Market Overview

Texas stands out for its robust and dynamic housing market, characterized by significant regional variation and consistent population growth. As of 2026, the median home price across Texas is approximately $350,000, though this figure can fluctuate substantially between major cities and rural areas. Markets such as Austin and Dallas-Fort Worth have seen above-average appreciation, while cities like Houston and San Antonio offer more moderate pricing. Recent trends show high demand fueled by job growth, in-migration, and a relatively affordable cost of living compared to coastal states.

Property Taxes in Texas

Texas has one of the highest effective property tax rates in the country, typically averaging between 1.6% and 2.1% of assessed value, depending on the county. Unlike many states, Texas relies heavily on property taxes to fund local schools and services, as there is no state income tax. The following table highlights estimated 2026 property tax rates and median annual bills for the largest Texas counties:

County	Approx. Effective Rate	Median Annual Bill
Harris (Houston)	2.13%	$6,500
Dallas	2.07%	$5,600
Tarrant (Fort Worth)	2.24%	$5,800
Bexar (San Antonio)	2.05%	$4,800
Travis (Austin)	1.88%	$7,000
Collin	2.12%	$7,800
Denton	2.14%	$6,900
El Paso	2.22%	$3,300

Texas offers significant property tax exemptions, most notably the homestead exemption, which reduces the taxable value of a primary residence by at least $40,000 (as of 2026), and additional exemptions for seniors, disabled homeowners, and veterans.

Homeowners Insurance in Texas

Homeowners insurance premiums in Texas are among the highest in the nation, averaging approximately $2,700 annually as of 2026. This is driven by exposure to hurricanes along the Gulf Coast, severe hail and windstorms in North Texas, and occasional tornadoes. Flooding is also a significant risk, but standard homeowner policies do not cover flood damage, requiring separate coverage through the National Flood Insurance Program or private insurers. Texas operates the Texas FAIR Plan Association, a state-backed insurer of last resort for homeowners unable to obtain coverage in the private market.

Buying Costs and Fees in Texas

Closing costs in Texas typically range from 2% to 4% of the purchase price, so on a $350,000 home, buyers can expect to pay approximately $7,000 to $14,000 in closing fees. Texas does not levy a state mortgage tax or real estate transfer tax, making it more affordable compared to many states. Buyers are generally responsible for lender fees, title insurance, and escrow costs, while sellers usually pay the real estate agent commissions (often around 6% of the sale price) and some title-related expenses.

Texas Housing Market Details

Texas is home to approximately 31 million residents as of 2026, with continued population growth driven by job creation, business relocations, and a favorable climate for both individuals and companies. The state’s largest cities show substantial differences in housing prices and market dynamics, with urban areas experiencing higher demand and faster appreciation than rural regions. The following table outlines the largest cities in Texas by population and median home value:

City	Approx. Population	Median Home Value
Houston	2,400,000	$335,000
San Antonio	1,600,000	$310,000
Dallas	1,350,000	$400,000
Austin	1,100,000	$530,000
Fort Worth	1,000,000	$340,000
El Paso	700,000	$215,000
Arlington	400,000	$320,000
Corpus Christi	320,000	$265,000
Plano	290,000	$520,000
Laredo	270,000	$210,000

Urban counties generally offer higher home values and increased access to amenities, while rural counties remain more affordable but may have slower appreciation rates and fewer housing options.

Economic Factors in Texas

Texas does not impose a state income tax, which contributes to its reputation as a tax-friendly destination. The state sales tax rate is 6.25%, with local jurisdictions able to add up to 2% more. The Texas economy is anchored by energy, technology, healthcare, and manufacturing, with major employers like ExxonMobil, Dell, and Texas Instruments. As of 2026, the statewide unemployment rate is approximately 4.1%. Overall, the cost of living tends to be lower than the national average, though this can vary between urban and rural areas.

Mortgage and Foreclosure Laws in Texas

Texas primarily uses a non-judicial foreclosure process, meaning lenders can foreclose without court involvement if the deed of trust includes a power-of-sale clause. This typically results in a faster timeline for foreclosure compared to judicial states. Sellers in Texas are required to provide property condition disclosures, including information on known defects, previous flooding, and foundation issues. Unique legal considerations include restrictions on home equity lending and specific requirements for notice of foreclosure sales.

First-Time Homebuyer Programs in Texas

The Texas Department of Housing and Community Affairs (TDHCA) offers a variety of programs to support first-time homebuyers. Notable options include My First Texas Home (providing down payment and closing cost assistance), My Choice Texas Home (open to repeat buyers), and the Texas Mortgage Credit Certificate (MCC), which offers a federal tax credit for a portion of mortgage interest paid. Additional programs such as the Homes for Texas Heroes target teachers, police, and veterans. Many rural buyers may qualify for USDA loans, which offer zero down payment options in eligible areas, and some local governments offer grants or forgivable loans to support low- and moderate-income buyers.

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