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The median home price in Texas is $335,000. With a 20% down payment at the state's average 30-year fixed rate of 7.08%, your estimated all-in monthly payment (principal, interest, taxes, and insurance) is approximately $2,419. Texas's property tax rate of 1.6% annually is above the U.S. national average of 1.07%.

A buyer earning Texas's median household income of $70,000 would dedicate roughly 41% of gross monthly income to housing — significantly strained by the standard 28% guideline.

Median Home Price

$335,000

Avg 30-yr Rate

7.08%

Property Tax Rate

1.6%/yr

Est. Monthly PITI

$2,419

Mortgage Calculator

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Total Monthly Payment

$2,419.10

Principal & Interest$1,797.43
Property Tax$446.67
Home Insurance$175.00
Total$2,419.10

Loan Amount

$268,000

Total Paid

$647,076

Total Interest

$379,076

How to Get a Mortgage in Texas

  1. 1 Check your credit score. In Texas, most conventional lenders require 620+; FHA allows 580+ with 3.5% down.
  2. 2 Save for your down payment. On a $335,000 Texas home, 20% down is $67,000 — avoiding PMI and reducing your monthly payment.
  3. 3 Get pre-approved from 2–3 lenders. Rates in Texas average 7.08%, but shopping lenders often saves 0.25–0.5%.
  4. 4 Account for closing costs — typically 2–5% of the loan amount, or $8,040–$13,400 on a median Texas purchase.
  5. 5 Budget for ongoing costs: Texas property taxes average 1.6%/yr ($5,360/yr on the median home), plus homeowner's insurance averaging $2.100/yr.

Monthly Cost Breakdown — Median Texas Home

Principal & Interest (7.08%, 30yr, 20% down) $1,797
Property Tax (1.6%/yr) $447
Homeowner's Insurance $175
Total PITI $2,419

Excludes HOA fees, PMI (not required with 20% down), and utilities.

Texas Mortgage FAQs

What is the average home price in Texas?

The median home price in Texas is $335,000 (2024 estimate). With a typical 20% down payment of $67,000, a buyer would finance $268,000 at a 30-year fixed rate.

What are property taxes like in Texas?

Texas has an average effective property tax rate of 1.6% of assessed home value. On a $335,000 home, that's approximately $5,360 per year ($447/month) — above the national average of 1.07%.

How much income do I need to buy a home in Texas?

To keep housing costs at or below the recommended 28% of gross monthly income on a median-priced Texas home, you'd need to earn roughly $103,676 per year. The state's median household income is $70,000, meaning the typical household allocates about 41% of gross income to housing — significantly strained.

What is the average mortgage rate in Texas?

The average 30-year fixed mortgage rate in Texas is approximately 7.08% (2024 average). Rates vary by lender, credit score, loan-to-value ratio, and loan type. Borrowers with credit scores above 740 typically qualify for the best available rates.

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