Buying a Home in Texas: What You Need to Know
If you're considering buying a home in Texas, understanding the true cost of homeownership is essential. Beyond your mortgage payment, Texas homeowners face property taxes, insurance costs, and closing fees that vary significantly from the national average. This calculator uses Texas-specific data to give you accurate monthly payment estimates.
Texas Property Taxes
Texas has an effective property tax rate of 1.36%, ranking #7 out of 50 states (where #1 is the highest). On a median-priced home of $338,000, you'd pay approximately $4,597 per year in property taxes, or about $383/month.
Texas is among the states with the highest property taxes in the nation. This is often because property taxes fund local schools and services. Be sure to factor this into your budget when determining how much home you can afford.
Texas Homeowners Insurance
The average annual homeowners insurance premium in Texas is $3,899 for $300,000 in dwelling coverage, or about $325/month.
Texas's insurance costs are moderate compared to national averages. You may be able to lower your premium by increasing your deductible, bundling with auto insurance, or installing security systems.
Texas Closing Costs
Closing costs in Texas average 0.93% of the home's purchase price. On a $338,000 home, that's approximately $3,143. Closing costs typically include:
- Loan origination fees
- Appraisal and inspection fees
- Title insurance and search
- Recording fees
- Prepaid property taxes and insurance
Texas Housing Market
The median home price in Texas is $338,000. This is close to the national median of approximately $410,000, offering a balanced housing market with options for various budgets.
More Texas Mortgage Tools
Use these additional calculators to plan your Texas home purchase: