Mortgage Calculator Houston, TX (2026)
Estimate your monthly mortgage payments in Houston using local property tax rates and current Texas real estate data.
Monthly Payment Estimate for Houston
Estimated Monthly Payment
Houston Real Estate Market Overview
Buying a home in Houston, Texas requires careful financial planning. With a median home price of $304,622 — lower than the national median of $412,000 — and an average 30-year mortgage rate of 7.15%, most buyers in Houston can expect a monthly payment of approximately $2,057 on a 20% down payment.
Houston's property tax rate of 1.6% adds approximately $406/month to your housing costs. Combined with homeowner's insurance, the total monthly housing expense for the median home in Houston is approximately $2,591/month.
The real estate landscape in and specifically within Houston limits has shown resilient trends. Local economic factors in Texas continue to drive demand, while inventory levels dictate the buyer market conditions residents are currently experiencing. Potential homeowners should also account for local Houston utility costs and potential HOA fees which can vary significantly by neighborhood.
Affordability Analysis
Can you afford the typical home in Houston based on the median income?
In Houston, the median household income is $77,346. Based on your calculated monthly payment of , this represents of the median local income.
How Much House Can You Afford in Houston?
Determining your budget in Houston depends on several factors beyond just the purchase price. Lenders typically look at your Debt-to-Income (DTI) ratio. In Houston, with a median household income of $77,346, local banks generally prefer a total housing payment that stays below $1,805 per month.
If you are earning the median income for Houston, you might find that homes priced between $232,039 and $348,058 are within your "comfortable" to "stretch" range. However, with the current Houston median home value at $304,622, many first-time buyers are looking at creative financing options or larger down payments to keep monthly costs manageable.
Mortgage Rate Comparison: Houston vs National Average
| Term | Houston Average | National Average | Difference |
|---|---|---|---|
| 30-Year Fixed | 7.15% | 7.15% | 0.00% |
| 15-Year Fixed | 6.45% | 6.45% | 0.00% |
Mortgage rates in Houston are currently 0 percentage points below the national average for a standard 30-year fixed-rate mortgage. Local rates are influenced by the state's economic conditions and lender competition within the Texas market.
Understanding Your Mortgage in Houston, Texas
The local real estate market in Houston is currently a buyer market, with homes selling in an average of 58 days. Home values have increased 3.7% over the past 12 months.
When calculating your affordability in Houston, consider more than just the mortgage principal and interest. Your total monthly "PITI" (Principal, Interest, Taxes, and Insurance) should ideally not exceed 28% of your gross monthly income. In Houston, where the median household income is $77,346, a recommended maximum monthly payment would be around $1,805.
Closing costs in Texas are another critical factor. Usually ranging from 2% to 5% of the loan amount, buyers in Houston should expect to pay between $6,092 and $15,231 upfront. These costs cover title insurance, appraisal fees, and local Houston government recording fees.
Choosing between a 15-year and 30-year mortgage in Houston depends on your monthly cash flow. While a 15-year mortgage offers lower interest rates (currently around 6.45% locally), the monthly payments are significantly higher than the 30-year option at 7.15%.
Amortization Schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
* Schedule shows yearly totals. Total of 360 payments for 30-year term.
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Frequently Asked Questions — Mortgages in Houston
What is the average mortgage payment in Houston, TX?
Based on the median home price of $304,622 in Houston with a 20% down payment and the current average rate of 7.15%, the estimated monthly mortgage payment is $1,646. This includes principal and interest only — adding property taxes (1.6%) and insurance brings the total to approximately $2,179/month.
What is the property tax rate in Houston, TX?
The effective property tax rate in Houston is 1.6%, which is higher than the national average of 1.07%. On a $304,622 home, you would pay approximately $4,874/year ($406/month) in property taxes.
Is Houston a buyer's or seller's market?
Houston is currently a buyer market. Homes are selling in an average of 58 days, and home prices have increased 3.7% over the past year.
What credit score do I need for a mortgage in Houston?
Generally, you'll need a credit score of at least 620 for a conventional mortgage in Houston. However, FHA loans may be available with scores as low as 580. A higher score typically results in a lower interest rate, which can significantly reduce your monthly payment on a $304,622 home.
How much do I need for a down payment in Houston?
For the median home price of $304,622 in Houston, a 20% down payment would be $60,924. However, many programs allow for lower down payments, such as 3.5% for FHA ($10,662) or 3% for some conventional loans ($9,139).
What are closing costs in Houston, TX?
Closing costs in Houston typically range from 2% to 5% of the home's purchase price. For a $304,622 home, you should budget between $6,092 and $15,231 to cover origination fees, title insurance, and other administrative costs.