Texas Mortgage Calculator
What You Should Know
- This Texas Mortgage Calculator enables you to estimate your mortgage payments and other expenses related to homeownership in Texas.
- The Mortgage Calculator for Texas provides detailed results with detailed expenses and a downloadable mortgage payment schedule.
- Texas has four main loan types available that may help some people find a low-cost financing option for their property.
About Mortgage Calculator for Texas
The Mortgage Payment Calculator for Texas enables you to determine your monthly mortgage payments based on your financial situation and the house you are looking to buy. The calculator includes estimates of your principal, interest, property taxes, homeowner’s insurance, and private mortgage insurance. In addition, you will also find information about the transfer tax in Texas and current mortgage rates in Texas.
To use this calculator, you need to input certain information that is related to the mortgage calculations. The following inputs are required for estimating your mortgage in Texas:
- Home Price: The price of the property you are planning to purchase. This input should not include closing costs.
- Down Payment: The amount you are planning to contribute as a down payment on the property. The required down payment on a property may range depending on different loan types. Generally, the lowest down payment allowed is 3%, but the most popular down payment is usually 20%.
- Interest Rate: The interest rate you expect to pay on your mortgage loan. Usually, mortgage lenders provide you with an interest rate at the time of loan origination or mortgage pre-approval.
- Property Assessed Value: The value of the property according to the property assessment. If you do not know the property assessed value, you can input the home price value.
- Length of Loan: The number of years you are planning to pay off your mortgage loan. The most common loan lengths are 15 and 30 years. The larger the length of the loan, the more interest paid over the loan lifetime.
The Texas Mortgage Calculator provides detailed information about the mortgage in the results section. This section contains the monthly payment breakdown, which includes Monthly Mortgage Payments, Property Tax, Homeowners Insurance, and HOA Fees. All these expenditures are customizable, so you can adjust the results based on your specific case.
The results section also has interactive charts that may help you understand the loan structure better. It has a pie chart that provides a visualization of the expenses related to the mortgage. It also has an amortization chart that visualizes how much principal and interest are being paid every year. Lastly, the calculator generates an amortization schedule that provides a clear monthly payment schedule that can also be downloaded.
Texas Mortgage Rates
One of the most important variables that affect how expensive the mortgage will be is the interest rate. When a person is buying a home in Texas, they should try to find the lowest interest rate possible to avoid paying extra interest. The following table provides the best current Texas mortgage rates.
|10-Year Fixed Rate||5.375%||5.743%|
|15-Year Fixed Rate||5.250%||5.560%|
|20-Year Fixed Rate||5.750%||5.972%|
|30-Year Fixed Rate||6.125%||6.267%|
Last updated March 27, 2023. Rates are for informational purposes only.
† While we try our best to get your the best rates, we cannot guarantee that they are always accurate. Casaplorer assumes no liability and provides no warranty for the accuracy of the information presented, and will not be held responsible for any damages resulting from its use. Rates shown are for informational purposes only and may differ by zipcode, county, and state. Estimated payments do not include taxes and insurance. Some state and county maximum loan amount restrictions may apply. Casaplorer is not endorsed or sponsored by any mortgage lender or government agency. For information regarding any of these rates, please contact the relevant mortgage lender. View our entire selection of rates at our main mortgage page.
Mortgage Types in Texas
There are generally four mortgage loan types available in Texas. They include conventional loans, FHA loans, USDA loans, and VA loans. Every mentioned loan has its requirements and perks that may be useful for some people. This section explains what each loan offers and who can get it.
These loans are standardized loans that conform to the loan requirements set by the Federal Housing Finance Agency (FHFA). A conventional loan is the most popular loan type because it is not restricted to a certain demographic. Even though it is the most available loan, there are still some financial requirements a borrower must meet before they can be eligible for a conventional loan.
Conventional Loan Requirements Chart
|Minimum Down Payment||≥ 3%|
|Minimum Credit Score||≥ 620|
|Maximum Debt-to-Income Ratio||< 50%|
It is important to note that there are also loan limits that a conventional loan must meet. If the conventional loan has a balance larger than the loan limit, then it is not considered conforming, and it may require additional restrictions or insurance premiums.
Conventional Loan Limits in Texas Chart
|Property Type||Limit Amount|
In addition to that, conventional loans require private mortgage insurance (PMI) for all loans that have a loan-to-value ratio of more than 80%. This is equivalent to having a down payment of less than 20%. This means that a borrower has to pay private mortgage insurance if their down payment is below 20% of the house price. It is possible to remove PMI once the LTV on the mortgage lowers below 80%.
These loans are backed by the Federal Housing Administration, and they are available to a large number of people in the US. The main advantage of an FHA loan over a conventional loan is that FHA loans can be used by people with bad credit history. FHA loans also usually have a lower interest rate than conventional loans because these loans are insured by the FHA.
FHA Loan Requirements Chart
|Credit Score||≥ 500|
|Debt-to-Income Ratio||< 43%|
|Type of Residence||Purchased House Must Be Primary Residence.|
|Income & Employment||Borrower Must Have Steady Employment.|
All FHA loans require an FHA mortgage insurance premium (MIP) to be paid at the time of loan origination and periodically after. There is an upfront fee (UFMIP) that must be paid for all FHA loans at the time of origination. There is also an annual fee (MIP) that is charged annually and paid in monthly installments.
- Upfront Fee (UFMIP): 1.75% of the original mortgage principal.
- Annual Fee (MIP): 0.45% to 1.05% of the outstanding mortgage principal. The exact rate depends on the term of the loan, loan amount, and loan-to-value (LTV) ratio.
These loans are backed by the US Department of Agriculture, and they are offered to people looking to buy a house in a rural area of the United States. An important distinction of a USDA loan is that a borrower can get it with a down payment as low as 0% with no restriction on credit score. A borrower must still meet all other requirements to qualify for this loan.
USDA Loan Requirements Chart
|Status||US Citizen or Lawful Permanent Resident|
|Location||Population < 20,000|
|Type of Residence||Primary Residence|
|Household Income||< 115% Area Median Income|
|Debt-to-Income Ratio||< 41%|
Some USDA loans may not require mortgage insurance, but the most common USDA loan has specific mortgage insurance. USDA Guarantee Loans have upfront and periodic fees that must be paid by all borrowers getting this loan. Similar to FHA mortgage insurance, USDA mortgage insurance is comprised of two fees:
- Upfront Guarantee Fee: 1% of the Original Loan Principal.
- Annual Guarantee Fee: 0.35% of the Outstanding Loan Principal.
This loan type is backed by the Department of Veteran Affairs, and it is offered only to qualifying veterans, servicemen or their spouses. VA loans allow borrowers to put a down payment as low as 0%, and they are generally cheaper than the other loan types mentioned above. Even though it is one of the best loans, it has strict eligibility requirements that borrowers must meet. Anyone who meets at least one of the following criteria may qualify for a VA loan:
Branch of Service - Army, Marines, Navy, and Airforce
- At least 90 days of active wartime service, OR
- At least 180 days of active service during peacetime, OR
- If you are the spouse of a service member that passed away during their service,
Branch of Service – National Guard or Reserves
- If you were part of the National Guard or Reserves, then at least 6 years of service, OR
- If you are the spouse of a service member that passed away during their service.
VA mortgage insurance does not require any annual payments. On the other hand, it has a hefty upfront payment that ranges from 0.50% to 3.60%. This fee can be rolled into the loan principal as a no-closing cost mortgage.