Average Mortgage Payment in Texas (2027)

The average mortgage payment in Texas you'll find quoted online mostly describes other people's loans, taken out when rates sat far below anything a new loan carried in 2026. If you're buying here in 2027, start from the purchase math below instead: the full monthly payment on a median home in seven Texas metros, and what the October 2026 forecasts say about next year. One caution: the rates in it are national survey averages, not a quote, so your own rate and APR will depend on your credit, loan type and points.

Austin, as well as McAllen, sits around $1,500 to $1,600 a month apart on a normally priced home with 9% to 10% down, and every other big metro area lands somewhere in between.

What's behind the table:

• The rate above is assumed at 7.3% per the Freddie Mac 30-year survey for the week of October 22, 2026.
• Property taxes are around 1.5% of the purchase price and this also assumes the buyer applied for a homestead exemption on property taxes.
• Insurance is a 2025 average premium for each metro area, which includes Dallas and Tarrant County and Harris County. The state average is around $3,400.
• PMI is estimated at $50 a month per $100,000 loaned. Freddie Mac's average ranges from $35 to $75 per month. Principal, interest and PMI are shown at 10% down, the rows leave out HOA fees, and totals can be a dollar off from rounding.

Home price does most of the work. Austin's median costs about $950 a month more than San Antonio's, and roughly three quarters of that gap is principal and interest on the bigger loan.

Insurance swings more than most buyers expect. Dallas County's average premium ran more than twice El Paso County's in 2025, about $212 a month apart, and a single statewide guess hides that.

The average monthly mortgage payment in Texas that AI answers and lender blogs quote covers every mortgage still being paid, and most of those were locked when rates were low. FHFA's National Mortgage Database puts it at $2,067 for the second quarter of 2026, counting principal, interest and any escrow.

About 6 in 10 of those Texas loans carry a rate under 5%. Finance the statewide median on the table's terms and you'd pay about $880 a month more than that average borrower.

Texas even runs a little above the national average of $2,044, though the median Texas home sells for about a fifth less than the $417,500 national median the National Association of Realtors reported for September 2026.

Two things push it up. Texas loans carry a slightly higher average rate, 4.6% against 4.4% nationally. And Texas escrow runs heavy, because a state with no state income tax funds its schools largely through property taxes.

Four costs ride in one check. Principal and interest repay the loan. On top of that your lender collects property taxes and homeowners insurance into an escrow account, and if you put down less than 20% there's mortgage insurance too.

National rate pages often show only the first piece. Experian's Texas rates page, in its October 2026 version, quotes $1,724 a month on a $300,000 home with 20% down.

That's principal and interest alone. Texas property taxes and insurance would add about $691 to the same house.

Principal, interest and the amortization schedule

Of the $1,886 in principal and interest on the San Antonio median with 10% down, only about $211 of the first payment goes to the loan principal.

The rest is interest, and above 7% that split shifts slowly. Principal doesn't overtake interest until year 21 of the amortization schedule, and over the full term the interest paid comes to about $404,000, more than the house cost.

Property taxes: why a new buyer pays more than the statewide average

The Tax Foundation's 2026 Texas profile puts the effective property tax rate on owner-occupied Texas homes at 1.40%. That blends in owners whose appraisals have been capped for years and owners over 65 with frozen school taxes, and a new buyer starts with neither.

Our Bexar County property tax breakdown shows the difference. At 2025 rates, a Northside ISD home near San Antonio's median pays about 1.6% of its value in year one with the homestead exemption and about 2.3% without it.

So file the exemption. Form 50-114 goes to your county appraisal district, not the state, and under the Texas Comptroller's exemption rules it takes $140,000 off the home's value for school taxes. When the seller never claimed it, you can pick it up for the rest of that tax year as soon as you qualify. A seller who had it carries the house through December on their exemption, and yours starts the next tax year, with an April 30 deadline and up to two years of grace for a late filing.

The 10% cap on appraisal increases starts the January after your first full year with the exemption, and if the first notice comes in high, you have until May 15, or 30 days after the district mails it, to protest.

Property tax rates also move with the school district and city you land in, and each 0.2 points is worth about $51 a month on the San Antonio median, so run your county's rate before you settle on a budget. The initial tax escrow amount may not match the actual tax bill. Ask your lender how it was calculated (Section G on page 2 of the Closing Disclosure). The annual escrow review will adjust it to the actual amount.

Homeowners insurance by Texas county

The insurance line is where Texas budgets break. The Texas Department of Insurance's preliminary count for 2025 puts the average policy at $3,489, after jumps of close to 18% in each of the two years before and a 6% rise in 2025.

North Texas is hail country and the coast is wind country, and the county averages show both. Dallas County policies averaged $4,363, Harris County $4,144 and Travis County $3,245.

On the coast, one premium can hide two policies. A Nueces County homeowners policy that leaves out wind averaged $1,198 in 2025, and the wind coverage came separately, from the Texas Windstorm Insurance Association (TWIA), at an average of $2,463 on top.

Get quotes during your option period using the actual home and the coverage it needs. Roof age and claim history can push premiums well above the county average.

PMI, and what FHA, VA and USDA loans charge instead

Private mortgage insurance applies to conventional loans with less than 20% down, and on the San Antonio median it adds about $137 a month.

It also ends. Under the Homeowners Protection Act you can ask your servicer in writing to cancel it once the principal balance reaches 80% of the home's original value, if your payments are current, there's no second lien and the value hasn't dropped. It drops off automatically at a scheduled 78%.

An FHA loan's own premium works differently: 1.75% upfront, which can be financed, plus 0.55% a year for most buyers putting 3.5% down.

Put down less than 10% and that annual FHA premium stays for the life of the loan.

VA loans skip monthly mortgage insurance in favor of a one-time funding fee. USDA loans charge 1% upfront plus 0.35% a year for USDA's fiscal 2027.

Down payment

Taxes and insurance add $641 a month in every row, and closing costs come on top of the down payment.

A larger down payment works on two lines at once, the loan amount and the PMI. Going from the smallest down payment to 20% saves about $504 a month, and it takes roughly $52,000 more cash to get there.

Ten thousand dollars covers 3% down on a home up to about $333,000, just under the statewide median.

Three percent is the conventional minimum. The standard 97% loan needs at least one borrower who hasn't owned a home in the past three years. HomeReady or Home Possible drop that rule and cap income at 80% of the area median instead.

Texas down payment assistance can cover part of the down payment and closing costs. The statewide programs come from the Texas Department of Housing and Community Affairs (My First Texas Home) and TSAHC (Home Sweet Texas and Homes for Texas Heroes). San Antonio adds its own Homeownership Incentive Program, and STX can close HIP 80 and HIP 120 along with the TDHCA and TSAHC loans.

Mortgage rates

Interest rates move the payment faster than anything else you can shop for. On the San Antonio loan, each half point is worth about $94 a month, the number to keep in mind when a seller or builder offers a buydown.

A temporary buydown lowers the payment for the first one to three years, while discount points lower it for the life of the loan. Which one wins turns on how long you'll keep the mortgage. You'll find current rates with their APRs on our rates page.

Loan term: 15 versus 30 years

A shorter mortgage term costs more each month and far less overall. Freddie Mac's 15-year average was 6.68% the same October week, and on the San Antonio loan that pushes the payment up about $533 a month.

You will pay about $161,000 in total interest, saving around $243,500 compared to a 30-year loan. But the higher monthly payment means you will need more income to qualify. Our 15 versus 30 calculator lays it out side by side.

If you're waiting for 2027 to bring a cheaper loan, the two forecasts buyers quote most don't support the wait, and the price side is soft without being a bargain.

Run Fannie Mae's 2027 rate through the statewide row and the payment climbs about $37 a month, which barely moves the math. A one percent drop in San Antonio's median home price saves only about $24 a month. In this market, your interest rate has a bigger impact on your payment than a small price change.

The free Texas mortgage calculator on our site runs the same math as the metro table with your numbers in it. Give it the price, your down payment, the county's property tax rate, an insurance quote, PMI if you're under 20% down and monthly HOA fees, and it builds the payment, with the amortization schedule on its own tab.

The number to budget from, though, is the Loan Estimate on a specific address, taxes and insurance included, and that comes after a pre-approval. If this is your first purchase, our page on first-time home buyer programs covers the 3% options and the assistance that pairs with them.