Mortgage Calculator Houston Texas

Reviewed by: David Chen, CFA | Texas Real Estate Specialist
Last Updated: October 2025

Buying in Harris County or the surrounding areas? Use our local mortgage calculator houston texas to accurately budget your monthly PITI. This tool accounts for Houston’s unique property tax rates (including MUD taxes) and high insurance costs due to Gulf Coast weather.

Houston Mortgage Calculator

Home Price ($)

Median home price in Houston is ~$340k.

Down Payment ($)

20% is standard to avoid PMI.

Interest Rate (%)

Annual fixed interest rate.

Loan Term (Years)

Property Tax Rate (%)

Houston area avg is 2.2% – 2.8% (inc. MUDs).

Annual Home Insurance ($)

Rates are high in TX due to weather risks.

Monthly HOA Fees ($)

Common in newer subdivisions.

Target Monthly Payment ($)

Leave blank to calculate payment.

Estimated Monthly Payment

$0.00

P&I, Taxes, Ins & HOA

mortgage calculator houston texas Formula

This calculator uses the standard mortgage P&I formula but critically adjusts the total for Houston’s high property taxes (often including MUD taxes) and insurance costs.

P&I = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Total = P&I + (Tax/12) + (Ins/12) + HOA

Source: Harris Central Appraisal District (HCAD)

Variables

P&I: Principal and Interest payment.
Tax: Combined rate (School, County, City, MUD).
Insurance: Hazard/Windstorm insurance.
MUD: Municipal Utility District tax (often part of the total tax rate).

Related Calculators

What is a Houston Mortgage Calculator?

A mortgage calculator houston texas is essential because Texas has some of the highest property taxes in the US to offset the lack of state income tax. In the Houston metro area, many homes are also in **Municipal Utility Districts (MUDs)**, which can add an extra 0.5% to 1.0% to your tax bill.

Standard calculators often default to 1.0% or 1.2% tax rates, which drastically underestimates the monthly cost of owning a home in Harris, Fort Bend, or Montgomery counties.

How to Calculate Houston Mortgage Payments (Example)

Home Price: $350,000 (Starter home in Katy/Cypress).
Down Payment: 3.5% (FHA) = $12,250. Loan: $337,750.
Rate: 6.5%. P&I = ~$2,135.
Tax: 2.5% (inc. MUD) = $8,750/yr -> $729/mo.
Insurance: ~$200/mo (Higher due to storms).
Total: $2,135 + $729 + $200 + MIP/PMI = ~$3,200+/mo.

Frequently Asked Questions (FAQ)

What is the Homestead Exemption?

In Texas, filing a Homestead Exemption on your primary residence significantly reduces your taxable property value for school district taxes, lowering your monthly bill.

What is a MUD Tax?

A Municipal Utility District (MUD) tax helps fund water and sewage infrastructure in newer developments outside city limits. It is paid on top of standard county taxes.

Are insurance rates higher in Houston?

Yes. Due to the risk of hurricanes, flooding, and hail, homeowners insurance in the Houston area is generally higher than the national average.

Do I need flood insurance?

In Houston, yes. Even if you are not in a high-risk zone (Zone AE), heavy rains can cause street flooding. Most lenders require it in specific zones, but it is highly recommended everywhere in the region.