What’s the average mortgage payment in Texas?

While the cost of living in Texas is cheaper than in other large states like California and New York, housing costs in the Lone Star State have increased significantly in recent years.

In Texas, the average monthly mortgage payment is $2,174, which is slightly below the national average of $2,329. This is based on the average home purchase price for a fixed 30-year loan at an interest rate of 6.68%. That’s up from $1,859 in 2024 and $1,793 in 2023, for an increase of 21.2% from 2023 to 2025.

Even though Texas has some well-known advantages for homeowners, such as no state income tax, it also has some drawbacks, including some of the highest property taxes and homeowners insurance costs in the country. With home prices and mortgage rates increasing across the board, it's more important than ever to understand what goes into your monthly payment.

Overview of the Texas housing market

Texas continues to attract new residents, with the population growing about 7% from 2020 to 2024. Affordable living and a strong economy are helping cities like Austin, Houston, and Dallas stand out.

Although home prices have gone up in recent years, buying a home in Texas is still considered more affordable than in many other markets. The median listing price in Texas as of July 2025 was $375,000, compared with $750,000 in California and $671,000 in New York.

Despite a strong economy and steady population growth, some investors expect home prices in Texas to decline throughout 2025. This could make housing more accessible to first-time buyers or anyone considering a move to Texas.

Regional differences in mortgage payments: How does Texas compare?

The average monthly mortgage payment in Texas is about $2,174, making it more affordable than California, where the average is $3,672, and Massachusetts, with $3,241.

However, where you live in Texas matters. For example, in and around Austin, costs are on the higher side. In Hays County, the average mortgage payment is about $1,945, and in Williamson County, it’s $3,024. Both are close to the city and reflect the higher home prices and property taxes found in fast-growing urban areas.

In rural parts of the state, such as Haskell County, the average monthly mortgage payment is $1,248.

It’s also worth noting that Texas has no personal state income tax. While this doesn’t directly affect your mortgage payment, it can free up more room in your monthly budget.

Monthly mortgage payments by county

This is the average mortgage payment for the top ten most populous counties in Texas in 2025.

These averages illustrate just how much location can impact your mortgage costs. Many of the most expensive counties are located near major metropolitan areas, such as Dallas, Austin, and Houston. However, if you're open to a slower pace of life in a more rural setting, places like Atascosa County may offer a more affordable place to live. The average monthly mortgage payment in Atascosa County is about $1,545, which is below the Texas state average of $2,174.

Key factors influencing mortgage payments in Texas

When it comes to buying a home, it’s important to understand the key factors that determine how much you’ll pay each month on your mortgage. Interest rates, loan type, and your down payment all play a significant role in your monthly cost.

But in Texas, there are some unique things to keep in mind, especially when it comes to taxes, insurance, and the local housing market.

Here are a few things to consider:

• Home prices in Texas: The average price for a home in Texas is $301,996, according to Rocket® data from July 2024 to July 2025. While home prices have increased over time, Texas remains more affordable than many other states. In fact, some cities are beginning to see prices come down.
• Property taxes: Texas has some of the highest property taxes in the country. As of 2023, the average effective property tax rate was 1.47%, making it one of the highest in the U.S. High property taxes can increase your borrowing costs.
• Home insurance: Home insurance in Texas is also among the highest in the country, which may be due to the severe storms the state has faced in recent years. The average annual premium rose is $4,140, among the top five in the nation.
• Interest rates: Interest rates have a big impact on what you’ll pay each month for your mortgage. Even a small increase can make a noticeable difference in your payment. As of Aug. 26, Rocket Mortgage® offers an interest rate on a 30-year fixed-rate conventional loan in Texas of 6.75% with an APR of 7.021%.
• Loan terms: The length of your repayment schedule affects both your monthly payment and the rate you qualify for. For example, as of Aug. 26, a 15-year fixed-rate conventional loan from Rocket Mortgage has an interest rate of 5.875% and an APR of 6.320%, both of which are lower rates than the same loan with a 30-year term.
• Down payment: The more money you put toward buying a home, the less you need to borrow. A down payment of at least 20% can also help you qualify for a lower interest rate and avoid private mortgage insurance (PMI) on conventional loans.

Texas-specific mortgage resources

From tax credits to down payment assistance programs, here are a few resources worth exploring if you're looking for a home in Texas.

• My First Texas Home Program: This program helps eligible borrowers get up to 5% of their mortgage to use for a down payment and closing costs. Run by the Texas Department of Housing and Community Affairs, this program is designed for buyers who are struggling to save enough up front to close on a home. Also, you may qualify for competitive interest rates as an eligible first-time homebuyer.
• Texas Mortgage Credit Certificate Program: The MCC allows qualified first-time buyers to claim a federal income tax credit. Eligible homeowners can receive up to $2,000 per year based on the mortgage interest they pay. This credit can help you reduce your tax bill and create some extra room in your annual budget for housing costs.
• Local and regional assistance programs: In Texas, both state and local programs offer support to help make buying a home more realistic. Depending on where you live, or where you’re planning to move, you may qualify for financial assistance like grants, forgivable loans, or low-interest mortgages. Since every program varies by city and county, it’s a good idea to contact your local housing authority or municipal government to explore what assistance programs are available in your neck of the woods.

In addition to Texas-specific assistance programs, there are other ways to lower your monthly mortgage payment, such as refinancing, removing private mortgage insurance, or changing your loan term.

The bottom line: What you’ll pay each month as a Texas homeowner

If you're in the market for a new home in Texas, reviewing mortgage payment averages and understanding the factors that contribute to them can help you narrow down your options. But remember, those numbers are just a baseline. The amount you’ll pay depends on your financial situation, the current housing market, and your lender. Taking time to compare your loan options can go a long way in helping you find a home that fits both your lifestyle and your budget.

If you’re ready to explore your borrowing options for buying a home in Texas, start your application online with Rocket Mortgage today.