Monthly Payment on a $1M Mortgage in Texas
Using Texas's 1.8% property tax rate and $3,800/yr homeowners insurance.
$1M Mortgage in Texas: Rate Comparison
Monthly PITI payment using Texas's 1.8% property tax and $3,800/yr insurance.
| Rate | 5% Down | 10% Down | 20% Down |
|---|---|---|---|
| 5.5% | $7,765 | $7,452 | $6,359 |
| 6.0% | $8,067 | $7,738 | $6,613 |
| 6.5% | $8,375 | $8,030 | $6,873 |
| 7.0% | $8,691 | $8,329 | $7,139 |
| 7.5% | $9,013 | $8,635 | $7,410 |
| 8.0% | $9,342 | $8,946 | $7,687 |
How This Compares to Texas's Median
A $1M home is 223% above Texas's median of $310K. This puts you in the upper range of the Texas market, targeting more desirable neighborhoods or larger properties.
Income Needed for a $1M Home in Texas
To afford this payment of $8,030/mo in Texas, you'd need a household income of approximately $344K/year (28% rule). That's the standard guideline lenders use to determine what you can comfortably spend on housing.
See what a $250K salary can afford →Closing Costs in Texas
Estimated closing costs in Texas: $17K (1.7% of purchase price). Texas has no transfer tax, which helps keep your upfront costs lower.
What to Know About a $1M Mortgage in Texas
Note that Texas's 1.8% property tax rate adds $1,500/mo to your payment — significantly more than the national average of roughly 1.1%. On a $1M home, that's $18,000/year in property taxes alone. This is a major factor in your total payment and something to budget for carefully.
Homeowners insurance in Texas runs $3,800/yr, adding $317/mo to your payment. This is well above the national average due to weather-related risks in the region. Shopping for competitive insurance quotes can help offset this cost.
With 10% down ($100,000), your loan of $900,000 at 6.5% over 30 years produces a principal and interest payment of $5,689/mo. Adding Texas's 1.8% property tax ($1,500/mo) and $3,800/yr insurance ($317/mo) brings your total to $8,030/mo. Because you're putting less than 20% down, PMI adds $525/mo until you reach 20% equity.
Over the full 30-year term, you'll pay approximately $1,147,900 in total interest. Even a small rate reduction makes a big difference — dropping from 7.0% to 6.5% on this loan saves about $107,680 over the life of the loan.