Monthly Payment on a $200K Mortgage in Texas
Using Texas's 1.8% property tax rate and $3,800/yr homeowners insurance.
$200K 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% | $1,806 | $1,744 | $1,525 |
| 6.0% | $1,867 | $1,801 | $1,576 |
| 6.5% | $1,928 | $1,859 | $1,628 |
| 7.0% | $1,992 | $1,919 | $1,681 |
| 7.5% | $2,056 | $1,980 | $1,735 |
| 8.0% | $2,122 | $2,042 | $1,791 |
How This Compares to Texas's Median
A $200K home is 35% below Texas's median of $310K. You'll find homes at this price in cities like Abilene, Wichita Falls.
Income Needed for a $200K Home in Texas
To afford this payment of $1,859/mo in Texas, you'd need a household income of approximately $80K/year (28% rule). That's the standard guideline lenders use to determine what you can comfortably spend on housing.
See what a $80K salary can afford →Closing Costs in Texas
Estimated closing costs in Texas: $3K (1.7% of purchase price). Texas has no transfer tax, which helps keep your upfront costs lower.
What to Know About a $200K Mortgage in Texas
Note that Texas's 1.8% property tax rate adds $300/mo to your payment — significantly more than the national average of roughly 1.1%. On a $200K home, that's $3,600/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 ($20,000), your loan of $180,000 at 6.5% over 30 years produces a principal and interest payment of $1,138/mo. Adding Texas's 1.8% property tax ($300/mo) and $3,800/yr insurance ($317/mo) brings your total to $1,859/mo. Because you're putting less than 20% down, PMI adds $105/mo until you reach 20% equity.
Over the full 30-year term, you'll pay approximately $229,580 in total interest. Even a small rate reduction makes a big difference — dropping from 7.0% to 6.5% on this loan saves about $21,536 over the life of the loan.