Welcome to the Texas Mortgage Calculator page by New American Funding, where we provide a powerful tool to navigate the world of mortgages in the Lone Star state. Whether you're a first-time homebuyer or considering refinancing, our Texas Mortgage Calculator is designed to offer valuable assistance tailored specifically to your state.
Using this calculator, you can understand your financial commitments, estimate your monthly mortgage payments, explore different interest rates, and factor in important elements such as property taxes, private mortgage insurance, and closing costs.
This analytical tool empowers you to make informed decisions about your Texas mortgage, ensuring you have the knowledge and confidence to achieve your homeownership goals. Count on New American Funding to guide you on your path to success in the thriving Texas real estate market. If you want to move to Texas, see First-time Homebuyer Guide for Texas. Also, see FHA Loan in Texas for details and requirements for a house in the state.
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According to the Census Bureau, Texas has become one of two U.S. states with a population exceeding 30 million. With a population of 30,029,572 in 2022, Texas ranks second only to California (39,029,342), reflecting its consistent position as one of the fastest-growing and largest-gaining states in recent years. The Texas Triangle, encompassing areas around Houston, San Antonio, Austin, Dallas, and Ft. Worth, has emerged as a focal point for this growth, particularly in suburban regions.
It is important to note that the housing market conditions vary significantly in different locations throughout the state. The largest cities in Texas are Houston, San Antonio, Dallas, Austin, and Forth Worth, with El Paso quickly growing with the biggest population in the far west region. Each part of the state, including its major cities, varies according to its housing market. For instance, the median listed home value in Houston as of May 2023 was $320,661; in El Paso, it’s roughly $226,298.
The median number of days homes stayed on the market, known as DOM (Days on Market) was 45 days as of May 2023. This is above the national average and is longer than this time last year. How long a home stays on the market indicates the competitive level of the housing market. When homes stay on the market longer it gives buyers more time to negotiate for the home they want as well as more control over the process.
Mortgage rates change daily and are affected by numerous factors. These can include the current state of the economy, the geographic location of your property, and changes in government laws and regulations. Keeping track of the current rates in your area can help you make more informed decisions regarding your mortgage journey.
Texas is recognized as one of the states with a relatively high property tax responsibility, with the average effective property tax rate in Texas standing at 1.81%. However, the absence of a state income tax in Texas provides some relief to residents, helping to balance this responsibility with the overall tax structure. Fortunately for Texas homeowners, the state offers various exemptions to property taxes, such as being a veteran, disabled, or over 64 years old.
The average effective property tax rate in Texas represents the percentage of the appraised value of a home that homeowners are required to pay in property taxes. This rate can vary depending on the local tax rates in different areas of the state. Each county in Texas conducts an annual assessment to determine the current market value of properties.
Our Texas mortgage calculator indicates that borrowers who make a down payment of less than 20% on a Conventional loan may be required to obtain private mortgage insurance (PMI). PMI protects the lender in case the borrower defaults on the loan. The cost of PMI premiums can vary significantly, ranging from 0.5% to nearly 6% of the loan principal. This variation depends on factors such as the amount of the down payment, the type of loan, the loan term, and the borrower's credit score.
Borrowers need to consider the potential impact of PMI on their overall mortgage expenses. While PMI can increase monthly payments, it may be canceled under specific conditions, such as reaching a certain loan-to-value ratio or making additional principal payments. To better understand their specific PMI requirements and options, borrowers are encouraged to consult with their loan officer or mortgage professionals. By doing so, they can make informed decisions and develop strategies to manage PMI effectively, ensuring a smooth and successful homeownership journey.
When purchasing a home in Texas, it is essential to consider the specific closing costs associated with the state. Closing costs are extra fees and expenses that are required when purchasing a home. These are in addition to the price of the property itself and usually include things like a property appraisal, lender fees, insurance, and the cost of a credit report.
Texas closing costs average between 2% to 6% of the home’s overall purchase price. Texas also splits the responsibility of closing costs between the buyer and the seller, so be sure to check with your Loan Officer to find out what exact payments will be expected from you. It is important to carefully review and budget these expenses to ensure a smooth and well-prepared home purchase in Texas.
Considering the closing costs and associated fees, you can make informed financial decisions and effectively plan for homeownership in the Lone Star State.
Home insurance rates in Texas are higher than the national average, with an average annual cost of $4,142 compared to the national average of $2,777. This places Texas as the fifth most expensive state for homeowners insurance in the country. However, homeowners can still find affordable options by shopping around and comparing quotes from different insurance providers.
Texas' higher annual insurance costs are influenced by the state's vulnerability to floods and hurricanes. Moreover, the Texas Office of Public Insurance Counsel reports that Texas agent commissions, acquisition costs, advertising, and underwriting are 65% higher than the national average. These additional costs can impact the overall insurance expenses for homeowners in the state. Therefore, prospective homeowners need to factor in these higher costs when budgeting for a mortgage in Texas, ensuring they make well-informed financial decisions and effectively manage their insurance expenses.
Homeowners can expect to pay approximately $350 to $600, depending on the specific services required. Additional fees may apply for termite or mold inspections. Fortunately, the state of Texas regulates the home inspection industry through licensing. This ensures homeowners receive professional and reliable inspection services, giving them peace of mind during home buying. By adhering to licensing regulations, Texas maintains standards of quality and expertise in the home inspection industry, providing homeowners with confidence in the inspection process.
While the cost of a radon test or mitigation system is not typically included in the standard closing costs, it is an important consideration for buyers concerned about radon gas levels in their prospective homes. Buyers in Texas may include radon testing and mitigation as part of their home inspection process, considering the potential costs of these additional services. By addressing radon concerns early on, buyers can make informed decisions and ensure the safety and well-being of their future homes.
Home warranties are service contracts that cover repairs or replacements of major home systems and appliances. While home warranties are not typically included as part of standard closing costs in Texas, they are an option buyers can consider during home buying. The cost of a home warranty can vary depending on factors such as the coverage level and duration.
Including a home warranty in the closing costs would require negotiation and agreement between the buyer and the seller. It's important for buyers in Texas to carefully review the terms and coverage of the home warranty before making a decision, as it can provide financial protection against unexpected repairs or replacements of covered items in the home.
Lender’s title insurance is a common requirement by lenders for homebuyers. Some homebuyers also opt to pay for owner’s title insurance as well, since this will protect them personally against issues arising from title conflicts. Owner’s title insurance protects the homebuyer in case of title issues such as conflicting ownership claims of the property, outstanding lawsuits regarding the property, and fraud.
A lender’s title insurance protects the lender in a similar way. If the seller does not have the legal right to transfer the title to the property, the lender will be protected against potential financial losses. The title insurance premiums for both types will depend on factors like your geographic location and the price of the property itself.
Calculating your mortgage payments may seem complicated at first. There are a lot of factors to consider when you start trying to figure out your mortgage. Each person has their own unique circumstances and financial goals to think about as you plan for your future.
Our mortgage calculator can simplify the process and help you take some of the guesswork out of planning for your dream home. Just input the necessary information into our calculator and you’ll be able to see various options. This information includes the home price, down payment amount, the ZIP code of the property, your credit score, and mortgage rate. There are also advanced options where you can compare various loan types and terms and factor in extra costs like home insurance.
Texas is the 9th largest economy globally, outpacing countries like Australia, Mexico, Spain, and Russia. Its economic prominence is attributed to a robust workforce of over 14 million individuals and a well-developed infrastructure facilitating international access by land, sea, and air. With top rankings in GDP, exports, population growth, and job creation, Texas attracts companies seeking favorable business conditions and opportunities for expansion.
Forbes Magazine acknowledges Texas as the leading state for economic growth due to its positive long-term outlook. The state's investment in workforce education, encompassing numerous trade schools and technical programs, fuels a skilled labor force. Additionally, Texas' business-friendly reputation attracts large and small corporations, with many major companies in the state. Abundant natural resources contribute to Texas' economic vitality, leading to oil production, natural gas, wind energy, and solar power.
Texas' economic success can be attributed to low tax rates and a robust transportation network comprising extensive roadways, rail systems, airports, and seaports. The state's targeted industry clusters, including advanced manufacturing, aerospace, energy, and information technology, ensure a diversified and thriving economy. With a commitment to economic freedom and a conducive business climate, Texas continues to serve as a beacon of opportunity and growth.
