📊 Texas Mortgage Calculator: Can I afford a home?

Relocating to Texas can seem like a financial win due to no state income tax, but hidden property costs can catch you off guard. This calculator helps you see the complete picture of your immediate upfront cash needs and total monthly obligation. Run your numbers to ensure you don't end up house poor.

Never calculate affordability based on principal and interest alone. Because Texas has no state income tax, property taxes are higher to compensate. As Natasha Tessier puts it, property tax can range from low 1.3 (is the lowest most Living In Houston Texas has seen it) up to say 3.3.

You must also include homeowner's insurance and HOA dues. According to Tessier, about $100 a month is the average in the state of Texas, though master-planned communities run much higher.

Many out-of-state buyers don't realize how much cash they need immediately. As Natasha Tessier notes, within 3 days of purchasing that or putting that contract on that house, you're going to owe earnest money, which is 1% of the sale, plus option money, which is usually around $200.

You'll also need to pay for an inspection. On a smaller home, it costs about $300, but can go up to over 1,000 for a luxury home, with 3 to 500 being the norm.

To check if you're overextending yourself, Living In Houston Texas uses the 28/36 rule. As Natasha Tessier explains, you don't want to spend more than 28% of your gross not net but gross income on your house, and then 36% would be on all your debt including your housing.

Enter your gross income and other monthly debt to see if you meet these standard lender requirements.