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A realistic monthly payment includes more than principal and interest. Texas property taxes and insurance move the number significantly, so factor them in before you set a budget.
Estimates only. Actual rates, taxes, insurance and HOA dues vary. Calculator provided by mortgagecalculator.org. For an accurate pre-approval, I'm happy to connect you with a lender who knows the Katy and Fort Bend market.
Why Texas payments surprise out-of-state buyers
Texas has no state income tax, and it funds local government substantially through property tax instead. Effective property tax rates here are among the higher ones in the country, which means the tax portion of a monthly payment is a much larger share than buyers relocating from lower-tax states expect.
The practical effect: two homes at the same price, one in Texas and one in a low-property-tax state, can carry materially different monthly costs at the same interest rate. Run the full payment, not just principal and interest, before you set a budget.
Homeowners insurance is the second surprise. Wind, hail and flood exposure across the Gulf Coast region put premiums above the national average, and flood insurance — if the property needs or warrants it — is a separate policy from a standard homeowners policy.
What actually goes into the monthly number
Principal and interest is the loan payment itself. Property taxes and homeowners insurance are usually collected monthly into an escrow account and paid out by the servicer when they come due. Mortgage insurance applies on many loans with less than 20% down. HOA dues are billed separately by the association and are not part of the mortgage payment at all, though they're very much part of your monthly cost.
In much of Katy, Fulshear and Fort Bend County there's one more component folded into the tax line: a Municipal Utility District levy. MUD taxes fund water, sewer and drainage infrastructure, vary by district, and generally decline as the district's bonds are repaid. Two homes at the same price in neighbouring subdivisions can carry noticeably different total tax rates because of it.
So check the total tax rate for the specific property, not a county average. It's the single input most likely to make a calculator estimate wrong.
One adjustment worth knowing about
If the home will be your principal residence, a Texas homestead exemption reduces the taxable value and caps annual increases in that taxable value at 10%. It's filed with the county appraisal district where the property sits, there's no fee, and it lowers the tax portion of your payment going forward.
It also means the tax figure shown on a listing may reflect the previous owner's exemption status rather than what you'll pay — in either direction. Ask before you assume the listed figure is yours.
Run the Numbers
Questions about Texas monthly payments
Why are property taxes so high in Texas?
Texas has no state income tax and funds schools, counties and municipalities largely through property tax instead. The result is an effective property tax rate among the higher ones nationally. For a monthly payment calculation it means the tax component is a much larger share than buyers from income-tax states are used to.
What's included in a monthly mortgage payment in Texas?
Principal and interest, plus property taxes and homeowners insurance collected into escrow, plus mortgage insurance on many loans under 20% down. In many Katy and Fort Bend County subdivisions the tax portion also includes a Municipal Utility District levy. HOA dues are billed separately by the association and aren't part of the mortgage payment.
How do I find the actual tax rate for a specific home?
Look it up by address with the county appraisal district, which lists every taxing jurisdiction that applies — county, school district, city if applicable, and any MUD or emergency services district. A county average will mislead you, because MUD rates vary substantially between subdivisions that sit side by side.
Will a homestead exemption lower my monthly payment?
Yes, going forward. A homestead exemption on your principal residence reduces the taxable value and caps annual increases in taxable value at 10%, which lowers the tax portion of your escrow. File it with the county appraisal district after closing — there's no fee to do so.