The average mortgage payment in Houston is approximately $2,150 per month, based on current home prices, interest rates, and property tax rates. This total reflects principal, Interest, taxes, and insurance (PITI) for a typical 30-year fixed mortgage. While that number can shift depending on the loan type and neighborhood, it gives a solid benchmark for what most buyers can expect in Houston's current market.
At Flagstone Mortgage, we help Houston-area borrowers understand and plan for every part of their mortgage—because monthly payments should feel clear, not complicated.
What Makes Up the Average Mortgage Payment in Houston?
Houston's housing affordability is a key draw, but your monthly payment is shaped by more than just your home's price. As of mid-2025, the average home value in Houston sits near $350,000. With a 20% down payment and a 7% interest rate, the estimated monthly mortgage payment breaks down like this:
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Principal & Interest: $1,860
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Property Taxes (approx. 2.2%): $640/month
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Homeowners Insurance: $100/month
These numbers can shift depending on the property's location. Homes in The Heights or West University often come with higher tax bills and insurance premiums, while areas like Cypress or Pearland may offer more moderate monthly costs.
At Flagstone Mortgage, we provide tailored breakdowns so you understand what applies to your property, not just averages.
How the Average Mortgage Payment in Texas Compares Statewide
The average monthly mortgage payment in Texas is estimated at $2,050, which is slightly below Houston's average. That variation is mainly due to local home prices and property tax differences across regions.
Cities like Austin and Dallas often push beyond $2,500 per month, driven by higher median home values. In contrast, cities like Waco and Lubbock see averages closer to $1,600-$1,700, with lower home values and slower market appreciation.
Flagstone Mortgage has experience across Texas markets, and our team can help compare payment expectations for any region you're considering.
What Impacts Your Monthly Mortgage Payment in Texas?
Loan Amount & Property Value
The bigger the loan, the larger the payment. A $350,000 home with a 20% down payment results in a $ 70,000 loan. But a lower down payment (like 5%) increases both the loan and the monthly obligation, and typically includes mortgage insurance (PMI).
Interest Rate
Every percentage point makes a difference.
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6% on a $280,000 loan = $1,678 (P&I)
7% = $1,863/month (P&I)
That's why Flagstone Mortgage always helps clients shop for competitive rates from a variety of lenders, giving you every edge possible.
Property Taxes
Texas does not collect income tax, but property tax rates are high. Harris County's rate hovers between 2.2% and 2.6%, translating to $7,700 to $9,100/year on a $350,000 home.
This cost is rolled into your monthly mortgage payment via escrow. When tax assessments rise, so can your monthly obligation.
Insurance Costs
Texas weather poses additional risks—think hailstorms, hurricanes, and flooding. Houston homeowners can expect insurance premiums of $1,200 to $1,800 annually, or approximately $100 to $150/month. In some cases, flood insurance may be required.
Flagstone advisors help ensure insurance estimates are built into your budget from the start.
Sample Mortgage Scenarios in the Houston Market
Scenario 1: First-Time Buyer in EaDo
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Price: $325,000
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Down: 5%
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Rate: 7%
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PITI: $2,450/month (includes PMI + higher urban tax rate)
Scenario 2: Growing Family in Cypress
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Price: $400,000
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Down: 20%
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Rate: 6.75%
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PITI: $2,300/month
Scenario 3: Retiree in Galveston County (Cash Purchase)
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Price: $300,000
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No mortgage
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Taxes + insurance: ~$750/month
Every Flagstone Mortgage client receives a customized estimate; these examples serve as a starting point. Let our team guide you through scenarios that align with your goals.
Other Long-Term Costs of Homeownership in Texas
Mortgage payments are predictable. Other costs? Less so. Here's what to expect:
Annual Property Reassessments
Texas re-evaluates property values yearly. If your home's value goes up, so does your tax bill. This affects your escrow account and may increase your monthly payment.
Maintenance
Budgeting 1% of the home's value per year is a standard practice. That's $3,500/year or around $290/month on a $350,000 house.
HOA Dues
Master-planned communities and townhomes often include HOA fees ranging from $50 to $250/month. Flagstone always helps account for these when estimating your full monthly cost.
Insurance Adjustments
Insurance premiums can fluctuate year to year. We recommend reassessing your coverage annually, especially if your neighborhood becomes a higher-risk area.
How Flagstone Mortgage Helps You Lower Monthly Payments
We don't just secure loans—we help you maximize their benefits. Some of the ways Flagstone Mortgage helps lower your monthly payment:
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Match the right loan program: FHA, VA, USDA, or conventional
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Structure the ideal down payment: Lower your loan and possibly avoid PMI
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Compare interest rates: We shop lenders for you
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Plan for taxes: We show you how to dispute inaccurate tax assessments
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Refinance at the right time: We keep clients updated on when rates drop
Final Thoughts: Mortgage Payments That Fit You
The average mortgage payment in Houston offers a valuable benchmark, but what matters most is your specific scenario. At Flagstone Mortgage, we focus on precision, education, and transparency to help you navigate the real costs of homeownership.
Whether you're buying your first home, upgrading to more space, or investing in a second property, our team is ready to help you lock in a mortgage that works long-term, not just at closing.
Frequently Asked Questions (FAQs)
What is the average mortgage payment in Houston, Texas?
Around $2,150/month, based on a $350,000 home with a 20% down payment and 7% interest rate.
What's included in a monthly mortgage payment?
Principal, Interest, property taxes, and homeowners insurance (PITI). Some loans also include mortgage insurance (PMI).
Why are property taxes in Texas so high?
Texas has no state income tax, so property taxes are the primary funding source for schools and local services.
How can I lower my monthly mortgage payment?
Options include selecting the right loan type, increasing your down payment, refinancing at a lower interest rate, or appealing your property tax assessment.
Is it better to buy in Houston or a nearby suburb?
It depends on your priorities. Suburbs often offer lower property taxes and HOA dues. Flagstone advisors can run payment comparisons across areas.
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