Find out how much house you can afford based on your income, debts, and down payment.
✓Based on the 28/36 debt-to-income guideline
✓Accounts for your existing monthly debts
✓Shows your maximum home price and monthly payment
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Quick comparison
Housing DTI guideline
~28% of gross income
Total DTI guideline
~36% of gross income
Includes in payment
PITI + PMI + HOA (as entered)
Still budget separately
Maintenance, utilities, moving
Best use
Set a ceiling before house hunting
The 28/36 rule explained
Lenders commonly use the 28/36 rule: your total housing payment should stay under about 28% of your gross monthly income, and your total debt payments (housing plus car loans, student loans, and credit cards) should stay under 36%. Some loan programs allow higher DTI with compensating factors, but stretching to the underwriting maximum is how buyers become house-poor. Our affordability calculator works backward from a target debt-to-income ratio to estimate the highest home price that keeps you within a comfortable range.
Beyond the monthly payment
Affordability is about more than qualifying for a loan. Remember to budget for closing costs, moving expenses, maintenance (often about 1% of the home's value per year), utilities, and an emergency fund. Buying near the top of your approval leaves little room for rate changes, repairs, or life events, so many households target a payment below the lender’s maximum.
How to use this calculator effectively
Start with take-home realities, not just gross income rules. Enter debts accurately, then stress-test a higher interest rate and higher insurance quote. If the affordable price collapses under a 1% rate bump, narrow your search now rather than after you are emotionally attached to a listing. Pair this tool with a state calculator when taxes and insurance differ sharply from national defaults.
Income, debts, and pre-approval
Self-employed borrowers, recent job changes, and variable overtime need extra documentation — the calculator cannot see underwriting nuances. Use it to set a personal ceiling, then let a licensed loan officer translate that into a pre-approval that sellers will trust.
Checklist before you apply
Use gross monthly income from stable sources you can document.
Include car loans, student loans, and minimum credit-card payments.
Add a realistic tax and insurance estimate for your target ZIP.
Leave room under the maximum for maintenance and emergencies.
Get pre-approved so your shopping range matches lender reality.
How much house you can afford under DTI guidelines — and why lender maximums are not comfort ceilings.
What is the 28/36 rule?
A common guideline: housing costs stay under about 28% of gross monthly income, and total debt payments under about 36%. Some programs allow higher ratios with compensating factors, but stretching to the underwriting max is how buyers become house-poor.
Why is my pre-approval higher than this calculator?
Lenders may use different DTI caps, residual-income tests, or compensating factors. This tool targets a comfortable ceiling. Prefer the lower number when planning — leave room for maintenance, utilities, and rate or insurance surprises.
Should I include taxes and insurance?
Yes. Affordability without escrow is misleading. Enter realistic tax and insurance for the ZIP you will shop, or use the main calculator’s state selector for indicative defaults before you fine-tune.
What debts count toward DTI?
Typically car loans, student loans, personal loans, and minimum credit-card payments, plus the projected housing payment. Child support and other recurring obligations may also count — ask your loan officer what underwriting includes.
Property location
Affordability depends heavily on local taxes and insurance — pick your county for more realistic housing costs.
Median home price
$350,000
Property tax rate
1.60%
Est. insurance
$2,400/yr
Select county for FHA limit
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Texas market guide
Local tax, insurance, program, and payment context for the location you selected — county defaults refine the calculator; the guide remains state-level.
Housing market snapshot
Texas spans high-growth metros (Dallas - Fort Worth, Austin, Houston, San Antonio) and far more affordable secondary markets. No state income tax shifts more of the housing cost into property taxes and insurance. With an indicative median near $350,000, Texas sits in the middle of the national price distribution. Small rate changes move the payment more than many first-time buyers expect.
Property taxes and homestead notes
Texas's average effective property tax rate of roughly 1.60% ranks among the higher statewide averages nationally. On a median-priced home, taxes can rival or exceed the insurance line item in your payment. Texas property taxes are among the higher effective rates nationally. Homestead exemptions (general, over-65, disability) and appraisal caps for homesteads can help - file with your county appraisal district.
Homeowners insurance
Indicative average homeowners insurance around $2,400/year is elevated versus many states. Treat insurance shopping as part of your offer strategy, not an afterthought. Hail in North Texas, wind/hurricane on the Gulf Coast, and rising premiums statewide make insurance a first-class budget item. Percentage wind/hail deductibles are common.
Worked payment example
Using Texas's indicative median of $350,000, a 20% down payment of $70,000, a 6.75% rate, and local tax/insurance defaults, principal and interest is about $1,816 with a full monthly payment near $2,483 (including roughly $467 tax and $200 insurance). With only 5% down ($17,500), the same price point jumps to about $2,976 per month because the loan is larger and PMI is typically required — roughly $152 of that total.
A common comfort check is keeping total housing cost near 28% of gross income. At $2,483/month, that implies ballpark gross income around $106,403 per year before other debts. Run your real income and debts through our home affordability calculator rather than relying on this rule of thumb alone.
Texas State Affordable Housing Corporation / TDHCA programs
Local bond and DPA programs in major metros
VA loans widely used near large military installations
Practical tips
File for homestead exemption after closing - it materially affects escrow.
Get insurance quotes before option periods expire, especially on the coast.
Model MUD/PID taxes in suburban master-planned communities.
Figures on this page are educational estimates for Texas, not a lender quote. County tax assessors, insurance agents, and licensed mortgage professionals can confirm the numbers for a specific address. See our methodology page for the formulas and assumptions behind every estimate.
Common questions about estimating a mortgage payment in Texas, including local tax and insurance context.
What is the average property tax rate in Texas?
Texas's indicative average effective property tax rate is about 1.60% of home value per year. On a $350,000 home, that is roughly $5,600 annually, usually collected monthly through escrow. Your county bill can differ — and homestead programs may reduce what you owe.
How much is a typical mortgage payment in Texas?
On the indicative median of $350,000 with 20% down, local tax/insurance defaults, and a 6.75% rate, a full monthly payment is about $2,483. Your quote will differ with price, credit, loan type, and exact escrow items.
Does this calculator include Texas homeowners insurance?
Yes. We default to an indicative Texas average near $2,400 per year ($200/month). Replace it with a real quote for your address — especially if you need wind, hurricane, wildfire, or flood endorsements.
What assistance programs should Texas buyers know about?
Texas State Affordable Housing Corporation / TDHCA programs. Also explore: Local bond and DPA programs in major metros; VA loans widely used near large military installations. Program rules change — confirm eligibility with the agency or a participating lender.
Current US Mortgage Rates
30-year fixed
7.24%
As of October 29, 2026
15-year fixed
6.60%
As of October 29, 2026
National averages from the Freddie Mac Primary Mortgage Market Survey, published weekly through the Federal Reserve (FRED). Your quoted rate may differ based on credit, down payment, and loan type.
