Estimate your monthly mortgage payment in Texas, including principal, interest, property taxes, and homeowner's insurance.
Monthly Payment: $0.00
Includes PITI (Principal, Interest, Taxes, Insurance)
Understanding Your Texas Home Payment
Buying a home in Texas is a significant investment, and understanding your monthly mortgage payment is crucial for financial planning. This calculator helps you estimate your PITI (Principal, Interest, Taxes, and Insurance), which is the most common way monthly homeownership costs are presented. Let's break down each component:
1. Principal and Interest (P&I)
This is the core of your mortgage payment. It covers the money you borrowed (principal) and the cost of borrowing that money (interest). The calculation uses the standard mortgage payment formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = Monthly Payment
P = Principal Loan Amount (Home Price – Down Payment)
n = Total Number of Payments (Loan Term in Years * 12)
2. Property Taxes (T)
Texas is known for having relatively high property taxes compared to other states. These taxes are levied by local governments to fund public services like schools, roads, and emergency services. The calculator estimates your monthly property tax based on the home's price and the average property tax rate in Texas. The calculation is:
Note: Property tax rates can vary significantly by county and school district within Texas. The rate entered is an estimate. Your actual taxes may differ.
3. Homeowner's Insurance (I)
Homeowner's insurance protects you financially against damage to your home from events like fire, theft, or severe weather. Lenders typically require you to have homeowner's insurance and often collect a portion of the annual premium monthly to hold in an escrow account. This ensures the premium is paid when due. The calculator uses the annual insurance cost you provide.
Budgeting: Get a realistic estimate of your monthly housing expense before you start house hunting.
Affordability: Determine how much house you can realistically afford based on your income and desired monthly payment.
Texas Specifics: Accounts for the significant impact of property taxes in Texas.
Comparison: Compare different loan options, down payment amounts, or interest rates.
Disclaimer: This calculator provides an estimate for informational purposes only. It does not include potential costs such as Private Mortgage Insurance (PMI), Homeowner Association (HOA) dues, or closing costs. Consult with a qualified mortgage lender or real estate professional for precise figures and personalized advice.
function calculatePayment() {
var homePrice = parseFloat(document.getElementById("homePrice").value);
var downPayment = parseFloat(document.getElementById("downPayment").value);
var loanTerm = parseInt(document.getElementById("loanTerm").value);
var annualInterestRate = parseFloat(document.getElementById("annualInterestRate").value);
var annualPropertyTaxRate = parseFloat(document.getElementById("annualPropertyTax").value);
var annualHomeInsurance = parseFloat(document.getElementById("annualHomeInsurance").value);
var resultElement = document.getElementById("result");
// Input validation
if (isNaN(homePrice) || isNaN(downPayment) || isNaN(loanTerm) || isNaN(annualInterestRate) || isNaN(annualPropertyTaxRate) || isNaN(annualHomeInsurance)) {
resultElement.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (homePrice <= 0 || downPayment < 0 || loanTerm <= 0 || annualInterestRate < 0 || annualPropertyTaxRate < 0 || annualHomeInsurance homePrice) {
resultElement.innerHTML = "Down payment cannot be greater than the home price.";
return;
}
var principal = homePrice – downPayment;
var monthlyInterestRate = (annualInterestRate / 100) / 12;
var numberOfPayments = loanTerm * 12;
var principalAndInterest = 0;
if (monthlyInterestRate > 0) {
principalAndInterest = principal * (monthlyInterestRate * Math.pow(1 + monthlyInterestRate, numberOfPayments)) / (Math.pow(1 + monthlyInterestRate, numberOfPayments) – 1);
} else {
principalAndInterest = principal / numberOfPayments; // Handle 0% interest
}
var monthlyPropertyTax = (homePrice * (annualPropertyTaxRate / 100)) / 12;
var monthlyHomeInsurance = annualHomeInsurance / 12;
var totalMonthlyPayment = principalAndInterest + monthlyPropertyTax + monthlyHomeInsurance;
if (isNaN(totalMonthlyPayment) || totalMonthlyPayment < 0) {
resultElement.innerHTML = "Calculation error. Please check your inputs.";
} else {
resultElement.innerHTML = "Monthly Payment: $" + totalMonthlyPayment.toFixed(2) +
"Includes PITI (Principal, Interest, Taxes, Insurance)";
}
}