1. What is the House Payment Formula?

The house payment formula calculates your monthly mortgage payment including principal and interest, plus Texas property taxes. It's based on standard amortization formulas with additional tax considerations specific to Texas.

2. How Does the Calculator Work?

The calculator uses the standard amortization formula plus taxes:

Where:

• \( P \) — Principal loan amount ($)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in years × 12)
• \( \text{taxes} \) — Monthly property tax amount (annual taxes ÷ 12)

Explanation: The formula calculates the fixed monthly payment that would pay off the loan over the specified term, plus the monthly property tax amount.

3. Texas Property Tax Considerations

Details: Texas has some of the highest property taxes in the nation, averaging about 1.8% of home value annually. This calculator includes these taxes in your monthly payment estimate.

4. Using the Calculator

Tips: Enter the loan amount, interest rate (as a percentage), loan term in years, and annual Texas property tax amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include homeowners insurance?
A: No, this calculator only includes principal, interest, and property taxes. You may need to add insurance separately.

Q2: How do I estimate Texas property taxes?
A: Texas taxes average 1.8% of home value annually. For a $300,000 home, expect about $5,400/year ($450/month).

Q3: Are Texas property taxes included in escrow?
A: Typically yes, most lenders require escrow accounts for taxes and insurance in Texas.

Q4: Why are Texas taxes so high?
A: Texas has no state income tax, so local governments rely more on property taxes for revenue.

Q5: Can I pay Texas property taxes monthly?
A: Most lenders collect 1/12 of the annual tax bill each month as part of your mortgage payment.