What Does a $400,000 House Actually Cost Per Month in Texas?

One of the first things I tell every buyer is that the sticker price is only the beginning. A $400,000 house in Texas comes with a monthly reality that includes the mortgage, property taxes, homeowners insurance, and sometimes private mortgage insurance. Understanding that total, not just the price, is what separates buyers who sleep well from buyers who are surprised. Here is the honest math, built on clearly labeled assumptions, so you can see exactly how the number is put together.

The Real Monthly Math

Every figure below is a rough estimate based on these assumptions: a 30-year fixed-rate mortgage at 6.5% (shown as an example only, never a quote or a promise), a blended Texas property tax rate of about 2.3% of the purchase price per year, homeowners insurance of about $150 per month, and no HOA assumed. Your actual numbers will depend on your rate, your county, your lender, and your home.

Where the Money Goes

Principal and interest. This is the heart of your mortgage. Principal pays down the loan you borrowed; interest is the cost of borrowing it. Together they are the largest piece of the payment in every scenario above.

Property taxes. In Texas, local property taxes are how communities fund schools and public services, and rates vary by county and city. At a blended rate of about 2.3% of the purchase price, that works out to roughly $767 per month on a $400,000 home. This is why the exact tax number matters so much: two nearby homes can carry very different annual tax bills depending on the district.

Homeowners insurance. Lenders require it, and it protects your home from fire, weather, and other damage. We assumed about $150 per month here, but your quote will depend on your home, your coverage, and your provider.

Private mortgage insurance, or PMI. When your down payment is under 20%, most conventional lenders require PMI. It protects the lender, not you, if you stop making payments. The good news: PMI is usually temporary and typically drops off once you build about 20% equity in the home through payments and appreciation.

Why Texas Is Different

Texas has no state income tax, which is a real advantage for your paycheck. But that trade-off is worth understanding: local property taxes run higher here because that is how communities fund schools and services. The result is that your monthly cost of ownership in Texas leans more on taxes than it would in many other states. None of this makes Texas a bad place to buy. It just means you need to budget with the tax piece in the number, not discover it later.

What Could Change the Number

• The rate. A higher or lower mortgage rate shifts the principal and interest piece up or down by hundreds of dollars per month.
• The down payment. A bigger down payment means a smaller loan, lower principal and interest, and no PMI at 20% or more.
• The tax district. Property tax rates vary across Texas counties and cities, so the same priced home can carry a different monthly tax bill in Williamson County than in Bell County.
• Insurance. Coverage levels and carriers change the premium, and so does where in Texas your home sits.
• An HOA. Many Central Texas communities have HOA fees that run monthly or yearly, and those are not included in the table above.

Run Your Own Numbers

Your actual payment will be personal to you, and the fastest way to see it is to run your own assumptions. Start with the mortgage calculators on this site, then pull a real tax estimate for the exact home and county you are eyeing. I help buyers build these numbers every week, and I would love to help you build yours.