Monthly Cost of a $300,000 Home in Texas (2025 Rates)
Buying a $300,000 home in Texas? At 6.85% on a 30-year loan with 20% down, expect to pay $2,304/month — or $2,783/month on a 15-year term. Income needed to qualify: ~$98,755/year.
Monthly Payment Breakdown (30-Year, 20% Down)
$1,573
Principal & Interest
$415
Property Tax/mo
$317
Home Insurance/mo
$2,304
Total Monthly
| Component | Monthly | Annual |
|---|---|---|
| Principal & Interest (6.85%) | $1,573 | $18,871 |
| Property Tax (1.66% rate) | $415 | $4,980 |
| Homeowner's Insurance | $317 | $3,800 |
| PMI (with 20% down) | $0 | $0 |
| Total Monthly Payment | $2,304 | $27,651 |
With 10% Down (PMI Required)
A 10% down payment on $300,000 means a $30,000 down payment and a $270,000 loan. PMI adds $113/month until you reach 20% equity (estimated: April 2033).
| Component | Monthly |
|---|---|
| Principal & Interest | $1,769 |
| Property Tax | $415 |
| Insurance | $317 |
| PMI (~0.5%/year) | $113 |
| Total | $2,613 |
30-Year vs 15-Year Mortgage
| Metric | 30-Year (6.85%) | 15-Year (6.2%) |
|---|---|---|
| Monthly P&I | $1,573 | $2,051 |
| Total Monthly | $2,304 | $2,783 |
| Total Interest Paid | $326,144 | $129,230 |
| Total Cost | $566,144 | $369,230 |
| Interest Saved (15yr) | — | $196,913 |
Equity Growth Over Time
At Purchase
20.0% equity
Balance: $240,000
After 5 Years
24.8% equity
Balance: $225,550
After 10 Years
31.6% equity
Balance: $205,217
Loan Paid Off
100.0% equity
Balance: $0
What Income Do You Need?
Lenders typically require housing costs to stay at or below 28% of gross monthly income. To comfortably afford a $2,304/month payment, you need a gross income of at least $98,755/year ($8,230/month before taxes). With a front-end ratio of 36% (common for conventional loans), you'd need $76,810/year.
Payment at Different Interest Rates
| Interest Rate | Monthly P&I | Total Monthly | Total Interest |
|---|---|---|---|
| 4.8% | $1,266 | $1,998 | $215,926 |
| 5.8% | $1,416 | $2,148 | $269,709 |
| 6.8% current | $1,573 | $2,304 | $326,144 |
| 7.8% | $1,736 | $2,468 | $384,961 |
| 8.8% | $1,905 | $2,637 | $445,889 |