Mortgage Calculator

Combined rates — city, school district, county, community college, and hospital district — run about 1.70% in McKinney, 1.73% in Plano, and 1.76% in Frisco per $100 of assessed value. That is meaningfully lower than Dallas (about 2.26%) or Fort Worth (about 2.18%). On a $500,000 home the gap between Frisco and Dallas is roughly $200 a month, which is why the tax rate field on this calculator moves the payment more than most buyers expect. Rates are re-set every fall by each taxing entity.

If the home is your primary residence, the homestead exemption reduces the assessed value your taxes are calculated against — the school district portion alone knocks $100,000 off assessed value, and most cities and counties add their own percentage exemption on top. It also caps how fast your assessed value can rise to 10% a year regardless of what the market does. You file once with the county appraisal district after closing, and it is free. Because this calculator applies a flat rate to the full price, treat its tax figure as the high end for a home you will live in.

On a conventional loan, PMI is required below 20% down and typically runs 0.3–1.5% of the loan amount per year depending on credit score and down payment. You can request cancellation once you reach 20% equity, and the servicer must drop it automatically at 22% based on the original amortization schedule. Extra principal payments get you there sooner — turn on Advanced above to see how much sooner. FHA loans are different: mortgage insurance stays for the life of the loan if you put down less than 10%.

Newer master-planned developments often finance their own roads, water, and drainage through a Municipal Utility District or Public Improvement District, and that bond shows up as an extra levy on your tax bill. In parts of Prosper, Celina, and Little Elm this pushes the combined rate to 2.8–3.3% until the bonds are paid down. A $600,000 new build there can carry $500+ a month more in taxes than an equivalent home in an established Plano neighborhood. Always ask for the specific tax rate at the address, not the city average.

A 15-year loan carries a lower rate and cuts total interest dramatically, but the higher required payment removes flexibility. A common middle path is taking the 30-year and paying it like a 15-year voluntarily — you keep the lower required payment as a safety valve in a bad month. Set the term to 30 years above, then add an extra monthly payment under Advanced to compare the payoff dates side by side.

Most lenders look for a total debt-to-income ratio at or below 43%, counting the full PITI payment — principal, interest, taxes, and insurance — plus car loans, student loans, and minimum credit card payments. Because Texas property taxes are high and there is no state income tax, the same income supports a smaller purchase price here than in a low-tax-rate state at the same income. Work backwards: pick a monthly payment you are comfortable with, then adjust the home price above until the total matches.

No. It is a planning tool. Your real rate depends on credit score, loan program, points, and the day you lock. Homeowners insurance in North Texas varies widely with roof age and hail history, and the tax rate depends on the exact address, not the city. Use this to narrow a price range, then get a real pre-approval before you write an offer.