Are Houston mortgage rates lower than the national average?

Houston rates are generally in line with or slightly below national averages due to affordable home prices and strong lender competition. However, higher property taxes significantly increase total monthly housing costs.

How much are property taxes in Houston?

Houston-area property taxes average about 2.2% of assessed value annually. On a $320,000 home, that is approximately $7,040/year or $587/month added to your mortgage payment.

Do I need flood insurance in Houston?

Many Houston homes are in FEMA-designated flood zones and require flood insurance. Even outside flood zones, insurance is recommended given Houston's history of flooding. Premiums range from $1,000 to $4,000+ annually.

What are the best areas to buy in Houston?

Popular areas include Sugar Land, Katy, The Woodlands, and Pearland for suburban living. Inside the loop, Heights, Montrose, and Rice Military offer urban options. Prices vary significantly by neighborhood.

Houston Mortgage Rates: Today's Best Houston Rates

Compare current mortgage rates in the Houston metro area. Affordable home prices, no state income tax, but higher property taxes. Strong FHA and VA loan activity.

Houston Mortgage Market Overview

$320K

Median Home Price

$766K

Conforming Limit

2.2%

Avg. Property Tax Rate

State Income Tax

What Makes Houston Unique

Houston offers some of the most affordable housing in any major U.S. metro. Median prices around $320,000 mean most homes fall well within conforming loan limits, keeping rates competitive. Texas has no state income tax, but makes up for it with property tax rates averaging 2.2% — among the highest in the nation. This significantly impacts monthly mortgage payments.

High Property Taxes

At 2.2%, property taxes on a $320K home are ~$587/month — added to your mortgage payment. This is $350+/month more than the same home would cost in California.

No State Income Tax

Texas has zero state income tax, which increases your take-home pay and can improve your DTI ratio for mortgage qualification. Use our DTI calculator to check.

Flood Insurance

Many Houston-area homes require flood insurance due to the flat terrain and hurricane risk. Annual premiums of $1,000–$4,000 add to monthly housing costs.

Strong VA Market

Houston has a large military and veteran population. VA loans are extremely popular and affordable here. See VA loan details.

Tips for Houston Homebuyers

Houston-Specific Advice

Budget for property taxes carefully — they can add $400–$800/month on top of your mortgage
Check flood zone status — get a flood determination before making an offer; flood insurance can be expensive
Look into Texas Veteran Land Board — offers below-market rate loans to Texas veterans
Consider new construction — Houston's builder-friendly regulations mean many new developments with competitive pricing
Factor in HOA fees — many Houston subdivisions have mandatory HOAs of $100–$400/month

Use our mortgage calculator to estimate payments including Houston's property taxes, or check what you can afford.