The lowest tax rate in the state is 0.34% in Borden County, which is in the central area of Texas.
Harris County, which contains Houston and its suburbs, has some of the highest tax rates in not only Texas, but the U.S.
For example, a house appraised at $250,000 in Houston or one of its suburbs has an effective tax rate of 1.82% or $4,550 a year. The percentage depends on local tax rates from schools and other county concerns, so it varies per area. Property tax rates in Texas are levied as a percentage of a home’s appraised value. That said, Texas doesn’t have an income tax, so the majority of local government services such as libraries, road systems and schools are paid for by locally administered property taxes. The average effective property tax rate is 1.69%, which is good for seventh-highest in the U.S.
It’s one of the first things to add to your housing budget if you’re planning on buying a home in the state. Always consider paying more than the minimum payment to pay down the principal.Property taxes in Texas are known for being quite high compared to the rest of the country. At the end of this period your monthly payment will increase, possibly substantially, because you will be required to pay down the outstanding principal. While making interest only payments, principal is not reduced. Interest only loans may be available depending on your credit profile and provide for the payment of interest only for a set period of time, and payments of principal and interest thereafter. The APR may increase after the loan consummation. At the end of the fixed-rate period, the interest and payments may increase. Get an official Loan Estimate before choosing a loan.įor the Adjustable-Rate Mortgage (ARM) product, interest is fixed for a set period of time, and adjusts periodically thereafter. Your actual rate, payment and costs could be higher. Payments shown do not include amounts for taxes and insurance. Rates shown include approximately 1 point. Speak with a Chase Home Lending Advisor for more specific information. The cost varies based on the loan type (fixed rate or adjustable rate), loan term, and loan-to-value ratio. PMI typically costs between 0.5% and 1% of the entire loan amount on an annual basis. The purpose of the insurance is to protect the lender if you default on the note. This tool assumes that private mortgage insurance (PMI), is required if you are making a down payment of less than 20 percent of the home's purchase price. It does not take into account the processing fee or any other loan specific finance charges you may be required to pay. The APR shown here is based on the interest rate and any points. The annual percentage rate (APR), is the cost of credit over the term of the loan expressed as an annual rate. To get a custom quote based on your specific situation, contact a Chase Home Lending Advisor. Rates shown are not available in all states. Your final rate and points may be higher or lower than those quoted based on information relating to these factors, which may be determined after you apply. Important: Rate, points and APR may vary based on several factors including, but not limited to, state of property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value and your credit score.