Texas Mortgage Refinance Calculator
Texas is unusual in two ways that change how you use a refinance calculator. First, property taxes are exceptionally high — 1.6%–2.5% of assessed value — so the escrow portion of your monthly payment is much larger than in most states, and your P&I savings represent a smaller fraction of your total PITI. Second, Texas has a constitutional 80% LTV cap on cash-out refinances, which doesn't affect rate-and-term refis but is essential to understand before planning to access your equity.
This guide shows you what to enter in the calculator to get Texas-accurate results, with two worked examples from the DFW and Houston markets.
Open the Free Refinance CalculatorTexas Refinance Calculator
Pre-filled with a typical DFW scenario — no recording tax. Adjust to your loan and quoted rate.
What to Enter in the Calculator for a Texas Refinance
Your remaining principal balance from your latest mortgage statement. In Texas, property values have risen sharply in most metro areas since 2020 — your balance may now be a smaller percentage of your home value than when you originated, which improves your LTV and rate options.
Use the note rate on your Loan Estimate — not the APR. Texas lenders do not charge a specific state origination fee or recording tax surcharge, so the rate itself is the primary differentiator between lender quotes. Compare at least two offers before locking.
Texas charges no mortgage recording tax, which is a real advantage over states like New York or Maryland. Your closing costs include: lender origination (0–1%), appraisal ($500–$700), title insurance, and recording fees (a few hundred dollars). No attorney required. Total typically runs $4,500–$7,000 on most Texas loans.
The calculator shows your principal and interest savings. Your actual monthly payment (PITI) also includes property taxes and insurance. In Dallas, a $400,000 home at a 2.1% tax rate means $8,400/year in taxes — $700/month in escrow. That escrow doesn't change when you refinance. Your real PITI savings equals your P&I savings only.
Texas's constitution limits cash-out refinances to 80% LTV. Check your loan-to-value ratio before starting the refinance process. If your balance is $280,000 on a $350,000 home (80% LTV), you have no cash-out potential under Texas law. You can refinance at a lower rate but cannot pull cash out until your balance drops below 80%.
Two Texas Refinance Scenarios
Dallas–Fort Worth — $380,000 Loan
Houston — $310,000 Loan
Texas's absence of mortgage recording tax produces significantly shorter break-even periods than Georgia or New York at equivalent rate drops. Both scenarios assume a rate-and-term refinance, not cash-out.
Texas Property Tax Escrow: What It Means for Your Calculation
The refinance calculator shows you your principal and interest savings. In Texas, where property taxes routinely add $500–$1,000+ per month to your mortgage payment, it's important to understand what the calculator is and isn't showing you.
| Home Value | Tax Rate | Annual Tax | Monthly Escrow |
|---|---|---|---|
| $280,000 | 1.8% | $5,040 | $420/mo |
| $350,000 | 2.0% | $7,000 | $583/mo |
| $420,000 | 2.1% | $8,820 | $735/mo |
| $500,000 | 2.2% | $11,000 | $917/mo |
| $650,000 | 2.0% | $13,000 | $1,083/mo |
These monthly escrow amounts do not change when you refinance — they are fixed by your assessed value and tax rate. Your refinance savings are in addition to this escrow, not instead of it. Check your specific county appraisal district for your actual tax rate.
Frequently Asked Questions
How do Texas property taxes affect my monthly refinance payment?
Texas property taxes are typically 1.6%–2.5% of assessed value annually. They are paid through your escrow account and added to your monthly PITI. On a $400,000 home at 2% tax rate, that's $667/month in property taxes alone. Refinancing changes your P&I payment — not your tax escrow. The calculator shows you P&I savings; your full PITI savings equals that amount (assuming insurance stays the same).
Does the 80% LTV cash-out cap affect a rate-and-term refinance in Texas?
No. The constitutional 80% LTV limit applies only when you take cash out of your home. A rate-and-term refinance — where you change your rate or loan term without receiving funds at closing — has no LTV restriction beyond the standard lender guidelines (typically up to 95–97%). If your goal is to lower your rate without accessing equity, there is no special LTV hurdle in Texas.
How do I estimate my new escrow payment after refinancing in Texas?
Divide your annual property tax by 12 and add your monthly insurance premium. Your lender will calculate this formally at closing. You can get your current tax amount from the county appraisal district website — most Texas counties have an online property search tool. Add a two-month cushion, which is required by federal escrow rules.
What closing cost total should I enter for a Texas refinance?
Texas has no mortgage recording tax, which saves $1,500–$5,000 compared to states like New York or Maryland. Typical total closing costs on a $300,000–$450,000 Texas loan run $4,500–$7,000, including lender origination, appraisal ($500–$700), title insurance, and recording fees. No attorney is required, which further reduces costs.
Can I break even on a Texas refinance with a small rate drop?
Yes — Texas's lower closing costs (no recording tax, no attorney) make smaller rate drops more viable than in high-cost states. On a $400,000 loan, a 0.5% drop saves about $133/month. With $6,000 in closing costs, break-even is 45 months. In New York on the same loan, closing costs could be $12,000+, pushing break-even past 90 months. Use the break-even calculator to see your specific numbers.
Run Your Texas Numbers in Under 2 Minutes
Enter your balance, new rate, and Texas closing costs — no recording tax to worry about — to see your monthly savings and break-even date.
Open the Free CalculatorFor Texas's full refinancing rules — the 80% cash-out cap, property tax details, and community property — see the Texas Refinance Guide. Also: LTV Calculator · Cash-Out Calculator