How Much Would the Monthly Payment Be on a Home in DFW?
November 6, 2026
By Elena Garrett, Realtor, KW Central
A purchase-price, monthly-payment, and cash-to-close reference chart | November 2026
“If I buy a $250,000 house, what would my monthly payment be?”
It’s one of the questions I hear most often. The honest answer is: it depends. Two buyers purchasing houses at the same price may have very different payments because of their down payments, interest rates, property taxes, insurance, and HOA fees.
But we can still establish a useful starting point. I ran a series of estimates using the same FHA loan settings for homes priced from $175,000 to $450,000. This lets you compare purchase prices without changing the assumptions every time. This is an educational example—not a lender’s quote, a promise of qualification, or a prediction of the taxes and insurance on a particular house.
The Assumptions Behind the Numbers
| Item | Assumption used |
|---|---|
| Loan type | FHA purchase mortgage |
| Loan term | 30 years, fixed rate |
| Interest rate | 6.875% |
| Down payment | 3.5% of purchase price |
| Property taxes | 2.72% of purchase price annually |
| Homeowners (hazard) insurance | 0.68% of purchase price annually |
| FHA upfront mortgage insurance | 1.75% of base loan amount, financed into the loan |
| FHA annual mortgage insurance | 0.55% of base loan amount, estimated monthly |
| HOA dues | $0 assumed |
| Seller concessions or lender credits | None assumed |
| Buyer broker fee in calculator | 0% assumed |
The 6.875% interest rate, 2.72% tax rate, and 0.68% insurance rate are selected inputs for this illustration, not universal DFW rates. The estimates came from CapApp ONE calculations using those inputs. No homestead exemption is separately modeled in the tax assumption.
FHA generally permits a minimum down payment of 3.5% for eligible borrowers; it is not automatically a zero-down mortgage. FHA also has upfront and annual mortgage insurance premiums.
Monthly Payment and Cash-to-Close Chart
| Purchase price | 3.5% down payment | Principal & interest | Taxes + home insurance + FHA MIP | Total monthly payment | Est. cash to close with 3.5% down |
|---|---|---|---|---|---|
| $175,000 | $6,125 | $1,128.80 | $573.24 | $1,702 | $12,516 |
| $200,000 | $7,000 | $1,290.06 | $655.12 | $1,945 | $13,967 |
| $225,000 | $7,875 | $1,451.32 | $737.02 | $2,188 | $15,418 |
| $250,000 | $8,750 | $1,612.58 | $818.91 | $2,431 | $16,870 |
| $275,000 | $9,625 | $1,773.83 | $900.79 | $2,675 | $18,321 |
| $300,000 | $10,500 | $1,935.09 | $982.69 | $2,918 | $19,772 |
| $325,000 | $11,375 | $2,096.35 | $1,064.58 | $3,161 | $21,223 |
| $350,000 | $12,250 | $2,257.61 | $1,146.46 | $3,404 | $22,674 |
| $375,000 | $13,125 | $2,418.86 | $1,228.36 | $3,647 | $24,125 |
| $400,000 | $14,000 | $2,580.12 | $1,310.26 | $3,890 | $25,576 |
| $425,000 | $14,875 | $2,741.38 | $1,392.13 | $4,134 | $27,027 |
| $450,000 | $15,750 | $2,902.64 | $1,474.03 | $4,377 | $28,478 |
Source: CapApp ONE estimates supplied for this illustration. Monthly totals and cash-to-close figures are rounded to the nearest dollar. The third column of monthly costs combines property tax, homeowners insurance, and monthly FHA mortgage insurance. This table does not include HOA dues, utilities, home maintenance, or other ownership expenses.
Under these particular settings, each additional $25,000 in purchase price adds approximately $243 per month. That’s a handy way to read this table, but it is not a universal rule. A change in taxes, insurance, rate, down payment, or financing program will change the relationship.
How Did We Calculate the Monthly Payment?
Let’s use the $200,000 home as an example.
1. Start with the down payment. At 3.5%, the buyer’s down payment is $7,000, leaving a base loan amount of $193,000.
2. Include FHA’s upfront mortgage insurance. In this example, 1.75% of the $193,000 base loan is $3,377.50. We assume that amount is financed, bringing the amount being repaid to approximately $196,378.
3. Calculate principal and interest. At 6.875% over 30 years, the estimated payment is $1,290.06 per month.
4. Add estimated property taxes. $200,000 × 2.72% ÷ 12 = $453.33 per month.
5. Add estimated homeowners insurance. $200,000 × 0.68% ÷ 12 = $113.33 per month.
6. Add monthly FHA mortgage insurance. Using the illustrated 0.55% annual MIP assumption, the calculator shows $88.46 per month.
That gives us approximately $1,945 per month ($1,290.06 + $453.33 + $113.33 + $88.46).
Notice something important: the mortgage principal and interest are not the full monthly payment. In this example, the taxes and insurance-related charges add about $655 a month. A property with an HOA would add another cost.
What Does “Cash to Close” Actually Mean?
A low down payment does not mean the down payment is the only money involved in purchasing a home.
Cash to close is the amount the buyer must have available at settlement after accounting for the down payment, applicable closing expenses, prepaid costs, deposits already paid, credits, and other adjustments.
There are three major pieces in our calculator’s estimates:
- Down payment: The portion of the purchase price you pay instead of borrowing.
- Prepaid expenses and escrow funding: Money collected for expenses such as homeowners insurance, property taxes, and interest that must be covered at or shortly after closing. These are not all extra fees; much of this money funds expenses you would owe as a homeowner anyway.
- Fixed closing charges: Costs such as the appraisal, title- and escrow-related charges, survey, recording, and certain lender or settlement services.
Let’s look at the detailed calculation for the $400,000 home.
Example: Cash Needed to Close on a $400,000 Home
| Category | Calculator amount |
|---|---|
| 3.5% down payment | $14,000.00 |
| Prepaid expenses and reserves | $9,011.46 |
| Fixed closing charges | $2,564.49 |
| Total estimated cash to close | $25,575.95 |
That’s why a buyer who has saved $14,000 for a 3.5% down payment on a $400,000 home may still need additional funds to complete the purchase under these assumptions.
Where Do the $9,011 in Prepaid Expenses Come From?
For the $400,000 example, the calculator assumes 14 months of homeowners insurance, 4 months of property taxes, and 30 days of prepaid interest.
| Prepaid item | How it is estimated | Approximate amount |
|---|---|---|
| Homeowners insurance | 14 × $226.67/month | $3,173.33 |
| Property taxes | 4 × $906.67/month | $3,626.67 |
| Prepaid mortgage interest | 30-day allowance in calculator | $2,211.46 |
| Total | $9,011.46 |
The insurance allowance can include the first annual premium and money deposited into escrow for upcoming bills. The tax reserve helps fund future property taxes, while prepaid interest covers interest accruing before the regular payment schedule begins. Exact requirements depend on the lender, closing date, insurance billing, and escrow calculation.
What Are the $2,564 in Fixed Closing Charges?
These were the items and amounts visible in the calculator’s $400,000 example:
| Charge | Estimated amount |
|---|---|
| Escrow fee | $600.00 |
| Mortgage title policy | $100.00 |
| Appraisal | $425.00 |
| Credit report | $75.00 |
| Pest inspection | $150.00 |
| Survey | $600.00 |
| Recording fee | $200.00 |
| State guaranty fee | $3.00 |
| Other title-related fees and endorsements (remaining balance) | $411.49 |
| Total fixed closing charges | $2,564.49 |
The screenshots also mark several lender-title policy endorsements as buyer-paid without displaying their individual amounts. The $411.49 balance is a reconciliation to the calculator’s fixed-charge total, not a separately verified fee quote.
These charges are illustrative, not a list of fees that every Texas transaction must have. Which party pays a title charge or survey, whether an existing survey is accepted, whether additional inspections are needed, and what a lender charges can all vary. A general home inspection, HOA transfer fees, or other transaction-specific expenses may not be represented in this example.
Why Your Actual Payment May Be Different
Property taxes: Our 2.72% assumption is not the tax rate for every home in DFW. Rates vary by jurisdiction, and taxable value and applicable exemptions matter. A seller’s current tax bill may not predict yours.
Homeowners insurance: The 0.68% figure is just the assumption used in this calculator. An insurer’s actual quote depends on the house, location, replacement cost, roof, coverage, deductible, and other factors.
Loan terms: Interest rates change, and a borrower’s credit, loan program, down payment, discount points, and other details can produce a different payment. Some programs that help with upfront costs may have their own interest rates or repayment terms.
HOA and other costs: An HOA or other association fee, flood insurance if required, utilities, and maintenance need to be evaluated separately. Insurance and tax costs can also change after closing even when the principal-and-interest portion of a fixed-rate loan remains unchanged.
Credits and deposits: Seller contributions, lender credits, assistance funds, earnest money already deposited, or changes in the closing date can affect how much money remains due at closing.
How to Use This Chart When Searching for a Home
- Start with a total monthly payment you are comfortable with, leaving room in your household budget for maintenance and savings.
- Find the nearest purchase-price range in the chart. Remember that these estimates use the same tax and insurance assumptions for every price.
- Use a real estate search map to explore where homes at that price are actually offered. Set a maximum purchase price, select your minimum bedrooms and bathrooms, and look across the broader region before narrowing your preferred neighborhoods.
- Recalculate every promising property. Use its likely post-purchase taxes, a property-specific insurance quote, HOA fees, and a lender’s financing estimate. The result may be higher or lower than this table.
The point of this chart isn’t to tell you what you must spend. It’s to give you a realistic starting point and help you ask better questions before deciding which homes belong on your list.
A home’s asking price is only the beginning of the affordability calculation. The number that matters for your day-to-day budget is the full monthly cost—and the cash you need to complete the purchase.
Calculation date: November 2026. Educational estimates based on the stated CapApp ONE inputs and closing-cost settings, not a credit decision or mortgage offer. A licensed lender should provide a property- and borrower-specific Loan Estimate; actual costs are confirmed through the closing process.
