What Makes Up a Frisco TX House Payment?
Frisco TX House Payment = Principle + Interest + Property Taxes + Hazard Insurance + Mortgage Insurance (if applicable) + HOA Dues (if applicable)
Most people buying a home in Frisco TX purchase their home through mortgage financing. Hence, the house repayment typically constitutes principle and interest payments.
Principle on your Frisco TX home
Each mortgage monthly payment is dedicated to repaying the principle loan amount.
Interest on your Frisco TX home
When buying a home in Frisco Texas, interest is repaid based on the term of the loan and the interest rate. Interest is typically paid in arrears, which means, If you make a February 1st mortgage payment, the total interest you paid is for January.
There are several type of mortgages that affect your interest calculation:
- Fixed mortgages – Your payment stays the same during the length of your term.
- Adjustable rate mortgages – After a certain “period”, the payment changes as the rate changes. The rate changes due to market fluctuations.
Frisco TX Property Taxes
Frisco Texas Property taxes are determined by the local county tax appraisal district. In Frisco TX, your home may be located in the Denton or Collin county jurisdictions.
Property Taxes in Frisco TX are made up of :
- School taxes (depending on school district)
- City of Frisco taxes
- County taxes (Collin or Denton depending) and community college
As an estimate, you could figure a 2.2% – 3% property tax payment based on the tax assessment value.
Here are two examples:
- Example #1: Let’s assume that the tax assessment was $100,000 and the property taxes was 2.5%. If the property is not a primary residence (Texas homestead), you would pay $100,000 x 2.5% = $2,500 per year or $208.33 per month for property taxes. If the property is a Texas homestead, you will qualify for a Homestead exemption ie $15,000 break from your property taxes for your school taxes.
- Example #2: Your property is valued at $100,000. The property taxes was made up of 1.5% school taxes and 1% on the others. Your property taxes with homestead exemption will be = ($100,000 – $15,000) x 1.5% + ($100,000 x 1%) = $2,275 per year or $189.58 per month.
Note: You only receive an exemption from your school taxes. There are also other exemptions may apply: Disability, Over 65, and Over-55 surviving spouse of a person who received the Over-65 exemption.
Frisco TX Hazard Insurance
When buying a home in Frisco Texas, hazard Insurance must be carried at all times if the property has a mortgage. Hazard insurance protects you and the lender in the event of fire, storms, theft and other events as stated in your policy. Your lender must review your policy to make sure you have adequate coverage before they approve your final loan. There is not an estimated figure to provide since the premiums vary.
The first place to receive a quote would be with your auto policy. Most insurance companies give additional discounts if the auto and home are insured by the same company. Hence, it *may be cheaper for both your vehicles and home policies.
If you compare 2 properties with the same features, the newer the property (Year Built), the cheaper the hazard insurance may be.
Frisco TX Mortgage Insurance
If you are considering buying a home in Frisco TX and you do not put 20% down payment on your loan, you will be required to pay mortgage insurance.
- In a conventional loan, it is called a Private Mortgage Insurance.
- In a FHA loan, it is called FHA Mortgage Insurance.
Both types of mortgage insurance the same objective. This mortgage insurance premium is paid by the borrower (you) to protect the lender in case you default on your loan.
Frisco TX HOA Dues
When buying a home in Frisco Texas, keep in mind that some properties are located in a mandatory homeowners’ association. The homeowners’ associations regulate the common areas, landscaping, architectural improvements on properties. You must be a member of the homeowners association in order to live in a community with mandatory HOA. There are “rules” and “bylaws” to follow in such communities. Hence, you must read the Homeowners Rules, Regulations and Bylaws very carefully.
- In Frisco TX, most communities that do not have a community pool usually charge about $200 – $300 per year for HOA dues. They still have common areas and HOA management fees to pay for.
- In communities with swimming pools, they could run about $400-$600 per year and communities with elaborate amenity centers such as clubhouses, fitness centers and resort-style community pools could be well over $800/year.
- Gated communities in Frisco TX usually cost over $1,200 and some as high as $2,500-$4,000 in higher-end luxury neighborhoods. The roads within a gated community is considered private property of the community. Hence, it is not serviced by the City. Maintenance and road repairs are paid through the HOA dues. Another reason gated communities have higher than normal HOA dues because they have 24-hour guards at security entrances.
Summing all this Up Mathematically
Let’s say that you are buying a Frisco Texas home for $200,000 with the following assumptions:
- Interest Rate = 4%
- Down Payment = 20%
- Length of Loan = 30-year mortgage
- Annual Taxes = $4,200
- Annual Insurance = $900
- Annual HOA Dues = $480
Your Frisco TX House payment per month would be:
| Monthly Payment & Interest | $763.86 |
| Monthly Property Taxes | $350 |
| Monthly Hazard Insurance | $75 |
| HOA Dues | $40 |
| Total Payment | $1,228.86 |
Disclaimer: HOA dues are typically not a part of the mortgage payment.
Every home loan is different and the terms of your note or the terms of the loan you are searching for may use a different method of calculating your mortgage payment than the calculators above. This tool is provided purely for comparative reasons and may / may not reflect the actual payments of your loan. It is imperative you consult with a mortgage professional or your existing lender for exact payment figures. We are not responsible for any typographical errors, omissions or mistakes. Not every applicant qualifies nor is every program available for each unique borrower.
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Part 2: Understand the Difference between Pre-Qualification & Pre-Approval and How to Strategize for a Better Negotiation |
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Part 4: How much funds are needed to purchase a home in Frisco TX |
Map of Frisco Texas
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3:16 team REALTY is a locally-owned real estate company serving Frisco
TX and the surrounding cities. Find out
(214) 783-2210
info (at)
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Loreena Yeo is the broker of record of 