Mortgage Calculator in Waco, TX

Buying in Waco, TX: what the numbers look like

With roughly 138,486 residents, Waco is a mid-sized Texas market. Census figures (ACS 5-Year 2023) put median household income here at $51,468, or about $4,289 a month before tax. Texas levies no state income tax on wages, which leaves more of that gross figure available for a housing payment than in most states.

Lenders commonly apply what underwriters call the 28/36 guideline: housing costs up to 28% of gross monthly income, and total debt payments up to 36%. Applied to the Waco median, that puts the housing ceiling near $1,201 a month and the all-debt ceiling near $1,544. Those figures cover principal, interest, property tax and insurance together, not the loan payment alone, which is why a payment that looks affordable in isolation can still fail an affordability test.

Three local variables move the monthly number more than the headline interest rate does. Property tax rates are set county by county rather than statewide, so two homes at the same price in different parts of the Waco area can carry different bills. Homeowners insurance follows local risk, and coastal or wildfire-exposed areas price very differently from inland ones. Private mortgage insurance applies below 20% down and disappears once equity crosses that line, which often matters more to the monthly figure than shaving a quarter point off the rate.

The calculator above breaks a Waco payment into principal, interest, property tax, insurance and PMI so you can see which part actually drives the total. Adjust the down payment first: it changes the loan size and the PMI question at the same time.