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Delaware vs Texas:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Delaware and Texas. Updated for 2026.

MetricDelawareTexas
Median Home Price$355K$310K
Property Tax Rate0.56%1.8%
Avg Closing Costs$12K$5K
Closing Cost %3.3%1.7%
Transfer Tax4%None
Homeowners Insurance$1,300/yr$3,800/yr
First-Time Buyer Program
DSHA Homeownership Loan
Up to 5% Preferred Plus
TDHCA My First Texas Home
Up to 5% DPA grant
Verdict

Texas wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $310K and lower overall costs, Texas offers meaningful savings compared to Delaware. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Delaware
Home Price$355,000
Down Payment (10%)$35,500
Loan Amount$319,500
Monthly P&I$2,019
Monthly Property Tax$166
Monthly Insurance$108
Monthly PMI$133
Total PITI$2,427/mo
Annual property tax: $1,988
Texas
Home Price$310,000
Down Payment (10%)$31,000
Loan Amount$279,000
Monthly P&I$1,763
Monthly Property Tax$465
Monthly Insurance$317
Monthly PMI$116
Total PITI$2,661/mo
Annual property tax: $5,580

Buying in Delaware saves you approximately $234/month ($2,808/year) compared to Texas, based on median home prices with identical loan terms.

Which State Is Right for You?

Home prices in Delaware and Texas are relatively close, with only a 13% difference ($45K). At similar price points, your decision should focus on the other cost factors: property taxes, insurance, closing costs, and the overall quality of life each state offers. Small percentage differences in tax rates compound over decades of homeownership.

Property taxes are dramatically different: Delaware charges 0.56% while Texas charges 1.8%, a gap of 1.24 percentage points. On the respective median homes, this means Texas homeowners pay roughly $5,580 per year in property taxes versus $1,988 in Delaware. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.

Homeowners insurance is significantly cheaper in Delaware ($1,300/year) compared to Texas ($3,800/year). That's an extra $2,500 per year — or $208/month — eating into your budget in Texas. Texas's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.

Closing costs are a one-time but significant expense. Delaware averages $12K in closing costs (3.3% of purchase price) while Texas averages $5K (1.7%). Much of Delaware's higher costs come from its 4% transfer tax, which adds $14K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.

Both states offer down payment assistance for first-time buyers. Delaware's DSHA Homeownership Loan provides Up to 5% Preferred Plus, while Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: property taxes are the defining difference here. Texas's 1.8% rate versus Delaware's 0.56% means Delaware homeowners save approximately $3,592 every year on taxes alone. Over a 30-year mortgage, that difference compounds into tens of thousands of dollars — making it the most important cost factor in this comparison.

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