Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Maryland and Texas. Updated for 2026.
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 Maryland. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Texas saves you approximately $409/month ($4,908/year) compared to Maryland, based on median home prices with identical loan terms.
Texas offers meaningfully lower home prices than Maryland, with median prices running 26% less ($110K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Maryland may find Texas far more accessible, particularly when combined with local down payment assistance programs.
Maryland has a moderate property tax advantage at 1.09% versus Texas's 1.8%. While the rate gap of 0.71% may seem small, it translates to an annual difference of approximately $1,002 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $8K in savings.
Homeowners insurance is significantly cheaper in Maryland ($1,700/year) compared to Texas ($3,800/year). That's an extra $2,100 per year — or $175/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. Maryland averages $11K in closing costs (2.5% of purchase price) while Texas averages $5K (1.7%). Much of Maryland's higher costs come from its 1.5% transfer tax, which adds $6K 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. Maryland's MD Mortgage Program provides Up to $25,000 DPA, 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.
The bottom line: insurance costs heavily tilt the scales. Texas homeowners pay $3,800/year for coverage versus $1,700 in Maryland — a $2,100 annual gap. If you're budgeting for a home in Texas, make sure to factor in this ongoing expense. It can make an otherwise affordable market surprisingly costly month-to-month.