Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Montana and Texas. Updated for 2026.
Montana wins 3 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Texas has a lower total cost when combining home price, closing costs, and insurance. 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 $387/month ($4,644/year) compared to Montana, based on median home prices with identical loan terms.
Texas offers meaningfully lower home prices than Montana, with median prices running 28% less ($120K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Montana may find Texas far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Montana charges 0.74% while Texas charges 1.8%, a gap of 1.06 percentage points. On the respective median homes, this means Texas homeowners pay roughly $5,580 per year in property taxes versus $3,182 in Montana. 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 Montana ($2,100/year) compared to Texas ($3,800/year). That's an extra $1,700 per year — or $142/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.
Both states offer down payment assistance for first-time buyers. Montana's MBOH Regular Bond Program provides Up to $15,000 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: property taxes are the defining difference here. Texas's 1.8% rate versus Montana's 0.74% means Montana homeowners save approximately $2,398 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.