The Real Monthly Cost

The short answer

The 30-year fixed mortgage rate averaged 7.40% this week, according to Freddie Mac. That is up from 7.28% a week earlier and 6.30% a year ago, and it is the highest weekly reading since mid-November 2023. On a $450,000 home with 10% down, that gap is roughly $297 a month in principal and interest alone.

But the rate is only one line of your payment. In North Dallas, your property taxes, any MUD or PID charge, and your insurance deductible can change your real monthly cost in ways a rate quote never shows. The smartest move right now is to compare full monthly payments, not just rates, and this guide walks through the math and the line items that are easy to miss.

What 7.4% does to your monthly payment

Here is principal and interest only, on a 30-year fixed loan with 10% down, comparing today's 7.40% with last year's 6.30%.

• $400,000 home (loan of $360,000): $2,493 a month at 7.40% versus $2,228 at 6.30%, a difference of $265 a month.
• $450,000 home (loan of $405,000): $2,804 a month at 7.40% versus $2,507 at 6.30%, a difference of $297 a month.
• $500,000 home (loan of $450,000): $3,116 a month at 7.40% versus $2,785 at 6.30%, a difference of $331 a month.

On a $450,000 home, that is roughly $3,500 more per year for the same house. These figures leave out property taxes, insurance, mortgage insurance, HOA dues, and MUD or PID charges, so your real payment will be higher. Rates also change weekly, and your rate depends on your credit, your down payment, and your loan type.

Property taxes, MUDs, and PIDs

Texas has no state personal income tax, but property taxes fund local services, and they land in your monthly payment. Your bill depends on the exact address, and it can include:

• City and county taxes
• School district taxes
• A MUD (Municipal Utility District), a special district that typically funds water, wastewater, and drainage and is generally repaid through a property tax and sometimes utility charges
• A PID (Public Improvement District), which charges assessments to fund improvements like parks, landscaping, sidewalks, and decorative lighting
• Homestead exemption eligibility

MUD and PID charges can appear as separate lines on the tax bill or as a separate invoice, so ask your lender whether they are included in your escrow. Two homes at the same price can have very different tax bills, which is why I always ask for the last two years of tax bills for the exact address before an offer goes in.

Insurance and storm deductibles

North Texas buyers should price insurance before falling in love with a house. Premiums have climbed in recent years, and the deductible matters as much as the premium.

Storm deductibles are often a percentage of your home's insured value instead of a flat dollar amount, and the percentage is applied to the insured value, not the size of the claim. For example, a 2% deductible on a home insured for $400,000 is $8,000 before the insurer pays. Ask for quotes with the exact wind and hail deductible spelled out, and do it while you are still in your option period. That is the cheapest time to learn it.

Five moves to make before you pause your search

1. Get multiple lender quotes. Freddie Mac's own chief economist advises borrowers to get multiple quotes, because the difference over the life of a loan can be significant. Compare the Loan Estimates side by side, not just the headline rate.
2. Ask about rate buydowns. A temporary buydown lowers your rate for the first part of the loan. A permanent buydown uses discount points, where one point equals 1% of the loan amount. Who pays for what is negotiable, so ask early.
3. Budget the whole payment. Add estimated taxes for the specific address, insurance, HOA, and any MUD or PID. If a number is missing, ask for it before your option period ends.
4. Test your comfort number. Run your budget at today's rate, not at the rate you hope for.
5. Know your timeline. If you have a relocation date, plan around it. If you do not, you have more room to compare.

A note on builder incentives

Builders often advertise lender incentives, such as rate buydowns or closing cost help, but whether it is the better deal depends on the numbers. One competing quote settles it either way. If you are touring model homes, read my guide to buying new construction before your first visit.

Where the Dallas market stands

According to Redfin, the median sale price in the city of Dallas was $449,736 in September 2026, up 3.4% from a year earlier. Homes took a median of 53 days to sell, compared with 55 last year, and 2,421 homes sold, down 6.4% from last year.

That is the city of Dallas as a whole. Frisco, Prosper, McKinney, Celina, and Plano each have their own numbers, so ask me for the figures that match the areas you are considering.

So which move is right for you

• If you are relocating on a deadline: focus on the total monthly payment, not on timing the market. Get quotes from more than one lender, ask about buydowns, and use your option period to check taxes and insurance for the exact address.
• If your timeline is flexible: nobody can predict where rates go next, and a future refinance is possible but never guaranteed. A good rule is to commit only to a payment you are comfortable carrying at today's rate, and use the extra time to compare areas.

Still deciding where to land? Read my Prosper vs. Celina guide for a side-by-side look at two of the fastest-growing towns in Collin County.

One more tax item: the homestead exemption

The homestead exemption is not automatic. You have to apply with your county appraisal district, and the general deadline is before May 1. It is easy to miss. If you do miss it, late applications may still be accepted, so check with your appraisal district. If you are closing in the fall, put a reminder in your calendar now.