The sticker price of a home is only part of the total cost of ownership. In North Texas, where property taxes and HOA fees can be significant, understanding the full financial picture before you buy helps you avoid surprises and budget accurately — whether you're purchasing new construction homes or a resale property in McKinney, Frisco, or Prosper.
Closing costs: 2–5% of the purchase price
Closing costs include lender fees, title insurance, escrow deposits, prepaid property taxes, and homeowner's insurance. On a $400,000 home, expect $8,000–$20,000 in closing costs. Some costs are negotiable, and builder incentives may cover a portion — but never assume they'll cover everything.
Texas property taxes
Texas has no state income tax, but property-tax rates vary by location and taxing jurisdiction. Property-tax rates in North DFW vary by location and taxing jurisdiction. Verify the current combined rate with the applicable county appraisal district, county tax office, and local taxing units. New communities may have additional MUD (Municipal Utility District) taxes.
HOA fees: $50–$300+ per month
Most new communities in North Texas have HOA fees that cover common area maintenance, amenities, and community management. These fees vary widely — from $50/month in simpler neighborhoods to $300+/month in master-planned communities with extensive amenities. Factor these into your monthly budget.
Homeowner's insurance costs
Texas homeowner's insurance premiums may vary based on location, coverage level, home age, claims history, and weather-related risk factors. Insurance costs vary based on home size, age, location, coverage level, claims history, and carrier. Buyers should obtain quotes from licensed insurance providers to estimate their specific costs. New-construction homes may have different insurance profiles based on construction year, building materials, and carrier underwriting criteria.
Maintenance and reserves
A common rule of thumb is to budget 1–2% of your home's value annually for maintenance — HVAC servicing, roof inspection, plumbing, landscaping, and general upkeep. A $400,000 home might need $4,000–$8,000 per year in maintenance reserves.
Key Takeaway
Understanding the total cost of homeownership — not just the monthly mortgage payment — helps you make confident, informed decisions. I help buyers in North DFW review estimated costs and financial considerations before they commit.
Market conditions, mortgage rates, pricing, incentives, inventory, tax information, school boundaries, development plans, and availability are subject to change. Verify current information with the appropriate official or professional source before making a real estate or financial decision.