The Short Answer
Texas has no state income tax and comparatively high property tax rates, so escrow for taxes and insurance is a large share of a San Antonio mortgage payment. Buyers who budget only principal and interest are routinely surprised at closing. The fix is running the payment with real county rates and an actual insurance quote before you make an offer.
Principal and interest is maybe two-thirds of the story
A VA loan carries no monthly mortgage insurance, which removes a line item that FHA and low-down conventional buyers carry. What remains is principal, interest, property taxes, and homeowners insurance. In Texas, those last two are heavy.
The state funds itself without an income tax, and property taxes carry more of that load. Layer in homeowners insurance priced for hail and wind exposure across South Central Texas, and your escrow portion can rival a meaningful share of the payment.
County lines matter more than people expect
The San Antonio metro spans several counties with different rates and different appraisal districts. Bexar covers the city, Stone Oak, Helotes, Converse, Live Oak, and Alamo Ranch. Comal covers New Braunfels, Bulverde, Spring Branch, and Canyon Lake. Guadalupe covers Schertz, Cibolo, and Seguin. Kendall covers Boerne.
Two homes at the same price in two counties can carry noticeably different monthly payments. Municipal utility districts and public improvement districts in newer subdivisions add their own assessments on top.
The homestead exemption timing trap
Your escrow at closing is typically set on the seller's tax situation, which may not include the exemptions you will qualify for. File your homestead exemption after closing. Texas also offers a property tax exemption for veterans with a VA disability rating, which at a 100% rating can eliminate the residence homestead tax entirely — a substantial change to the payment that first-year escrow often does not anticipate.
How to budget honestly
Get an insurance quote on the specific address before your option period ends, not a generic estimate. Ask for the payment breakdown with actual county rates rather than a rounded assumption. If a lender will not show you the full escrow math up front, that is worth noticing.
Written and reviewed by Jonathan Mullins, Founder & Chief Mortgage Officer at Valor Home Mortgage · NMLS #94015 · U.S. Army Veteran · 23+ years in mortgage lending.
Last updated .