Today's Mortgage Rates in Texas

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What Affects Mortgage Rates in Texas

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The rates on this page are a starting point, but your mortgage interest rate in Texas will reflect both market conditions and your personal situation. It's also worth noting that the interest rate and APR aren't the same. The interest rate affects your monthly principal and interest payment, while the APR includes certain fees.

Other factors also affect your rate:

Federal Reserve policy and inflation: The Fed doesn't directly set mortgage rates, but its policies and guidance have an effect on your rate. Rates generally rise when inflation is high, or the Fed says it plans to keep borrowing costs tight. When inflation slows, the Fed is generally less aggressive, and rates can fall.
The broader economy: The housing market, unemployment, wage growth, and other economic factors also play a role in shaping mortgage rates by influencing investor expectations and lender pricing.
Your situation: Your personal financial situation and credit history also have a major impact on your rate. Your credit score, debt-to-income ratio, down payment size, occupancy, loan type, and other details about your loan process all play a role in shaping your rate.

You can connect with an experienced loan officer to get a personalized mortgage rate based on your circumstances.

Types of Mortgages Available in Texas

Whether you’re buying a home in a major metro like Dallas–Fort Worth or in a rural Texas community, you'll have access to a wide range of loan options to fit your needs.

Some common mortgage options in Texas include:

Conventional Fixed-Rate Mortgages: These have the same interest rate for the entire loan term, commonly 15 or 30 years. That means your principal and interest payments will be predictable. Conventional mortgages are generally underwritten to Fannie Mae and Freddie Mac standards based on credit score and debt-to-income ratios. That often means a down payment of at least 5%, although it can be as low as 3% for qualifying borrowers, including many first-time homebuyers. Private mortgage insurance (PMI) is typically required if your down payment is less than 20%, but it can generally be canceled once you pay down your loan and gain enough equity.
Adjustable-Rate Mortgages (ARMs): Adjustable-rate mortgages feature a fixed interest rate for an initial period, followed by periodic adjustments based on a benchmark index and lender-set margin. A 7/1 ARM, for instance, features a fixed rate for seven years, followed by annual adjustments. That means your payments can change after the introductory period, although ARMs generally have rate caps that limit how much they can change. Like fixed-rate conventional loans, PMI might be required if your down payment is less than 20% and can be canceled once you reach sufficient equity.
FHA Loans: FHA loans generally have more flexible down payment and credit score requirements than conventional loans, but a mortgage insurance premium (MIP) is required regardless of your down payment size. MIP includes both an upfront premium and ongoing monthly payments. If your down payment is less than 10%, MIP typically lasts for the life of the loan unless you refinance into a conventional mortgage. If you make a down payment of 10% or more, MIP generally lasts 11 years.
VA Loans: These loans generally don't require down payments or private mortgage insurance, but are only available to eligible veterans, active-duty service members, and surviving spouses. These loans generally require a VA funding fee, which can be financed, although qualifying veterans can have the fee waived.
Jumbo Loans: These are mortgages that are higher than conforming loan limits. Most Texas counties use a baseline conforming loan limit set by the FHFA. Jumbo loans typically require stricter underwriting, and rates may be higher or lower than conforming loans depending on market conditions and borrower qualifications.

Refinancing a Mortgage in Texas

Refinancing can help you lower your rate or pay off your loan faster. One common type of refinance is a rate-and-term refinance, which replaces an existing mortgage with a new loan. That can help you take advantage of lower interest rates, or change your loan terms to pay off your mortgage faster.

Cash-out refinances, which replace your loan with a new, larger mortgage and let you take your equity as cash, are another common type of refinance.

Texas places strict requirements on cash-out refinances under Article XVI, Section 50(a)(6) of the state constitution. Because of Texas' cash-out refinance requirements, you'll sometimes hear Texas cash-out refinances referred to as "Texas A6 refinances."

Here's a quick rundown of Texas' requirements for cash-out refinances:

Cash-out refinances in Texas are capped at 80% loan to value, meaning you'll need to keep at least 20% of your home's equity.
Only one A6 loan can be in place on a property at any given time. Other loans, including home equity loans, need to be paid off at closing.
Texas also imposes waiting periods on cash-out refinances. You'll need to wait 12 months between cash-out refinances. Many lenders also require you to own a home for at least 6 months before your first cash-out refinance.
Closings are required at a designated physical location, and that often means an in-person closing is required.
There are limits on property size: Urban homesteads can't be more than 10 acres, and agricultural homesteads can't be more than 100 acres for a single adult or 200 acres for a family.
Lender fees are capped at 2% of the loan amount, although certain third-party fees are treated separately.

Are there homebuyer assistance programs in Texas?

The Texas State Affordable Housing Corporation (TSAHC) offers assistance for both qualifying first-time and repeat homebuyers.

That includes the Home Sweet Texas program, which features down payment assistance in the form of grants or deferred forgivable loans.

Individual cities in Texas also have their own programs, like the Dallas Homebuyer Assistance Program (DHAP), which features down payment assistance to qualifying homebuyers.

Does credit score affect mortgage rates?

Your credit score has a major impact on your mortgage rates, with higher credit scores generally meaning lower interest rates.

Your credit score isn't the only thing that affects your mortgage rate, however. Your down payment, debt-to-income ratio, loan term, and other factors will also affect your rate.

Larger factors, like inflation and the broader economy, also have a major impact on your mortgage rate.

What's the 2% rule in Texas?

Texas caps lender-controlled fees on home equity loans and cash-out refinances at 2% of the loan's principal amount, although the law provides for certain exceptions. Those include third-party appraisals, land surveys, title insurance premiums, and title examination fees (but only to the extent those examination fees do not exceed the lender’s base title insurance premium) as well as discount points. Whether a specific fee counts toward the 2% cap depends on how it is classified and charged. Lenders are responsible for ensuring compliance with applicable Texas regulations.

How will property taxes and insurance in Texas
affect my mortgage payment?

Property taxes are often included in your mortgage payment as part of an escrow account. If that's the case, it means your lender will collect property tax payments each month and pay the tax bill for you. Some loan types, like FHA and VA loans, sometimes require escrow accounts.

Texas is in general on the higher end of nationwide property tax rates, according to the Tax Foundation.

Keep in mind property taxes can vary significantly within a state, with urban areas generally higher than those in rural areas.

Homeowners insurance can also affect your mortgage payment if it's bundled into your mortgage payment with an escrow account. Your home's location, and whether it's in an area that is affected by natural disasters like floods, plays a major role in your insurance cost. Details about your home, like its size, age, and condition can also affect your payment. Texas has one of the most expensive average annual home insurance price tags, according to the U.S. Census Bureau.

Loan Officers in Texas

Paty Cabrales

Branch Manager, VP

NMLS ID# 226462

Today's Mortgage Rates in Texas

Current Texas Mortgage and Refinance Rates

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Get your personalized rate online

What Affects Mortgage Rates in Texas

Tell The Reader More

Refinancing a Mortgage in Texas

Texas Mortgage FAQs

Loan Officers in Texas

Paty Cabrales

Murdock Richard

Lindsey Kneupper

Michele Lee

Michael Litwin

Michael Swopes

Deanna Adams

Beatriz Moreno

Curtis Huizar

Jasmine Cavazos

Sarah Gonzalez

Al Hewitt

Carla Zammiello