Texas Mortgage and Refinance Rates
As of Tuesday, January 18, 2022, current rates in Texas are 3.56% for a 30-year fixed, 2.89% for a 15-year fixed, and 2.63% for a 5/1 adjustable-rate mortgage (ARM).
We’ll help you find Texas mortgage and refinance rates well below the national average so you can apply and start saving on your home today.
About our Mortgage Rate Tables: The above mortgage loan information is provided to, or obtained by, Bankrate. Some lenders provide their mortgage loan terms to Bankrate for advertising purposes and Bankrate receives compensation from those advertisers (our "Advertisers"). Other lenders' terms are gathered by Bankrate through its own research of available mortgage loan terms and that information is displayed in our rate table for applicable criteria. In the above table, an Advertiser listing can be identified and distinguished from other listings because it includes a "Next" button that can be used to click-through to the Advertiser's own website or a phone number for the Advertiser.
Availability of Advertised Terms: Each Advertiser is responsible for the accuracy and availability of its own advertised terms. Bankrate cannot guaranty the accuracy or availability of any loan term shown above. However, Bankrate attempts to verify the accuracy and availability of the advertised terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. Click here for rate criteria by loan product.
Loan Terms for Bankrate.com Customers: Advertisers may have different loan terms on their own website from those advertised through Bankrate.com. To receive the Bankrate.com rate, you must identify yourself to the Advertiser as a Bankrate.com customer. This will typically be done by phone so you should look for the Advertisers phone number when you click-through to their website. In addition, credit unions may require membership.
Loans Above $548,250 May Have Different Loan Terms: If you are seeking a loan for more than $548,250, lenders in certain locations may be able to provide terms that are different from those shown in the table above. You should confirm your terms with the lender for your requested loan amount.
Taxes and Insurance Excluded from Loan Terms: The loan terms (APR and Payment examples) shown above do not include amounts for taxes or insurance premiums. Your monthly payment amount will be greater if taxes and insurance premiums are included.
Consumer Satisfaction: If you have used Bankrate.com and have not received the advertised loan terms or otherwise been dissatisfied with your experience with any Advertiser, we want to hear from you. Please click here to provide your comments to Bankrate Quality Control.
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Texas mortgage overview
By Dhara Singh
Known for its warm weather and diverse population, Texas is the second-most populous state in the country. The Lone Star State is attracting new residents at a dizzying pace: Texas’ population has grown by more than 1,100 people a day for the past decade, according to the U.S. Census Bureau.
If you’re looking to get a mortgage in Texas, you have several options.
- Texas conventional mortgages: Conventional mortgages are considered the industry standard, and they impose qualification requirements. Generally, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio less than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI), as well.
- Texas FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to secure a loan insured by the Federal Housing Administration (FHA). A credit score of at least 580 can help you secure an FHA loan with a down payment of just 3.5 percent. You can still get an FHA loan with a credit score of 500, but that requires a 10 percent down payment. With an FHA loan, you’ll typically need a DTI between 31 percent to 41 percent. FHA loans generally have lower interest rates than conventional loans.
- Texas VA loans: If you’re a veteran or active duty member of the military, you may qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or private mortgage insurance (PMI), but you do need to pay a funding fee, which typically ranges from 2.3 percent to 3.6 percent of the purchase price.
Top 5 Bankrate mortgage lenders in Texas
- Better.com – Best online lender
- Interfirst Mortgage Company – Best overall lender
- Lower – Best for refinancing
- Fairway Independent Mortgage Corporation – Best for first-time homebuyers
- First Mortgage Direct – Best no-fee lender
Bankrate helps thousands of borrowers find mortgage and refinance lenders every day. To determine the top mortgage lenders, we analyzed proprietary data across more than 150 lenders to assess which on our platform received the most inquiries within a three-month period. We then assigned superlatives based on factors such as fees, products offered, convenience and other criteria. These top lenders are updated regularly.
First-time homebuyer programs in Texas
If you’re looking to purchase your first home in the Lone Star State, you have access to several first-time homebuyer programs. Most help buyers who haven’t owned a home in the past three years. Learn more about Texas first-time homebuyer programs.
- My First Texas Home: Managed by the Texas Department of Housing and Community Affairs (TDHCA), the My First Texas Home program offers mortgages designed with smaller monthly payments. The program also provides small loans to help homebuyers cover down payments and closing costs. These can be worth up to 5 percent of your mortgage. You can find a participating lender online.
- Homes Sweet Texas Home Loan Program: You don’t need to be a first-time homebuyer to take advantage of the Homes Sweet Texas Home Loan program, which offers 30-year fixed-rate mortgages and down-payment assistance grants worth up to 5 percent of the loan amount. You don’t need to pay the grants back, but you do need to meet certain income limits, which vary by county. You can find a participating lender online.
- Homes for Texas Heroes Home Loan Program: The Homes for Texas Heroes Home Loan Program is open to police officers, veterans, teachers, corrections officers and emergency medical services personnel. The benefits are the same as those in the Homes Sweet Texas Home Loan Program.
- TSAHC Mortgage Credit Certificates: Mortgage credit certificates offered by the Texas State Affordable Housing Corporation (TSAHC) let you take tax credits based on how much you pay in interest on your mortgage each year. You can calculate your savings here.
Texas mortgage refinancing
With interest rates at historic lows, you might be able to lower your monthly payment and save thousands by refinancing your loan to a lower rate. You can use Bankrate’s mortgage refinance calculator to see how much you can save.