Texas Mortgage and Refinance Rates
As of Saturday, September 18, 2021, current rates in Texas are 3.01% for a 30-year fixed, 2.27% for a 15-year fixed, and 2.81% for a 5/1 adjustable-rate mortgage (ARM).
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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.
Better.com - Best online lender
Better.com is an online-only lender that offers mortgages in 46 states along with Washington, D.C.
Strengths: Better.com offers fast mortgage preapprovals — three minutes — and 21-day closings, on average, as well as the Better Price Guarantee of $100 if it can't match a competitor's offer.
Weaknesses: Better.com offers conventional and FHA loans, not government-insured VA or USDA loans, and the Better Price Guarantee is only available via the lender's website.
Read Bankrate's Better.com mortgage review
Interfirst Mortgage Company – Best overall lender
Interfirst Mortgage Company offers the standard slate of mortgage products, including rate-and-term and cash-out refinancing.
Strengths: Interfirst Mortgage Company doesn’t charge an application fee or other type of lender fee.
Weaknesses: Interfirst Mortgage Company operates in many states, but not all, and doesn’t offer FHA, VA or USDA loans. The lender also requires a relatively higher credit score and isn’t as flexible in underwriting.
Read Bankrate's Interfirst Mortgage Company review
Lower – Best for refinancing
Lower offers a range of mortgage options, and for refinancing, provides borrowers the choice to do a traditional rate-and-term refi, a cash-out refi to draw from equity or a streamline refinance on government-backed loans.
Strengths: Lower doesn’t charge lender fees on refinances for current customers.
Weaknesses: Lower’s mortgages are not available in every state, and the lender imposes fees for new borrowers.
Read Bankrate's Lower mortgage review
Fairway Independent Mortgage Corporation – Best for first-time homebuyers
Fairway Independent Mortgage Corporation offers mortgages in all states and has over 700 branch and satellite locations.
Strengths: Fairway Independent Mortgage Corporation’s built-out educational resources can be valuable for borrowers, and the lender offers a convenient app with the ability to submit loan documents electronically.
Weaknesses: Fairway Independent Mortgage Corporation doesn’t post mortgage rates on its website or offer home equity lines of credit (HELOCs).
Read Bankrate's Fairway Independent Mortgage Corporation review
First Mortgage Direct – Best no-fee lender
First Mortgage Direct offers loans for purchases, first-time homebuyers and refinancing.
Strengths: First Mortgage Direct doesn’t charge any origination or hidden fees.
Weaknesses: First Mortgage Direct provides mortgages in only some states, and doesn’t advertise its rates online.
Read Bankrate's First Mortgage Direct review
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.