Current mortgage interest rates in Texas

As of Tuesday, December 5, 2023, current interest rates in Texas are 7.53% for a 30-year fixed mortgage and 6.73% for a 15-year fixed mortgage.

Today’s higher mortgage rate environment continues to make housing affordability a challenge for Texas homebuyers, and refinances far less desirable for homeowners. While mortgage rates are difficult to predict, many economists expect them to remain well above their historical lows for the foreseeable future.

Refinance rates in Texas

While interest rates are no longer at historic lows, you might still be exploring a cash-out refinance to pay for renovations or another large expense. You can use Bankrate’s mortgage refinance calculator to run the numbers.

Texas mortgage rate trends

As of September 2023, mortgage rates nationally and in Texas were at their highest levels since 2000, according to Bankrate’s national survey of lenders.

National mortgage rates by loan type

Mortgage statistics for Texas

Texas is home to a diverse economy. Houston and Dallas are two of the nation’s largest metro areas, and Austin is a burgeoning tech hub. Here are some statistics about mortgages and the housing market in The Lone Star State:

• Average home value (as of Sept. 2023): $302,281 (Zillow)
• Homeownership rate (as of Dec. 2022): 63.6% (U.S. Census Bureau)
• Average mortgage loan size in 2022: $341,090 (Home Mortgage Disclosure Act)

Mortgage options in Texas

If you’re looking to get a mortgage in Texas, you have several options, depending on what you qualify for:

• Texas conventional mortgages: To qualify for a conventional mortgage, you’ll generally 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 get 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 guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent to start.

First-time homebuyer programs in Texas

If you’re looking to purchase your first home in The Lone Star State, you could be eligible for one or more 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.
• Mortgage credit certificate (MCC): 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.

Additional Texas mortgage resources

• Texas loan limits by county: Learn the conforming loan limit for your city or town.
• Search for Texas mortgage lenders: Explore mortgage lenders in your state.
• Best mortgage lenders in Texas: Find out Bankrate’s top picks.

How to find the best mortgage rate in Texas for you

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Learn more about how to get a mortgage.