Interest Rate
Average home price

If you’re planning on buying a home in Texas, you’ll want to go for the best mortgage rate possible. Your mortgage rate will depend on a few different factors, including your level of income, your credit score, your debt-to-income ratio, and how much down payment you can offer.

Some ways to improve your mortgage rate in Texas are to make sure all of your documentation is in order, check your credit before you apply for a home loan, and get preapproved by a reputable mortgage lender.

Here’s a quick look at current Texas mortgage rates:

Loan Program Mortgage Rate APR* 1 Day Change
Conventional 30 year fixed 6.397% 6.47% +0.04%
Conventional 20 year fixed 5.983% 6.074% -0.22%
Conventional 15 year fixed 5.653% 5.776% -0.04%
Conventional 10 year fixed 5.635% 5.832% Unchanged
Conventional 7 year ARM 6.406% 7.309% Unchanged
Conventional 5 year ARM 6.483% 7.558% +0.07%
VA 30 year fixed 5.767% 5.941% +0.08%
VA 15 year fixed 5.362% 5.661% +0.1%
VA 5 year ARM 6.125% 6.795% +0.13%

Data source: ©Zillow, Inc. Use is subject to the Terms of Use

Buying a Home in Texas

Pondering the possibility of buying a home in Texas? This could bethe year you decide “bigger is better” and mosey on down to the Lone Star State. Here’s what you need to know:

Everything is bigger in Texas, and that includes the population, which just tipped over the 26 million mark. The residents of the great state tend to cluster; one in every four or five lives in the state’s biggest and best cities:

  • Houston
  • San Antonio
  • Dallas
  • Austin (state capital)
  • Fort Worth

Next, find out how much home you can afford. Texas ranks 21st in US homes for sale at average price, and 4th for homes over $1,000,000. Getting preapproved can help you know what your budget is before you go house hunting.

First-time Homebuyers

If you are a first-time home buyer, you may be able to qualify for assistance through a program administered by the Texas Department of Housing and Community Affairs (TDHCA).

My First Texas Home offers 30-year, fixed-interest rate mortgages with down payment and closing cost assistance of up to 5% of the mortgage amount. This is provided as a no-interest, no-monthly-payment second lien that doesn’t need to be repaid until the home is sold, refinanced or paid off. My First Texas Home loans qualify for the Texas Mortgage Credit Certificate program to reduce your federal taxes.

In order to be eligible for this program, first-time home buyers have to:

  • Have a credit score of at least 620
  • Meet certain income and purchase price parameters
  • Complete a home buyer education course

Refinancing in Texas

If you need to refinance a home in Texas to take advantage of favorable Texas mortgage rates, you can do any of the following:

  • Refinance to access a better interest rate
  • Refinance to change your loan term
  • Refinance to get your hands on some equity-derived cash
  • Refinance without a mandated private mortgage insurance (PMI) payment

You may think about a streamlined refinance if you qualify by having a certain type of loan. Ask your lender for more information.


Buying a Home?

Each step-by-step guide is designed to shepherd you through a process from start to finish. Know what to expect and how to proceed, no matter where you are in your home buying journey.

1 The First Step in Buying a Home – Preapproval

What Is a Mortgage Preapproval? | How Much Will My Monthly Payment Be? | How Much Will My Down Payment Be? | How Long Does a Mortgage Preapproval Last? | What Is the Difference Between a Standard Preapproval and an Underwritten Preapproval?

Read More

3 How much money do I need?

How Can I Lower My Mortgage Payment? | How Can I Lower My Closing Costs? | When Do I Pay Out-Of-Pocket Costs? | What are Prepaid Items or Escrows? | What Will My Closing Costs Be?

Read More

4 The Basics of Mortgage

What Documents Need to be Updated During the Home Loan Process? | What Contingencies Do I Need? | How Important is the Closing Date? | Steps in the Loan Process | Understanding Common Mortgage Terms

Read More

5 Finding a Real Estate Agent

What Are the Top 6 Questions to Ask a Real Estate Agent? | Should I Use the Seller's Real Estate Agent? | Are Online Discount Realty Services a Good Idea? | How Much Does a Buyer's Real Estate Agent Cost? | Why Do I Need a Real Estate Agent to Buy a Home?

Read More
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