Mortgage and Refinance Rates in Texas

Use our comparison table to compare refinance and mortgage rates in Texas

Today's Rates In Texas

January 27 2021
Fixed 30 Year
down since yesterday
Rate: 2.602%
APR: 2.649%

January 27 2021
Fixed 15 Year
down since yesterday
Rate: 2.15%
APR: 2.221%

January 27 2021
Fixed 10 Year
up since yesterday
Rate: 2.438%
APR: 2.548%

Whether you're from Big D, Houston, or Austin, finding the best mortgage rates in Texas can be difficult if you don't know a little bit about how the different types of mortgage loans work. For example, you may or may not know that:

  • The annual percentage rate (APR) is a better guide to the cost of a home loan in Texas than just the mortgage rate. The APR includes the upfront costs of the loan, while the stated rate does not. The APR also takes into account discount points, which are fees paid to buy a lower rate, and helps you compare mortgages that have different closing costs.
  • A mortgage with a low monthly payment may not be the best deal.  Sometimes, it may be better to pay more each month to pay your mortgage off faster. If you can afford it, 15-year mortgage rates in Texas are significantly lower than 30-year rates, and the fact you pay them off twice as fast means you can save huge amounts of interest.
  • Texas mortgage rates aren't the same for all borrowers. Your credit score and down payment affect what your mortgage rate will be.
  • It's challenging to research and understand your mortgage loan and refinance options in Texas. That's why offers you the tools to walk you through the process, including: advertised lender rates, mortgage calculators, and a Texas broker directory.

Current mortgage rates in Texas are shown at the top of this page. That's a good place to get started.


Comparing Texas home loans

Whether you're buying a cabin in the Hill Country, or refinancing an urban loft in Houston, your first step is to get familiar with how rates for different types of home loans compare. You might see that Texas ARMs start with a lower rate than fixed-rate- mortgages (FRMs), that FHA loans offer better rates to Texas borrowers with lower credit scores than conventional mortgages do, or that second mortgages (home equity loans) have higher rates than first mortgages or mortgage refinances.

Are you ready to compare the rates and crunch the numbers? Use our mortgage calculators to test different mortgage rates, amounts, and loan types. Don't forget to consider how long you plan to own the home, and any plans you might have to remodel or consolidate debt. If you're going to sell within a few years, an ARM with low initial payments might be the right choice.

Once you understand how different loans work, and how much you can afford, use the form at the top of this page to get personalized, no-obligation quotes from Texas mortgage lenders.  Regardless if you're buying a home, looking to refinance or seeking a home equity loan, you'll get offers tailored to you from lenders who want your business.

Conventional mortgages

A conventional or conforming mortgage refers to loans backed by Fannie Mae or Freddie Mac, which account for most residential mortgages in the country.  Fannie and Freddie don't offer mortgages themselves, but insure loans that meet certain standards, allowing lenders to offer more favorable terms on these loans than they otherwise could.

Conventional mortgages offer very good terms and mortgage rates for Texas borrowers with good to excellent credit. Down payments can be as little as 3 percent, but better rates are available for those who put down more.  Borrowers who put down less than 20 percent must pay an additional monthly fee for private mortgage insurance, though that can be canceled once you reach 20 percent equity.


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Texas FHA loans

FHA loans are a popular option for first-time homebuyers or anyone with weaker credit or limited finances.  Texas FHA loan requirements have fairly lenient credit standards, with lenders commonly approving loans for borrowers with credit scores of 600 or below, and down payments can be as little as 3.5 percent. FHA rates in Texas also are not tied to credit scores in the way conventional loans are, so borrowers with weaker scores can often get better rates.

FHA loans require an upfront mortgage insurance premium of 1.75 percent of the loan amount, which can be rolled into the loan itself.  Borrowers putting down less than 20 percent must also pay an annual mortgage insurance premium, billed monthly, which varies depending on the down payment, length of the loan and loan amount.  Unlike conventional loans, the premium must be carried for the life of the loan for borrowers who make a down payment of less than 10 percent, though it can be eliminated by refinancing the loan when you reach 20 percent equity.


Jumbo loans

Texas has a lot of homes with Texas-sized price tags. Unfortunately, a standard-type mortgage often can't cover the cost of these homes. The most you can borrow with a conventional or FHA loan in Texas is $453,100 for a single-family home (2018 limit), with higher limits available for multi-unit dwellings.

For a mortgage larger than that, you need a jumbo loan, defined as one that exceeds Fannie Mae, Freddie Mac or FHA limits. Jumbo mortgage rates in Texas and elsewhere tend to run a bit higher than those for conventional loans. Down payment and credit requirements are higher as well – 20 percent down is a common requirement, though some lenders will allow 10 percent or less for well-qualified borrowers.  Lenders usually want  to see a credit score of 680 or more to approve a Texas jumbo loan, though here again lower scores may be accepted for borrowers who can demonstrate strong finances.


VA loans

For those who have served in the military, a VA home loan in Texas is one of the best deals around. Mortgage rates are very competitive and you can borrow up to the jumbo loan limit ($453,100) with no down payment.  Higher loan amounts are available by making a down payment equal to 25 percent of the amount over the limit.

Texas VA loans are available to both veterans and current members of the military who've met certain service minimums, as well as to certain others, such as members of the National Guard or Reserve with six years of service (less for those who served in combat), and widows/widowers of those who died in line of duty.


Home Equity Loans

Home equity loans come in two types: standard home equity loans, where you borrow a certain sum of money and immediately begin repaying it, and a home equity line of credit (HELOC), where you are given a line of credit you can borrow against as needed and generally do not have to begin repaying the borrowed funds immediately.

Home equity loan rates in Texas are somewhat higher than those on mortgages used to purchase or refinance a home, but are still considerably lower than those on unsecured loans, including most credit cards. That's because they're secured by using part of the value of your home as collateral.

Standard home  equity loans are typically used to raise cash for one-time expenses, whereas HELOCs are useful for ongoing expenses or cash-flow management purposes, borrowing and repaying funds as circumstances require or allow.  Standard home equity loans usually have fixed-rates, while HELOCs are always adjustable-rate loans during the draw, the period when you can borrow against your line of credit and before you must begin repaying loan principle.


There are many types of adjustable-rate mortgages (ARMs) available in Texas. These mortgage loans start with a low, fixed interest rate that remains in force for a specified time period, usually one, three, or five years. When that specified time period expires, the rate becomes variable, and is adjusted at regular intervals. ARMs are appropriate for borrowers who need the lowest possible payment now, but expect to have the ability to afford a larger payment later.


Additional Local Rates Pages

See San Antonio Mortgage Rates and Austin Mortgage Rates.