Current Texas Mortgage and Refinance Rates

Mortgage interest rates currently average 6.18% for 30-year fixed loans and 5.21% for 15-year fixed loans. Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

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Refinance rates in Texas

30-year FIXED

Current refinance rates are averaging:

6.58%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

15-year FIXED

Current refinance rates are averaging:

5.99%

Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.

There are many home refinance options, and each comes with slightly different features and rates.

  • Rate-and-term refinances give you an opportunity to change your interest rate or loan term (or even both). If you’re looking for a low monthly mortgage payment, you should consider lengthening your loan term or lowering your interest rate. On the other hand, if you want to save money in the long run, you can shorten your loan term.
    • Refinance rates may be slightly lower than purchase mortgage rates.
  • Cash-out refinances are a refinance transaction in which you also tap your home equity, allowing you to access a lump sum of cash.
    • Cash-out refinances come with higher rates than regular refinances.
  • Conventional refinances aren’t a part of a government loan program.
  • FHA refinances are insured by the Federal Housing Administration (FHA) and are usually easier to qualify for than conventional loans.
    • FHA loan rates are almost always lower than conventional refinance rates. At current Texas mortgage rates, it’s not unreasonable to see nearly a full percentage point difference.
  • VA refinances offer qualified military borrowers great loan terms with very flexible requirements. These loans, which are backed by the U.S. Department of Veterans Affairs (VA), are designed with the needs of military families in mind.
    • VA refinance rates tend to come in below conventional and FHA refinance rates. In today’s rates environment, that looks like about a 0.14 percentage point difference between an average VA interest rate and an average FHA loan rate. If you compare with conventional loan rates, the difference is even larger, at 0.71 percentage points.

See whether refinancing makes sense for you using our mortgage refinance calculator.

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What is the current mortgage rates forecast?

The current mortgage rates forecast is for rates to remain relatively high,  between 6% and 7%, despite three rate cuts from the Federal Reserve in late 2024.

Dropping rates alone can’t solve the current home affordability crisis, but they would help. Lower rates could also be an opportunity for the housing market to bounce back.

How do I get the best mortgage rate for my Texas home loan?

If you’re on the hunt for the best mortgage rates in Texas, the first thing you need to do is separate the factors determining mortgage rates into two groups: the ones you can control and the ones you can’t. Once you know which factors to target, you can take action.

Here are a few tips to get you started on the path to securing the lowest rates:

  • Boost your credit
    Although credit scores are built over the long term, there are some actions you can take today that will raise your credit score relatively quickly. Every little bit helps, because the lower your score, the more you’ll have to pay when it comes to mortgage rates.
  • Lower your debt-to-income (DTI) ratio
    Your DTI ratio is a number that compares your debt load to your income. Lenders use it to evaluate how much you can afford to borrow, as well as what sort of interest rates you should pay. If you can lower your DTI — for example, by increasing your income, paying off some debts or getting a cosigner — you could save thousands in interest charges over the long haul.
  • Buy a single-family, site-built home
    Lenders view a traditional, single-family home as the least risky investment. Because of that, if you’re buying a manufactured home, a property with more than one unit, a vacation home or an investment property, you will pay a higher interest rate.
  • Pay mortgage points
    Mortgage points are an option for buyers who can afford to pay a portion of their interest upfront. In doing so, you can “buy down” (that is, lower) your interest rate by up to 0.25 percentage points per mortgage point.
  • Compare offers from multiple lenders
    Savvy homebuyers will put “comparison shop” on their mortgage to-do list, because it’s simply a tried-and-true way to save. And we’re not just talking loose change here — you can save tens of thousands of dollars over the life of your home loan, according to LendingTree data.

Read more about our picks for the best mortgage lenders.

When should I lock in my mortgage rate?

If you have a loan offer in hand that you feel good about, it’s time to start thinking about a mortgage rate lock. Lenders will “lock in” your rate if you request it, which ensures that you won’t see any changes to your rate as you move toward closing. The rate you lock in is a rate you can count on, even if rates suddenly shoot up.

Texas home loan programs

Home Sweet Texas

The Home Sweet Texas program is run by the nonprofit Texas State Affordable Housing Corporation (TSAHC), offering both fixed-rate mortgages and down payment assistance. First-time homebuyers can also qualify for a mortgage tax credit through TSAHC, but you don’t have to be a first-time homebuyer to get a mortgage or down payment assistance. Further, you will have to utilize down payment assistance to obtain a mortgage tax credit.

Who qualifies

Borrowers must:

  • Have a minimum 620 credit score
  • Have annual income within the program limits, which vary by county. You can use a tool on TSAHC’s website to find out what the limit is for your area.
  • Purchase a home within the program’s price limits, which vary by location
  • Use an approved TSAHC lender
  • Take a homebuyer education course

How much can you save with a mortgage tax credit? Calculate it here.

My First Texas Home

If you’re a Texas first-time homebuyer or a veteran, this program can help you cover down payment and closing costs. It offers funds up to 5% of the mortgage loan amount, in the form of a 30-year, interest-free second mortgage. However, there’s also an option for a 3-year second mortgage that’s forgivable, meaning you won’t have to repay the money as long as you stay in the home for at least three years. Mortgage credit certificates are also available and can be combined with the other funds.

Who qualifies

Borrowers must:

  • Be a first-time homebuyer or veteran
  • Have a minimum 620 credit score
  • Earn within annual income limits
  • Purchase a home within the program’s price limits
  • Use an approved lender

Who qualifies as a first-time homebuyer?

Borrowers must be:

  • People who have never owned a home
  • People who haven’t owned real estate in the last three years

VLB Veterans Land Loan Program

The Veterans Land Board (VLB) is a great resource for Texans who have served in the military and want to purchase a home and land separately. Maybe you have the perfect piece of land picked out, or perhaps you’ll know it when you see it — either way, as long as you’re a qualified military borrower, this program can help you purchase land in Texas with funding up to $150,000.

Who qualifies

Borrowers must:

  • Be a legal resident of Texas
  • Have a qualifying military record
  • Make at least a 5% down payment

Learn about different types of TX mortgage loans

  • Texas conventional loans
    Conventional loans are a traditional choice for homebuyers, especially those with decent credit. Conventional loan requirements (including minimum credit scores) are set, in most cases, by Fannie Mae and Freddie Mac.
  • Texas FHA loans
    FHA loan requirements aren’t nearly as strict, especially when it comes to credit scores. Borrowers with credit scores as low as 500 can qualify, though they’ll have to make a 10% down payment. Borrowers with at least a 580 score can put down as little as 3.5%.
  • Texas VA loans
    VA loan requirements are the most flexible of all, but you’ll have to be a qualified military borrower to take advantage of them. Most VA loan borrowers don’t have to put any money down in order to purchase a home.
  • Texas streamline refinances
    come in two flavors: FHA streamline refinance loans and VA interest rate reduction refinance loans (IRRRLs). They’re a faster and simpler way to refinance, but you have to be refinancing an FHA or VA loan, and you have to stay with the same program for your new home loan.

Home Home Loan Mortgage Rates Current Texas Mortgage and Refinance Rates