Advertising Disclosure

Today's Mortgage Rates in Texas

Today’s mortgage and refinance rates plus current home buying and refinance advice for Texas residents

Buying a home in Texas

The good news for those buying a home in Texas is that real estate prices are relatively affordable. Note: "relatively." They’re affordable by comparison with some other big, populous states, like California. At one point, the median home sales price in California’s most expensive metropolitan area was nearly four times that of Texas’s. That may have changed by the time you read this. But probably not by much. There’s another good thing about buying a home in Texas. Your seller is obliged to tell you about any known material defects. This typically comes in the shape of a three-page form designed by the Texas Real Estate Commission (TREC). Chances are, you’ll be given that completed form before you sign a purchase agreement. But if you get it after, you’re entitled to cancel your offer within seven days of your actual receipt of the form if something looks amiss. The standard Texas Real Estate form is reasonably comprehensive and includes known defects with equipment (HVAC, electrical systems, appliances, swimming pool …) and the home’s structure, including insect infestations. The seller must also tell you if someone died in the home and how. Of course, sellers can only tell you about defects they know about. And they don’t have to get experts in to carry out inspections. So you still might need to commission your own home inspector. But this law can provide valuable protection for homebuyers.

Refinancing a home in Texas

Since 2017, cash-out refinances have been covered by a new law in Texas. This has pros and cons for Texans compared with those in other states. Among the provisions of the 2017 Texas cash-out legislation are:
  • When refinancing with cash out, you can’t borrow more than 80% of your home’s market value. This applies even on loans that usually allow you to borrow larger percentages, such as a VA cash-out refinance
  • An earlier ban on loans on agricultural homesteads no longer applies
  • Your lender can charge you only 2% of the loan value in its own fees. However, this cap does not apply to other fees and charges, including discount points used to buy down the interest rate, appraisal costs, survey costs, title insurance premiums, or a title examination report
  • You can refinance again without taking cash out, proving you wait for a year. Previously, once you had a cash-out loan, you had to stick with those
For Texas homeowners who want to refinance without taking cash out, the rules should be more or less standard. Learn more about how and when to refinance your home here.

Mortgage calculator: Texas

Calculate your mortgage payment for a home in Texas. Start by finding your current mortgage rate using the filters above. Then enter your rate, home price, down payment, and loan term into the mortgage calculator below to estimate your monthly payment.

Reverse mortgages in Texas

Reverse mortgages are available in Texas. These loans — also called “Home Equity Conversion Mortgages" or HECMs — are backed by the Department of Housing and Urban Development (HUD), just like FHA loans. An HECM reverse mortgage lets Texas homeowners use their home equity as a source of cash in retirement. TexasLawHelp points out that Texas homeowners who want a reverse mortgage must meet with an HUD-approved counselor to discuss their options and eligibility first. As the Federal Trade Commission says, "Take your time. A reverse mortgage can be complicated and might not be right for you." "If you do decide to look for one," says the FTC, "review the different types of reverse mortgages, and comparison shop before you decide on a particular company."

Best mortgage lenders in Texas

The best mortgage lenders in Texas are all local, according to customer reviews on Zillow. Top ratings go to: Highland Home Loans, First Rate Financial, LegacyTexas Bank (“Prosperity Bank”), Austin Capital Mortgage, and Sun City Home Loans. If none of those lenders operate in your area, don’t worry. Texas is also well served by large, nationwide mortgage lenders. In fact, ValuePenguin lists the five biggest mortgage companies in Texas as: Wells Fargo, Quicken Loans, Chase Bank, Bank of America, and PlainsCapital Bank. You can use the reviews listed above to compare these major companies and more.

Buying a home doesn't need to be stressful—or expensive.

Let us make your dream home a reality!