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Texas Mortgage Rates

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Use SmartAsset's mortgage comparison tool to compare mortgage rates from the top banks and find the one that best suits your needs.

Overview of Texas Mortgages

As a cultural icon comprised of deserts, open outdoor spaces and the Rio Grande River, Texas is certainly a diverse place to own a home. Texas mortgage rates tend to be close to the national average. No Texas counties have conforming loan limits beyond the standard $417,000 limit.

Today's Mortgage Rates in Texas

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National Mortgage Rates

Source: Freddie Mac Primary Mortgage Market Survey, SmartAsset Research
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Texas Mortgage Rates Quick Facts
  • Median Home Value: $155,400 (Zillow)
  • Loan Funding Rate: 59.3%
  • Average Mortgage Rate: 4%
  • Homeownership Rate: 61.9% (St. Louis Fed)
  • Average Annual Mortgage Payment: $7,123

Historical Mortgage Rates in Texas

The largest state in the Continental U.S., Texas has a sizable mortgage market. Texas mortgage rates are on par with rates in the rest of the U.S. 2016 Texas mortgage rates are on average higher than 2015 Texas mortgage rates.

Texas Historic Mortgage Rates

YearTexas RateU.S. Rate
198214.4814.73
198312.4112.26
198411.9811.99
198511.2011.17
19869.839.79
19879.208.95
19889.488.98
19899.929.81
19909.899.74
19919.179.07
19928.027.83
19937.056.93
19947.557.31
19957.647.69
19967.667.58
19977.577.52
19986.996.97
19997.237.14
20008.037.86
20017.016.94
20026.616.44
20035.815.67
20045.945.68
20055.985.85
20066.716.54
20076.546.42
20086.156.06
20095.045.05
20104.764.81
20114.524.56
20123.593.65
20133.803.84
20144.084.13
20153.793.88

Texas Mortgages Overview

Getting a mortgage in Texas is a more consumer-friendly process than in some other states. The state government has put consumer protections in place that help prevent foreclosure. The state did not allow home equity loans until 1997. Even now, the rules that govern Texas mortgages are designed to limit the risk that homeowners can take on.

The biggest example of this special feature of the Texas mortgage market is the fact that, in Texas, the total of all mortgage debt on a home can’t legally exceed 80% of the home’s market value. That means that you can’t pile on, say, a second mortgage and a home equity loan and end up owing way more than your home is worth, as residents in some states did before the foreclosure crisis.

Texas Mortgage Rates

Single-Family Homes
Percentage of Homes81.50%
Average Property Value$138,403.00
Condominiums
Percentage of Homes4.20%
Average Property Value$193,621.80
PUD Homes
Percentage of Homes10.40%
Average Property Value$149,612.99
Townhomes
Percentage of Homes3.90%
Average Property Value$152,753.52

So, if you only have 20% equity in your home you won’t be allowed to get a home equity loan at all because the mortgage debt on your home is at that 80% cut-off. You can calculate the home equity loan you can legally have on your home by multiplying the home’s value by 0.8 and then subtracting the amount you still owe on the home. You can’t have more than one home equity loan on a single home and neither can you take out more than one home equity loan in a single year.

Texas law also imposes limits on lenders in the Texas mortgage market. Fees and costs are capped at 3% of the loan principal, for example, and rush loan jobs are forbidden. Even after closing on a mortgage you have three days to change your mind and cancel the transaction without having to pay a penalty for doing so.

Another stand-out feature of the Texas mortgage market is that Texas is a non-recourse state. That means that if you go through foreclosure and you owe your lender more than your home is worth the lender can’t go after you for the “deficiency,” the difference between what you owe the bank and what the bank can now get for your home on the market.

Foreclosures can be either judicial or non-judicial in Texas. If you have a traditional mortgage document your lender will probably have to go through judicial foreclosure to reclaim the home and this can be a lengthy process. You may instead have a deed of trust, which allows the lender to do a “power of sale” foreclosure.

With a “power of sale” clause in your mortgage or deed of trust you’re authorizing the lender to sell the home to recoup money if you default on your mortgage. This sale process, generally done by public auction, goes much more quickly than judicial foreclosure. However, Texas law requires that the bank give borrowers 20 days and plenty of notice to make delinquent payments before foreclosing. You can also bid on your own home during a foreclosure auction in Texas.

30-Year Fixed Mortgage Rates in Texas

Most homeowners in the U.S. opt for a fixed-rate, 30-year mortgage and Texas is no exception. Interest rates on fixed-rate 30-year loans are generally higher than for mortgages with a 15-year term, but 15-year loans often come with monthly payments that are too high for regular borrowers. Why? Because with a 15-year mortgage you have half as much time to pay off the same amount of debt.

The average Texas mortgage rate for fixed-rate 30-year mortgages is 4.17%.

Texas Jumbo Loan Rates

In general the conforming limit for mortgages in the U.S. is $417,000. Any loan above that is considered a “non-conforming” or “jumbo loan” and may come with higher interest rates to compensate for the extra risk that the bank is taking on by lending such a large sum of money. Plus, conforming loans can be sold on to Freddie Mac or Fannie Mae but jumbo loans cannot.

In certain high-cost counties in the country there are higher conforming loan limits. Texas, however, has no counties where the conforming loan limit exceeds $417,000 for a single-family home.

The average Texas jumbo loan rate is 3.75%.

Conforming and FHA Loan Limits by County

CountyConforming LimitFHA Limit
Anderson$417,000 $271,050
Andrews$417,000 $271,050
Angelina$417,000 $271,050
Aransas$417,000 $271,050
Archer$417,000 $271,050
Armstrong$417,000 $271,050
Atascosa$417,000 $316,250
Austin$417,000 $330,050
Bailey$417,000 $271,050
Bandera$417,000 $316,250
Bastrop$417,000 $333,500
Baylor$417,000 $271,050
Bee$417,000 $271,050
Bell$417,000 $271,050
Bexar$417,000 $316,250
Blanco$417,000 $271,050
Borden$417,000 $271,050
Bosque$417,000 $271,050
Bowie$417,000 $271,050
Brazoria$417,000 $330,050
Brazos$417,000 $271,050
Brewster$417,000 $271,050
Briscoe$417,000 $271,050
Brooks$417,000 $271,050
Brown$417,000 $271,050
Burleson$417,000 $271,050
Burnet$417,000 $271,050
Caldwell$417,000 $333,500
Calhoun$417,000 $271,050
Callahan$417,000 $271,050
Cameron$417,000 $271,050
Camp$417,000 $271,050
Carson$417,000 $271,050
Cass$417,000 $271,050
Castro$417,000 $271,050
Chambers$417,000 $330,050
Cherokee$417,000 $271,050
Childress$417,000 $271,050
Clay$417,000 $271,050
Cochran$417,000 $271,050
Coke$417,000 $271,050
Coleman$417,000 $271,050
Collin$417,000 $334,650
Collingsworth$417,000 $271,050
Colorado$417,000 $271,050
Comal$417,000 $316,250
Comanche$417,000 $271,050
Concho$417,000 $271,050
Cooke$417,000 $271,050
Coryell$417,000 $271,050
Cottle$417,000 $271,050
Crane$417,000 $271,050
Crockett$417,000 $271,050
Crosby$417,000 $271,050
Culberson$417,000 $271,050
Dallam$417,000 $271,050
Dallas$417,000 $334,650
Dawson$417,000 $271,050
Deaf Smith$417,000 $271,050
Delta$417,000 $271,050
Denton$417,000 $334,650
De Witt$417,000 $271,050
Dickens$417,000 $271,050
Dimmit$417,000 $271,050
Donley$417,000 $271,050
Duval$417,000 $271,050
Eastland$417,000 $271,050
Ector$417,000 $271,050
Edwards$417,000 $271,050
Ellis$417,000 $334,650
El Paso$417,000 $271,050
Erath$417,000 $271,050
Falls$417,000 $271,050
Fannin$417,000 $271,050
Fayette$417,000 $271,050
Fisher$417,000 $271,050
Floyd$417,000 $271,050
Foard$417,000 $271,050
Fort Bend$417,000 $330,050
Franklin$417,000 $271,050
Freestone$417,000 $271,050
Frio$417,000 $271,050
Gaines$417,000 $271,050
Galveston$417,000 $330,050
Garza$417,000 $271,050
Gillespie$417,000 $271,050
Glasscock$417,000 $271,050
Goliad$417,000 $271,050
Gonzales$417,000 $271,050
Gray$417,000 $271,050
Grayson$417,000 $271,050
Gregg$417,000 $271,050
Grimes$417,000 $271,050
Guadalupe$417,000 $316,250
Hale$417,000 $271,050
Hall$417,000 $271,050
Hamilton$417,000 $271,050
Hansford$417,000 $271,050
Hardeman$417,000 $271,050
Hardin$417,000 $271,050
Harris$417,000 $330,050
Harrison$417,000 $271,050
Hartley$417,000 $271,050
Haskell$417,000 $271,050
Hays$417,000 $333,500
Hemphill$417,000 $271,050
Henderson$417,000 $271,050
Hidalgo$417,000 $271,050
Hill$417,000 $271,050
Hockley$417,000 $271,050
Hood$417,000 $334,650
Hopkins$417,000 $271,050
Houston$417,000 $271,050
Howard$417,000 $271,050
Hudspeth$417,000 $271,050
Hunt$417,000 $334,650
Hutchinson$417,000 $271,050
Irion$417,000 $271,050
Jack$417,000 $271,050
Jackson$417,000 $271,050
Jasper$417,000 $271,050
Jeff Davis$417,000 $271,050
Jefferson$417,000 $271,050
Jim Hogg$417,000 $271,050
Jim Wells$417,000 $271,050
Johnson$417,000 $334,650
Jones$417,000 $271,050
Karnes$417,000 $271,050
Kaufman$417,000 $334,650
Kendall$417,000 $316,250
Kenedy$417,000 $271,050
Kent$417,000 $271,050
Kerr$417,000 $271,050
Kimble$417,000 $271,050
King$417,000 $271,050
Kinney$417,000 $271,050
Kleberg$417,000 $271,050
Knox$417,000 $271,050
Lamar$417,000 $271,050
Lamb$417,000 $271,050
Lampasas$417,000 $271,050
La Salle$417,000 $271,050
Lavaca$417,000 $271,050
Lee$417,000 $271,050
Leon$417,000 $271,050
Liberty$417,000 $330,050
Limestone$417,000 $271,050
Lipscomb$417,000 $271,050
Live Oak$417,000 $271,050
Llano$417,000 $271,050
Loving$417,000 $271,050
Lubbock$417,000 $271,050
Lynn$417,000 $271,050
Mcculloch$417,000 $271,050
Mclennan$417,000 $271,050
Mcmullen$417,000 $271,050
Madison$417,000 $271,050
Marion$417,000 $271,050
Martin$417,000 $285,200
Mason$417,000 $271,050
Matagorda$417,000 $271,050
Maverick$417,000 $271,050
Medina$417,000 $316,250
Menard$417,000 $271,050
Midland$417,000 $285,200
Milam$417,000 $271,050
Mills$417,000 $271,050
Mitchell$417,000 $271,050
Montague$417,000 $271,050
Montgomery$417,000 $330,050
Moore$417,000 $271,050
Morris$417,000 $271,050
Motley$417,000 $271,050
Nacogdoches$417,000 $271,050
Navarro$417,000 $271,050
Newton$417,000 $271,050
Nolan$417,000 $271,050
Nueces$417,000 $271,050
Ochiltree$417,000 $271,050
Oldham$417,000 $271,050
Orange$417,000 $271,050
Palo Pinto$417,000 $271,050
Panola$417,000 $271,050
Parker$417,000 $334,650
Parmer$417,000 $271,050
Pecos$417,000 $271,050
Polk$417,000 $271,050
Potter$417,000 $271,050
Presidio$417,000 $271,050
Rains$417,000 $271,050
Randall$417,000 $271,050
Reagan$417,000 $271,050
Real$417,000 $271,050
Red River$417,000 $271,050
Reeves$417,000 $271,050
Refugio$417,000 $271,050
Roberts$417,000 $271,050
Robertson$417,000 $271,050
Rockwall$417,000 $334,650
Runnels$417,000 $271,050
Rusk$417,000 $271,050
Sabine$417,000 $271,050
San Augustine$417,000 $271,050
San Jacinto$417,000 $271,050
San Patricio$417,000 $271,050
San Saba$417,000 $271,050
Schleicher$417,000 $271,050
Scurry$417,000 $271,050
Shackelford$417,000 $271,050
Shelby$417,000 $271,050
Sherman$417,000 $271,050
Smith$417,000 $271,050
Somervell$417,000 $334,650
Starr$417,000 $271,050
Stephens$417,000 $271,050
Sterling$417,000 $271,050
Stonewall$417,000 $271,050
Sutton$417,000 $271,050
Swisher$417,000 $271,050
Tarrant$417,000 $334,650
Taylor$417,000 $271,050
Terrell$417,000 $271,050
Terry$417,000 $271,050
Throckmorton$417,000 $271,050
Titus$417,000 $271,050
Tom Green$417,000 $271,050
Travis$417,000 $333,500
Trinity$417,000 $271,050
Tyler$417,000 $271,050
Upshur$417,000 $271,050
Upton$417,000 $271,050
Uvalde$417,000 $271,050
Val Verde$417,000 $271,050
Van Zandt$417,000 $271,050
Victoria$417,000 $271,050
Walker$417,000 $271,050
Waller$417,000 $330,050
Ward$417,000 $271,050
Washington$417,000 $271,050
Webb$417,000 $271,050
Wharton$417,000 $271,050
Wheeler$417,000 $271,050
Wichita$417,000 $271,050
Wilbarger$417,000 $271,050
Willacy$417,000 $271,050
Williamson$417,000 $331,200
Wilson$417,000 $316,250
Winkler$417,000 $271,050
Wise$417,000 $310,500
Wood$417,000 $271,050
Yoakum$417,000 $271,050
Young$417,000 $271,050
Zapata$417,000 $271,050
Zavala$417,000 $271,050

Texas ARM Loan Rates

An ARM is an adjustable-rate mortgage. Unlike a fixed-rate loan, where the interest rate on your mortgage debt stays the same throughout the life of the loan, adjustable-rate mortgages have interest rates that can, well, adjust.

With an ARM you’ll generally get a low introductory interest rate, lower than the rates you may see for fixed-rate loans. However, after a period of 1,3,5,7 or 10 years depending on the terms of your loan, that introductory rate will end and your interest rate will change. It will likely increase, though the size of the increase will be capped in the terms of your loan. Adjustable-rate mortgages are more risky for borrowers, but if you’re confident you can re-sell the home before the low introductory rate ends you may deem an ARM worth it.

The average rate for an ARM in Texas is 4%.

Texas Mortgage Resources

The Texas Department of Housing and Community Affairs (TDHCA) offers mortgage help for first-time homebuyers. There are two main programs that the TDHCA offers. The first is called My First Texas Home. Through My First Texas Home, eligible applicants can get 30-year fixed, low-interest-rate mortgages. Up to 5% of the home loan amount will be available to help with a down payment or closing costs.

Available Resources

ResourceProblem or IssueWho QualifiesWebsite
Texas Department of Housing and Community Affairs - My First Texas Home ProgramDown payment assistance for first-time homebuyers, closing cost assistance and competitive interest rates are available through the My First Texas Home Program.To qualify, Texans must meet the income and purchase price limits for the area where they intend to purchase a home.http://www.tdhca.state.tx.us/homeownership/fthb/down-payment-assistance.htm
Texas Department of Housing and Community Affairs - Mortgage Credit CertificateThe Texas Mortgage Credit Certificate provides qualified borrowers with up to $2,000 per year in a federal income tax credit based on mortgage interest paid in the tax year. Applicants must be first-time homebuyers and must meet income and purchase price limits. https://www.tdhca.state.tx.us/homeownership/fthb/mort_cred_certificate.htm
Department of Housing and Urban Development (HUD)Housing counseling, foreclosure avoidance counseling.Homeowners who are delinquent on mortgage payments are eligible for free housing counseling from HUD-approved counseling agencies in Texas.https://www.hudexchange.info/programs/housing-counseling/

The other benefit TDHCA offers is a Mortgage Credit Certificate. With a Texas Mortgage Credit Certificate, qualified borrowers get up to $2,000 per year in a federal income tax credit that’s based on the mortgage interest paid that year. It’s an extra benefit at tax season that complements the Mortgage Interest Tax Deduction. The low-interest mortgage loan from My First Texas Home and Texas Mortgage Credit Certificate can be combined or used separately.

Interested in taking advantage of TDHCA’s programs? You must be a first-time homebuyer who hasn’t owned a home as your primary residence in the last three years. You won’t be able to get TDHCA help with an investment property or summer house.

There are also income limits (up to 115% of the area median family income) and limits on the purchase price of qualifying homes (the limit varies by county). Wealthy Texans and those who want to buy mansions should look elsewhere. There are also minimum credit score and maximum debt-to-income ratio requirements to qualify for the home-buying help from TDHCA.

TDHCA doesn’t actually issue you a home mortgage. Instead, they work with participating lenders throughout the state and limit the fees those lenders can charge you. If you qualify and choose to participate you will be required to participate in homebuyer education and you will not be allowed to rent out the home you buy through the program.

If your income is a little higher, don’t assume you don’t qualify. In certain targeted areas that have historically been economically depressed, TDHCA allows a higher income and purchase price limits to entice development. You can check area limits on the table above. The TDHCA website offers links to foreclosure prevention resources through the federal government and groups like the Homeownership Preservation Foundation.

Texas Mortgage Taxes

Once you’ve got your Texas mortgage, how will your tax bill change? As mentioned above, qualified applicants can get a Texas Mortgage Credit Certificate that will give them a tax credit when they file their federal income taxes. Remember that a tax credit is a dollar-for-dollar reduction in your tax liability – the amount you owe the government. If you have more money in tax credits than in tax liability your refund will increase by that amount. A tax deduction, by contrast, reduces your taxable income.

Even if you don’t qualify for a Texas Mortgage Credit Certificate, you can still deduct your mortgage interest on your federal income tax return. Texas has no state income tax, so no state-level deduction is necessary.

Though it doesn’t have a state income tax, Texas does have property taxes. In fact, Texas has some of the highest property tax rates in the U.S. The average effective property tax rate in Texas is 1.94%, the fourth-highest rate in the country.

Texas does not have real estate transfer taxes – taxes imposed on the transfer of the title to real estate property within a given municipality, county or state. That means you won’t owe extra taxes when it comes time to sell your home.

Texas Mortgage Refinance

Ready to refinance your Texas mortgage? If you already receive a Mortgage Credit Certificate for your existing mortgage you can apply to continue receiving that credit after you refinance to a new mortgage. You’ll need to fill out the TDHCA Mortgage Credit Certificate Program’s “Refinance of MCC Loan Application” with details of your refinance such as the balance owed on your original loan and the new loan amount. If your application is approved you will continue to receive the MCC credit at the same rate as your original credit.

Whether or not you qualify for a Texas MCC, you may qualify for refinance help from the federal government. You can apply to refinance through a program like HARP, the Home Affordable Refinance Program. HARP offers refinance assistance to homeowners with little or no home equity, or who owe more money than their home is worth – in other words, people who have a hard time getting a traditional lender to help them with a refinance.

Best Places To Get A Mortgage

SmartAsset’s interactive mortgage map highlights the best counties in the country (and in each state) for securing a mortgage. Hover over counties and states to see data points for each region, or use the map’s tabs to view the top counties for each of the factors driving our analysis.

Worst
Better
Rank County Loan Funding Rate 5 Year Borrowing Costs Property Tax Annual Mortgage Payment

Methodology For many people buying a house means securing a mortgage. To determine the best places in the country to get a mortgage we looked at four factors: overall borrowing costs, ease of securing a mortgage, cheap property taxes and cheap annual mortgage payments.

To calculate the overall borrowing costs, we looked at the expected costs over the first five years of a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to actual mortgage originations (secured mortgages) in each county. We based annual mortgage payments on the annual principal and interest payments for a $200,000 loan in that location, using average mortgage rates in each county.

Finally, we ranked locations based on these four factors, and then averaged those rankings, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.

Sources: Mortgage Bankers Association, US Census Bureau 2015 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset