Editor's choice: Rocket Mortgage(NMLS #3030)
- Choose this lender for fast turnaround times
- Choose another lender if you want to meet your loan officer in person
- A good option for borrowers who prefer a fully online application process
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Editor's choice: Rocket Mortgage(NMLS #3030)
Rates on a 30-year mortgage in Texas average about 4.801%. With 75% of the counties in the Lone Star State classified as rural, you might qualify for a USDA Rural Development or other government-backed mortgages at even lower rates — and with low to no down payments.
Average mortgage rates in Texas ranged from 3.974% to a high 5.012% in 2018. Many factors affect the rate you’re approved for, including your loan type, the term and your creditworthiness.
Loan type15-year average rate30-year average rate
Rates based on data from ffiec.cfpb.gov.
To illustrate what these rates mean to your wallet, let’s say you’re looking to buy a home in Texas that’s valued at $185,000. A conventional 30-year mortgage at 4.820% might cost you $970 a month, excluding taxes and fees. If you qualify for an FHA loan at 5.012%, it might work out to a monthly mortgage payment of $990.
A mere 0.192% difference in interest rates could keep about $7,780 in your wallet — rather than as interest payments to the bank.
Mortgage rates in Texas are expected to stay under 4% in the coming year.
Although the average interest rate was 0.01% higher than the rest of the country in 2018, Texas usually comes in slightly under the rest of the country. In fact, in the past decade, mortgage rates in Texas ranked 0.05% lower than the average national rate.
As housing agencies nationwide are expecting 30-year rates to average about 3.70%, we can expect comparable performance in Texas.
The Lone Star State is mainly rural but hosts a variety of metropolitan areas, each with a slightly different average mortgage rate and range of home values. That means a homeowner in Dallas will likely pay a higher mortgage payment than a fellow Texan in Brownsville.
We studied data from the Home Mortgage Disclosure Act to learn what the average 30-year fixed-rate mortgage might cost you in metropolitan areas throughout the state. Rates and amounts don’t include taxes, private mortgage insurance or other fees.
Metropolitan statistical area (MSA)Average mortgage rateMedian loan amountEstimated monthly cost
|Dallas MSA (Collin, Dallas, Denton, Ellis, Hunt, Kaufman and Rockwall Counties)||4.809%||$255,000||$1,340|
|Dallas MSA (Johnson, Parker, Tarrant and Wise Counties)||4.905%||$215,000||$1,140|
|Houston-The Woodlands-Sugar Land||4.857%||$215,000||$1,140|
|San Antonio-New Braunfels||4.793%||$215,000||$1,130|
|Texarkana MSA (Bowie County, MSA)||4.828%||$145,000||$760|
Rates and costs based on data from ffiec.cfpb.gov.
Work toward getting the best rate possible on your next home loan by paying down your debt and budgeting for closing costs.
Average mortgage rates in Texas are lower than the national average historically. To make sure you’re getting the strongest rates you’re eligible for, shop around for lenders and loans before signing a contract.
What state homeownership programs for first-time homebuyers does Texas support?
Texas offers home loans and down payment assistance grants to eligible first-time homebuyers.
Homes for Texas Heroes Home Loan Program. Borrowers with heroic professions, such as teachers, police and correctional officers, firefighters, EMS personnel and veterans, can qualify for a special 30-year fixed interest rate.
Homes Sweet Texas Home Loan Program. For homebuyers with low- to moderate-incomes through a participating lender. Down payment assistance (DPA). Receive up to 5% of the loan amount as a grant that you don’t need to repay or a second lien loan that is forgiven after three years.
Where can I attend a homebuyer education course in Texas?
Through the Texas State Affordable Housing Corporation. Online homebuyer classes range from $25 to $99, with local classes free or up to $50.
How much should I budget for property taxes in Texas?
Texas comes in third for the highest property taxes in the nation at 2.18%.
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