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Mortgage rates in Texas

You could end up paying less interest than the rest of the country.

Updated

Fact checked

Mortgage rates during the coronavirus

As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.

Compare mortgage lenders in Texas

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.

How much do Texas rates vary?

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.

2018 average rates in Texas by loan

Loan type15-year average rate30-year average rate
Conventional4.592%4.820%
FHA4.236%5.012%
VA3.974%4.576%
USDANot available4.796%

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.

Compare mortgage rates throughout 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
Abilene4.785%$165,000$860
Amarillo4.884%$155,000$820
Austin-Round Rock-Georgetown4.708%$255,000$1,320
Beaumont-Port Arthur4.976%$165,000$880
Brownsville-Harlingen5.000%$145,000$780
College Station-Bryan4.799%$205,000$1,080
Corpus Christi4.919%$185,000$980
Dallas MSA (Collin, Dallas, Denton, Ellis, Hunt, Kaufman and Rockwall Counties)4.809%$255,000$1,340
El Paso4.904%$155,000$820
Dallas MSA (Johnson, Parker, Tarrant and Wise Counties)4.905%$215,000$1,140
Houston-The Woodlands-Sugar Land4.857%$215,000$1,140
Killeen-Temple4.755%$165,000$860
Laredo4.948%$165,000$880
Longview5.017%$145,000$780
Lubbock4.796%$165,000$870
McAllen-Edinburg-Mission5.027%$155,000$830
Midland4.871%$245,000$1,300
Odessa4.986%$195,000$1,050
San Angelo4.859%$165,000$870
San Antonio-New Braunfels4.793%$215,000$1,130
Sherman-Denison4.983%$175,000$940
Texarkana MSA (Bowie County, MSA)4.828%$145,000$760
Tyler4.840%$175,000$920
Victoria4.876%$165,000$870
Waco4.936%$175,000$930
Wichita Falls4.672%$135,000$700

Rates and costs based on data from ffiec.cfpb.gov.

How to get the best mortgage rate in Texas

Work toward getting the best rate possible on your next home loan by paying down your debt and budgeting for closing costs.

  1. Consider all loan types. Lenders generally offer loan programs for first-time homebuyers, rural homes and more, each with a different interest rate. Learn what you might qualify for when comparing options.
  2. Sharpen your DTI. Lenders extend the best rates to borrowers with good to excellent credit and low debt-to-income ratios. Take time to pay down debt for a stronger credit report.
  3. Consider closing costs. You can expect closing costs in the Lone Star State to run you 0.98% to 1.31% of the final purchase price. Some lenders offer lower interest rates for higher closing costs. Review total costs against the rate to understand the real cost of your mortgage.

Historical mortgage interest rates in Texas

Bottom line

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.

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