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Mortgage rates in Texas

Interest rates on a 30-year $300,000 conventional mortgage start at around 3.125%

If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.188% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Texas home will depend on several factors, including your credit score, loan amount and lender.

Rates were last checked on October 6 and are from the Consumer Financial Protection Bureau (CFPB) website.

Your credit score affects the rate you’ll get

People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Texas by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).

Credit score $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
620-639 3.875% 3.875% 3.750% 3.750%
640-659 3.750% 3.688% 3.563% 3.563%
660-679 3.500% 3.500% 3.375% 3.375%
680-699 3.313% 3.250% 3.250% 3.250%
700-719 3.250% 3.250% 3.188% 3.188%
720-739 3.125% 3.125% 3.125% 3.125%
740-759 3.125% 3.125% 3.000% 3.000%
760-779 3.125% 3.125% 3.000% 3.000%
780-799 3.125% 3.125% 3.000% 3.000%
800+ 3.125% 3.125% 3.000% 3.000%

*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage

Interest rates vary by lender

Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.

Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.

Name Product Loan products offered State availability Min. credit score
SoFi
(NMLS #1121636)
SoFi
Conventional, Home equity, Refinance
Not available in: HI, MO, NM, NY, WV
620
No hidden fees, multiple loan terms, and member discounts available.
Rocket Mortgage
(NMLS #3030)
Rocket Mortgage
Conventional, Jumbo, FHA, VA, Refinance
Available in all states
620
Streamline your mortgage from quote to final payment — all from your computer or phone.
Better
(NMLS #330511)
Better
Conventional, Jumbo, FHA, Refinance
Not available in: HI, MA, MN, NV, NH, VT, VA
620
Online preapproval in minutes and no origination fees with this direct lender.
LendingTree
(NMLS #1136)
LendingTree
Conventional, Jumbo, FHA, VA, USDA, Home Equity, HELOC, Reverse, Refinance
Available in all states
620
Connect with vetted home loan lenders quickly through this online marketplace.
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Compare up to 4 providers

Interest rates also vary by loan type

The type of loan you get can also affect how much you pay for your Texas home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.

Loan type $200,000 mortgage $300,000 mortgage $400,000 mortgage $500,000 mortgage
15-year conventional 2.500% 2.375% 2.375% 2.375%
30-year conventional 3.250% 3.250% 3.188% 3.188%
15-year FHA 2.500% 2.375% Not elegible Not elegible
30-year FHA 3.000% 3.000% Not elegible Not elegible
15-year VA 2.875% 2.625% 2.563% 2.625%
30-year VA 3.125% 3.125% 3.125% 3.125%

*Based on a 10% down payment, fixed interest rate and 710 credit score

Research ahead of time to get the best rates

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.

Home values in Texas are forecast to increase

Texas has long been known as one of the most affordable places to live in the US. But recent market gains have made some concerned that the state could lose that advantage, and according to Zillow, that trend is expected to continue into 2022.

The only city predicted to show little to no growth is Alice, TX, a small town east of Corpus Christi. And while most cities’ home values are forecast to make modest increases, Austin’s expected 24.2% growth is one of the highest in the country. Both Athens and Dallas-Fort Worth may see home values rise by over 15%.

5 fast facts about the Texas housing market

If Texas is your next moving destination, consider the following facts while you shop around for a mortgage:

  1. Texas has several mortgage programs offering assistance with down payments and closing costs, such as the My First Texas Home and My Choice Texas Home programs.
  2. The Texas Mortgage Credit Certificate program allows first-time home buyers and veterans to take a credit on their income taxes.
  3. Listings are down in Texas and demand for housing is up, causing the housing market to break records, such as the average number of days a house is on the market falling to 34 days in 2021.
  4. Texas has the seventh-highest property taxes in the US at 1.81%, but the median price of a home in Texas is still low at $172,500, which means you may pay less than you would in higher-priced markets.
  5. The cost of living in Texas is lower than the national average in everything but transportation, which includes gas prices, licensing and registration fees and mass transportation costs.

Bottom line

Mortgage rates in Texas vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.

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