Getting the Best Mortgage Rates in Texas (10-15-30-Year Fixed, 5/1, 7/1 ARM, Jumbo, VA Loans)
Are you looking to buy a house in Texas? Are you looking to refinance an existing Texas mortgage loan for a home you already possess?
Refinancing or buying a new home in Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Laredo, Lubbock, or any other city in Texas will be one of the most important purchases you will ever make.
As such, it is important that you take the time to compare current mortgage rates in Texas, as well as get information on the best mortgage lenders in Texas, before you commit to a long-term mortgage loan.
Conducting a mortgage comparison between lenders providing home loans in Texas before you purchase your home is very critical, as today’s Texas mortgage rates are constantly changing.
Best Mortgage Rates in Washington (WA) for Good Credit
Current & Best Mortgage Rates in Michigan for Good Credit
Which Texas City Are You Located in?
Mortgage loans and rates for Texas residents with good, best, and excellent credit scores are based on a couple of factors: the city in which they are located, amount of down payment, total loan amount, condition of the house, neighborhood risk factor, and credit history.
Most mortgage lenders in Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Laredo, and Lubbock require a down payment of around 20%. Below is a list of some of the largest cities in Texas.
Cities in Texas | Population |
| Houston | 2,100,389 |
| San Antonio | 1,327,407 |
| Dallas | 1,197,816 |
| Austin | 790,390 |
| Fort Worth | 741,206 |
| El Paso | 649,121 |
| Arlington | 365,438 |
| Corpus Christi | 305,215 |
| Plano | 259,841 |
| Laredo | 236,091 |
| Lubbock | 229,573 |
| Garland | 226,876 |
| Irving | 216,290 |
| Amarillo | 190,695 |
| Grand Prairie | 175,396 |
| Brownsville | 175,023 |
| McKinney | 131,117 |
| Frisco | 116,989 |
| Pasadena | 149,043 |
| Mesquite | 139,824 |
| Killeen | 127,921 |
| McAllen | 130,242 |
| Carrollton | 119,097 |
| Midland | 111,147 |
| Waco | 124,805 |
| Denton | 113,383 |
| Abilene | 117,063 |
| Odessa | 99,940 |
| Beaumont | 118,296 |
| Round Rock | 99,887 |
| The Woodlands | 93,847 |
| Richardson | 99,223 |
| Pearland | 91,252 |
| College Station | 93,857 |
| Wichita Falls | 104,553 |
| Lewisville | 95,290 |
| Tyler | 96,500 |
| San Angelo | 93,200 |
| League City | 83,560 |
| Allen | 84,246 |
| Sugar Land | 78,817 |
| Edinburg | 77,100 |
| Mission | 77,058 |
| Longview | 80,455 |
| Bryan | 76,201 |
| Pharr | 70,400 |
| Baytown | 71,802 |
| Missouri City | 67,358 |
| Temple | 66,102 |
| Flower Mound | 64,669 |
| New Braunfels | 57,740 |
| North Richland Hills | 63,343 |
| Conroe | 56,207 |
| Victoria | 62,592 |
| Cedar Park | 48,937 |
| Harlingen | 64,849 |
| Atascocita (CDP) | 65,844 |
| Mansfield | 56,368 |
| Georgetown | 47,400 |
| San Marcos | 44,894 |
| Rowlett | 56,199 |
| Pflugerville | 46,936 |
| Port Arthur | 53,818 |
| Spring (CDP) | 54,298 |
| Euless | 51,277 |
| DeSoto | 49,047 |
| Grapevine | 46,334 |
| Galveston | 47,743 |
Source: Wikipedia
Texas Mortgage Loans That Are Above $424,100 May Qualify for Lower Home Loan Terms
If you have a good-to-excellent credit score history, and you are seeking a home loan in Texas that totals more than $424,100, some Texas home loan lenders may provide more favorable rates and terms.
As such, when communicating with your mortgage lender, you should confirm your loan terms for your requested loan amount.
Best CD Rates in PA | Pittsburgh, Philadelphia & Other Pennsylvania Cities
Best CD Rates in Ohio for People with Good & Great Credit
Mortgage Loan Types in Texas
Lenders that provide mortgage loans in Texas provide a wide range of conventional and adjustable-rate loan types, including those listed below.
Conventional mortgage loans in Texas:
- 10-year mortgage loans
- 15-year mortgage loans
- 20-year mortgage loans
- 30-year mortgage loans
A conventional mortgage loan in Texas is a loan that has a fixed-interest rate that won’t change throughout the life of the loan. A “conventional” (also referred to as a conforming) mortgage conforms to established industry and regulatory guidelines based on the size of the loan and your financial situation.
Terms for these conventional loans typically range from 10 to 30 years.
Shorter-termed 10-, 15-, 20-year fixed-rate mortgages normally have lower interest rates than the longer 30-year fixed mortgage loan. For example, below is a conventional mortgage rate table from U.S.Bank’s website that shows reduced rates for 20>15>10 year loans.
These shorter-termed 10-year, 15-year, and 20-year Texas loans can help you pay off your home faster and build equity more quickly. However, your monthly payments (interest and principal) will be higher than with a 30-year loan.
The 10-year, 15-year, and 20-year fixed-rate mortgages are especially popular for refinancing.
Adjustable-rate mortgages in Texas include:
- 5/1 ARM
- 7/1 ARM
- 3/1 ARM
Taxes and Insurance Excluded from the Texas Mortgage Terms
Something you should note on the Texas mortgage comparison tables above is that the rates and monthly payment figures do not reflect state taxes that are required by the state of Texas.
Your monthly mortgage loan payment amount will be greater after taxes and insurance premiums are included.
Dallas, Texas
Best CD Rates in California for Good Credit (1-Month to 5-Year CDs)
Best CD Rates in Florida for Good-to-Great Credit
Key Requirements for Buying a House in Texas
Whether you are a first-time home buyer in Texas or refinancing an existing mortgage in Texas, it is important that you complete the below list before, or immediately after you apply for a Texas mortgage loan.
- Get your down payment ready for your Texas home (~20% of the loan amount)
- Maintain a good, great, or excellent credit score
- Figure out which loan type you need: a conventional mortgage loan (30-year mortgage, which is the most common, or a 10-year, 15-year, or 20-year conventional mortgage) or an adjustable-rate mortgage loan (5/1, 3/1, or 7/1 ARM)
- Save extra funds for closing costs (there might be some last minute expenses that you’ll need to pay)
- Maintain a low debt balance
- Gather your financial documents
- Get a home appraisal on the Texas home
Good, Great, or Excellent Credit Score
Most mortgage home lenders that provide loans in Texas use a type of credit score known as a FICO score to determine if a Texas-based borrower is creditworthy or not.
FICO scores range anywhere from 300 to 850, with the higher numbers being considered the most creditworthy, and the lower numbers being considered the biggest financial risk.
The table below shows the average FICO score from 2005 – 2015. According to CNBC, as of this year, the average credit score is 700.
Conclusion – Finding the Best Texas Mortgage Loan for a Home in Texas
Buying a home in Texas is not a quick, next day process. Mortgage processing (from start of application to closing) normally takes between 30-45 days, on average. As such, you need to have a plan set in place for buying your Texas house or refinancing your existing Texas mortgage loan to avoid extra expenses and additional delays.
If you are in the market to buy a home in the state of Texas, a lower down payment can be an option. A lower down payment is great, because it allows you to purchase a new house, and immediately start building home equity.
The flip side to a lower down payment is that you have to pay mortgage insurance. Conventional loans sometimes allow you to waive the PMI mortgage insurance if you provide a down payment of 20% or more.
Best Wyoming Mortgage Rates | Top WY Mortgage & Refinance Rates for Good-Excellent Credit Borrowers
Current Mortgage Rates in North Dakota | Mortgage Rates in ND for Good-Excellent Credit Borrowers
Texas Mortgage Rate and Loan Tables Disclaimer
Click here to read AdvisoryHQ’s disclaimer on the mortgage loan table(s) displayed on this page.
Image Sources:
- https://www.usbank.com/home-loans/mortgage/conventional-fixed-rate-mortgages.html
- pixabay.com/en/dallas-texas-skyline-dusk-usa-555778/
- http://www.fico.com/en/blogs/wp-content/uploads/2015/08/April-2015-Average-FICO-Score.png
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.