Texas Mortgage Rates

Searching for the best mortgage rates in Texas or the current Texas mortgage rates? At Alpine Mortgage, we're committed to finding you the most competitive rates available. Below are today's purchase and refinance mortgage rates on our conventional, FHA and VA loan programs for homes in Texas. For rates on our other loan programs such as investment property loan rates, renovation loan rates, reverse mortgage rates, DSCR loan rates or Non QM loan rates, please reach out to us for a personalized quote. At Alpine Mortgage our mission is simple: to provide you with the lowest mortgage rates in TX specifically tailored to your needs and to offer valuable Texas mortgage resources to help you navigate the mortgage process. 

Current Mortgage and Refinance Rates in Texas

The conventional rates shown are based on a loan amount of $525,000 and a down payment of at least 25%. The FHA rates shown are based on a loan amount of $675,500 and a down payment of at least 3.5%. The VA rates shown are based on a loan amount of $700,000 and no down payment. TX Mortgage rates are subject to change at any time and are subject to mortgage approval with full documentation of income. All rates shown are for a 30 day rate lock with one discount point on the purchase or rate and term refinance of a single family primary residence with a 740 or higher FICO score.

Texas Best Rate Guarantee

Do you want the best deal on your mortgage, but are tired of trying to compare the fine print to determine the difference between the quotes prepared by various lenders? At Alpine Mortgage we are committed to helping you secure the best mortgage rate for your home financing needs which is why we offer our Best Rate Guarantee. We search out the best rate and fees based on your goals and find the best pricing available through our large variety of loan programs.

You are welcome to shop all other local lenders for a better deal. If you can find one, provide us with that lender's signed and dated lock-in agreement and Loan Estimate on the day the interest rate is locked in and we will beat that lender's interest rate and/or lender fees. At Alpine Mortgage, your satisfaction is our priority. With our Best Rate Guarantee, you can shop for your mortgage with confidence, knowing that you are getting the best possible interest rate for your mortgage.

Terms and conditions: Our Best Rate Guarantee applies to our fixed rate conventional, FHA and VA loan programs only and does not apply to any other loan programs. Our Best Rate Guarantee is subject to change or termination at any time without prior notice.

Mortgage Programs in Texas

Texas Conventional Loans. Among the most popular loan options, conventional loans have specific requirements such as a minimum credit score of 620 and a minimum down payment of 3%. Interest rates on these loans can differ greatly based on the credit score and down payment. If you are putting less than 20% down, you will also have to pay private mortgage insurance (PMI) which can be paid either upfront at closing or monthly until your equity in the property reaches at least 20%. These loans can be utilized to purchase a primary residence, vacation property or an investment property.

Texas FHA Loans. If your credit history makes it difficult to secure a conventional loan, a FHA loan may be a good option. A FHA loan is a loan that is insured against default by the Federal Housing Administration (FHA). The minimum down payment on a FHA loan is 3.5% with a minimum credit score of at least 580. For borrowers with a credit score as low as 500, it is still possible to get a FHA loan with a larger down payment of at least 10%. Regardless of the amount of your down payment, FHA loans require the payment of mortgage insurance premiums (MIP). FHA loans are available only on a primary residence and the maximum loan amount varies by county. You can view the current TX FHA Loan Limits for all counties in Texas.

Texas VA Loans. Backed by the Department of Veteran Affairs, VA loans offer veterans home loans with no down payment required. VA loans do not have any mortgage insurance but may have a funding fee that is collected at closing. VA loans are only available on a primary residence.

Texas Non QM Loans. For borrowers that can't qualify for a conventional, FHA or VA loan because of credit issues or income documentation requirements, we offer several different Non QM loan products. For investment properties, we offer our DSCR loan program where qualification is based on the cash flow of the investment property. Our Non QM provides flexibility in lending standards for individuals with unique financial circumstances or credit issues such as a recent bankruptcy or foreclosure. These loans can be used to finance a primary residence, vacation property or an investment property.

Texas Reverse Mortgage Loans. For homeowners that are 62 years or older, a reverse mortgage allows you to access the equity in your home by either receiving a lump sum, fixed monthly payments or a line of credit. Reverse mortgages are only available on a primary residence.

30 Year Fixed and 15 Year Fixed Mortgage Rates in TX

30 year fixed and 15 year fixed mortgages are popular options in Texas. A 30 year fixed mortgage is the most popular choice. The biggest advantage of a 30 year term is lower monthly payments compared to shorter term loans, which can make homeownership more affordable, especially for first-time buyers or those with other significant expenses. Understanding the estimated monthly payment for a 30 year fixed mortgage can help homeowners manage their cash flow more effectively, providing a clearer picture of their financial obligations. This is particularly beneficial for budgeting and long-term financial planning, as it allows for a more predictable expense over the duration of the loan. 15 year fixed loans offer lower interest rates for borrowers that can afford the higher mortgage payment due to the shorter amortization period. We offer 30 year fixed and 15 year fixed loan options on our conventional, FHA, VA and Non QM loan programs.

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Choosing between a 30 Year Fixed and a 15 Year Fixed

• Financial Stability and Cash Flow. If you prefer lower monthly payments for better cash flow management, a 30 year mortgage might be the better choice. It allows more flexibility in budgeting and provides the opportunity to invest surplus funds in other ventures that may offer higher returns.
• Total Cost and Interest. If you can afford higher monthly payments without undue financial strain, a 15-year mortgage will save you money in the long run due to lower interest rates and less total interest paid.
• Equity Building. A 15-year mortgage helps build equity faster, which is beneficial if you plan to sell the home after a few years or leverage the equity for other financial needs.

How to Get the Best Texas Mortgage Rates

Navigating the mortgage market to secure the best rate is crucial for any prospective homeowner. In Texas, where the real estate market is booming, understanding how to find the best mortgage rates can save you a significant amount of money over the life of your loan. Here are some tips to help you get the best mortgage rates in Texas:

Boost Your Credit Score. Your credit score is one of the most important factors lenders consider when determining your mortgage rate. A higher credit score indicates that you're a responsible borrower, which can lead to lower interest rates. To improve your credit score: pay all your bills on time, keep your credit utilization low and dispute any errors on your credit report.

Shop Around and Compare Rates. Compare rates from several companies. Be sure to compare not just the interest rates but also the fees, terms and customer service associated with each loan. Mortgage brokers can be a good resource as they can shop several lenders to find the best deals.

Consider a Shorter Term. While 30-year mortgages are the most common, opting for a shorter loan term, such as a 15-year mortgage, can help you secure a lower interest rate. Although your monthly payments will be higher, you'll pay less in interest over the life of the loan and build equity faster.

Make a Larger Down Payment. A larger down payment can also help you secure better mortgage rates. When you put more money down, you're seen as a lower-risk borrower, which can result in a lower interest rate.

Lock in Your Rate. Once you've found a competitive mortgage rate, consider locking it in. A rate lock guarantees your interest rate for a specified period, typically 30 to 60 days. This protects you from potential rate increases while your loan is being processed.

Understand the Texas Mortgage Market. Texas is known for its diverse and dynamic real estate market, with a range of mortgage products to fit various needs. From urban areas like Dallas and Houston to rural regions, mortgage rates can vary significantly. Staying informed about current trends and market conditions in Texas will give you a competitive edge.

Securing the best mortgage rate in Texas requires diligent research and preparation. By understanding the local market, improving your credit score, comparing rates, and leveraging available resources, you can obtain a mortgage that suits your financial needs and helps you achieve your homeownership dreams.

Texas Real Estate & Mortgage Update

Market Conditions. The Texas real estate market continues to show resilience and growth as we move through 2024. Home prices in Texas have been on a steady upward trend. As of May 2024, the median home price in Texas is approximately $350,000, reflecting a year-over-year increase of around 6%. Major cities like Austin, Dallas, and Houston are seeing even higher price increases due to strong demand and limited inventory. Inventory levels remain tight across much of the state. The current months of supply is hovering around 2.5 months, which is below the 6-month level considered balanced. This low inventory continues to drive competition among buyers. The spring selling season has seen high levels of activity. Homes are spending an average of just 30 days on the market, which is a slight decrease from the previous year. Multiple offers and bidding wars are common, especially in desirable neighborhoods and for homes priced competitively. New construction is ramping up to meet the demand. However, builders are still facing challenges such as labor shortages and rising material costs, which can impact timelines and pricing.

Mortgage Rate Trends. Following a period of historic lows, mortgage rates have shown some volatility over the past few months. This uptick is largely due to the Federal Reserve's efforts to curb inflation through rate hikes, which have subsequently influenced borrowing costs. Higher mortgage rates have cooled some of the frenzied buyer activity observed in previous years, leading to a more balanced market in several regions. The increased cost of borrowing is prompting potential homebuyers to re-evaluate their purchasing plans, with some opting to wait for a dip in rates. Despite these challenges, demand in high-growth areas remains robust, supported by strong job markets and continued migration trends. Refinancing activity has slowed down from the peak levels seen in the previous two years due to the rise in mortgage rates. However, homeowners with older loans or those looking to tap into their home equity are still finding value in refinancing, particularly with cash-out refinance options.

Mortgage Rate Outlook. Experts predict that mortgage rates may stabilize towards the latter half of 2024, depending on economic indicators and Federal Reserve policies. Potential homebuyers are advised to stay informed on rate trends and market conditions, and consider locking in rates where possible to mitigate the risk of future increases. For more information, see our Mortgage Rate Forecast for expert predictions on where rates are headed in 2024 and beyond. 

How TX Mortgage Rates Affect the Local Market

High mortgage rates in Texas affect the local market in many ways for both buyers and sellers. Here are the key effects:

Decreased Affordability

One of the biggest impacts of high mortgage rates is the decrease in affordability for buyers. As rates go up, the cost of borrowing goes up and monthly payments increase. With more of their budget going to interest, buyers can afford less expensive homes than they could at lower rates. Fewer people can qualify for a mortgage or are willing to buy at higher rates. That means fewer home sales.

Slower Housing Market Activity

Mortgage rates have slowed down the market. Home sales have plummeted as buyers are either waiting or getting out of the market altogether. Despite that, home prices in Texas are still high, partly because of the lack of inventory. This combination of high prices and high mortgage rates is tough on buyers. While demand may go down with higher mortgage rates, home prices in Texas aren’t dropping much. That's because inventory is still tight and sellers aren't willing to lower prices much. In some cases, high mortgage rates can even cause a temporary stabilization or slight increase in prices as sellers hold out for better offers.

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Areas of Texas Most Affected by High Mortgage Rates

High mortgage rates in Texas have had varying impacts across different regions. Here are the regions most affected:

Austin

In Austin, high mortgage rates have balanced the market by affecting buyer’s buying power. It's a more stable market where both buyers and sellers are in a tricky situation. The higher cost of borrowing has slowed down the rapid price growth of the past and made the market less competitive but less accessible to some buyers.

Dallas/North Texas

The North Texas area, including Dallas, has been hit hard by high mortgage rates. Inventory is up to a 12 year high and that's affecting home prices. While the increase in inventory has given some relief, high mortgage rates are still making it tough on affordability and home prices are mixed - some areas are down, others are stable.

Houston

Houston's market is transitioning from a seller's market to a more balanced market with increasing inventory and steady prices. Despite the higher mortgage rates, buyer demand is still strong, especially in the luxury segment. With the increased inventory and demand, prices are stabilizing but affordability is a big concern for many buyers.

Smaller Cities

Some of the smaller cities in Texas like Zapata, Dumas, Borger and Levelland are expected to see home prices drop next year. These areas are economically challenged and high mortgage rates make it even tougher, so demand will go down and prices will come down.

Texas Refinance Rates

Owning a home is a fundamental aspect of the American Dream, and many in Texas consider refinancing to better manage their financial situation. Keeping informed of Texas refinance rates is essential, as economic shifts significantly impact the housing market and can influence the timing and benefits of refinancing. Several factors, including the broader economy, government policies, and financial market dynamics, affect refinance rates in Texas.

Key influences on refinance rates include actions by the Federal Reserve, fluctuating inflation rates, and the state of the bond markets, all of which can cause interest rates for refinance loans to vary. This variability impacts how advantageous refinancing might be at different times. For instance, when the Federal Reserve announces changes to interest rate targets, lenders typically adjust their rates accordingly. Likewise, if inflation increases, lenders might raise rates to maintain their profit margins.

Factors Affecting Texas Refinance Rates

Several factors affect refinance rates in Texas. Knowing these factors can help you obtain the lowest refinance rates such as:

• Credit History: A strong credit score can cut your interest rate with lenders. A low score may mean higher rates.
• Loan-to-Value (LTV) Ratios: Your LTV ratio also affects your rate. Having more equity usually means better terms.
• Changing Home Values: Market changes in Texas can influence refinance deals. Rising home prices can offer good opportunities.

Strategies for TX Homeowners Considering Refinancing

For homeowners contemplating refinancing, aligning the decision with your financial goals is crucial. Here are some strategies for Texas homeowners to consider when evaluating refinance rates:

• Assess your financial situation: Ensure that refinancing aligns with your current financial goals and circumstances.
• Examine all costs: Look beyond the advertised interest rates and consider all associated fees to understand the total cost of refinancing.
• Plan for the future: Consider how long you plan to stay in your home since this can influence the cost-effectiveness of refinancing.
• Monitor economic indicators: Stay informed about economic trends that could indicate shifts in interest rates, helping you choose the best time to refinance.
• Rate locks: Consider locking in a rate during periods of favorable rates to maximize potential savings.

Refinancing can help in many ways, like lowering monthly payments, changing loan terms, or getting equity from your property. Increasing Texas refinance rates and mortgage interest rates signal a shift for homeowners. If you're thinking about refinancing, consider how the higher rates balance with gaining from your home's equity. It's about careful thinking and clear calculations when looking at refinancing's value today.

Cash Out Refinance in Texas

Texas homeowners can benefit from a cash out refinance, but the state's unique laws and regulations require special consideration, including:

• Home Equity Laws: Texas has strict laws governing home equity lending, including cash out refinances. These laws limit the amount of equity that can be borrowed and require specific closing procedures. It's crucial to work with a lender who understands these regulations to ensure compliance.
• Competitive Mortgage Rates: Despite the additional regulations, Texas's mortgage market is competitive, with many lenders offering attractive rates for cash out refinances.
• Growing Housing Market: Texas's population and economy have grown significantly in recent years, leading to a strong housing market in many areas. This growth can provide a solid foundation for homeowners considering a cash out refinance.
• Energy Efficiency Improvements: Texas homeowners can use a cash out refinance to fund energy efficiency improvements, such as upgrading to energy-efficient appliances or installing solar panels. These improvements can lead to long-term savings on utility costs.

When considering a cash out refinance in Texas, it's important to work with a cash out refinance lender that can help guide you through the process and ensure that you're making the best decision for your financial future.

TX Mortgage Rates FAQs