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.

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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.

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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

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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.

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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


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