Texas · Rates
Is my mortgage rate good? The Texas angle
Updated November 2026 · Every dollar figure is an example · Texas rules and limits change, check the current onesA Texas mortgage rate is judged the same way as any other: against this week's national average for the same loan type, with the gap explained by your credit score, your down payment, any points, the loan type and the lock length. There is no separate Texas rate market. What is specific to Texas is that a cash-out refinance here is a constitutional home-equity loan that most lenders price above a plain refinance, that the tax and insurance part of the payment is large and can make a fair rate look expensive, and that the state's buyer programs set their own rates. This page prints no rate on purpose; Rate Watch shows this week's.
Step 1: this week's average
Freddie Mac publishes a national average for the 30-year fixed rate every Thursday. It is the yardstick lenders and news reports use, and it moves every week, which is why no number is printed here. Rate Watch shows the current figure and the last two years. The survey's typical borrower has a strong credit score and a good-sized down payment on a 30-year fixed loan for a home they live in, so treat the average as the price for that borrower, not a ceiling for everyone.
Texas lenders quote from the same wholesale market as lenders everywhere. A rate that is fair in Ohio is fair in Houston. What moves your rate is your file, not your state: Is my mortgage rate good right now? has the full table of what adds to the base price. The rest of this page is only the Texas-specific part.
Texas difference 1: cash-out loans price higher
A cash-out refinance on a Texas homestead is a home-equity loan under Article XVI, Section 50(a)(6) of the state constitution, with a 12-day wait, a 3-day cancel right, a fee cap and a list of other conditions. The investors who buy these loans treat them as their own category, and many lenders add something to the rate for them beyond the usual cash-out adjustment. Some lenders do not make them at all. So a Texas cash-out quote a bit above the weekly average is not, by itself, a sign of a bad deal. A quote well above it still is, and the size of the Texas add-on differs by lender more than most adjustments do, which is exactly why a second Loan Estimate pays on this loan. Texas cash-out refinance rules explains the conditions.
If you do not need cash, make sure you are not being quoted a cash-out loan. A rate-and-term refinance, including the 50(f)(2) refinance out of an old home-equity loan, prices as an ordinary loan.
Texas difference 2: the payment is tax-heavy
Texas property tax rates are among the highest in the country, and Texas homeowner's insurance is expensive in most of the state because of hail and wind. Both ride inside the monthly payment when you escrow, and together they can be a third or more of it. That matters in two ways. The lender's estimate of the total payment on page 1 of the Loan Estimate is dominated by guesses that are not the lender's price, so compare lenders on the rate and Section A, not the total payment. And the lender qualifies you on the whole payment, so the same income supports a smaller loan in Texas than the rate alone would suggest. Texas property taxes and your escrow payment goes through it.
Texas difference 3: program loans set their own rates
The state's two housing agencies, and the Texas Veterans Land Board for veterans, offer loans with down-payment help or a tax credit. Each program sets its own rate, and it can be above or below the market rate for the same borrower on the same day. The help is real; the trade is that you compare the whole package, the rate with the assistance, against a plain loan without it. Texas first-time buyer programs lists them.
What half a percent is worth (illustrative)
A $380,000, 30-year fixed loan. The rates are made up to show the math; today's are on Rate Watch.
| Quote | Rate | Monthly P&I | Difference | Over five years |
|---|---|---|---|---|
| First quote | 6.625% | $2,433 | — | — |
| Second quote | 6.125% | $2,309 | $124/mo less | about $7,440 less |
$2,433 − $2,309 = $124 a month · × 60 months ≈ $7,440
Taxes and insurance are the same on both lines, so they drop out of the comparison. If the second quote carries higher fees for its lower rate, the breakeven point tells you how many months it takes to earn them back.
A quick way to read your quote
- Type the rate, points and Section A from your Loan Estimate into the free Loan Estimate checker. It pulls this week's average in, compares, and nothing you type leaves your browser.
- If the loan is a Texas cash-out, allow for a modest add-on above the average before you worry; if the gap is large, get a second quote.
- Set the tax and insurance lines aside. They are yours whoever lends.
- Check the Rate Lock box on page 1. A quote is not a locked rate, and we do not lock rates; only your lender can.
Questions people ask
Are mortgage rates higher in Texas?
Not as a rule. Texas lenders price from the same national market as everywhere else, and the weekly Freddie Mac average is the right yardstick in Texas. The exception is a cash-out refinance on a homestead, which is a constitutional home-equity loan here and prices above a plain refinance at many lenders.
Why is my Texas cash-out refinance rate higher than the advertised rate?
Advertised rates are usually for a purchase or a plain refinance with a strong file. A Texas cash-out loan carries the state's home-equity conditions, and lenders add to the rate for them, by different amounts. A second Loan Estimate for the same cash-out loan is how you find out whether your lender's add-on is large or small.
Does Texas property tax affect my mortgage rate?
No, the rate is set by your credit, down payment, loan type, points and lock length, not by the tax rate. Property tax affects the monthly payment and how much loan your income qualifies for. When comparing lenders, leave the tax and insurance lines out and compare the rate with Section A.
Where can I see this week's mortgage rate for Texas?
Rate Watch on this site shows the Freddie Mac weekly national average, which is the figure Texas lenders quote against. There is no official Texas-only average. Your own quote will sit above or below it for reasons your Loan Estimate shows.
Only have one Texas quote? That's the problem.
Tell us the rate and the fees you were quoted. We check whether another lender beats it for the same loan, cash-out or not. It is free, there is no credit pull, and nobody calls you. The free Loan Estimate checker reads your quote in your browser first; nothing you type leaves it.
Check my quoteNo current rate is printed on this page; the figures in the table are made up to show the arithmetic. Figures are illustrative and are not a loan offer, approval, commitment to lend, or Loan Estimate. Your actual rates and fees depend on qualification with lenders. comparemyloan does not negotiate with lenders, lock rates, or take loan applications. This page is general information, not legal or tax advice.