Updated: January 9, 2025
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The current mortgage refinance rates in Texas show that the average rate for a 30-year fixed mortgage refinance is 6.56%, while the 15-year fixed rate stands at 5.94%. In comparison, the national average refinance rates are higher at 7.08% and 6.12%, respectively.
We provide comprehensive insights into refinancing your mortgage in Texas, covering current rates and trends, practical tips on refinancing timing and strategies based on credit scores and loan types.
MoneyGeek used Zillow data for the rates on this page. Because mortgage rates shift daily, we use a snapshot to analyze rate information for Texas. We update the data frequently to ensure you have access to the most recent rates, but the values may differ slightly between reporting sources. Unless noted otherwise, featured rates are annual percentage rates (APRs).
This data was last updated in December 2024.
The current 30-year refinance rate in Texas is 6.56%. According to Experian, the average mortgage debt in Texas is $230,940 as of September 2023. Refinancing your mortgage could be a smart way to manage this debt by potentially lowering your monthly payments and the total interest paid over the life of the loan.
Refinancing could save you thousands if your current mortgage rate is higher than 6.56%. Explore the current refinance rates in Texas to see if refinancing makes sense for your financial situation.
| 15-Year Fixed | 5.83% | 5.94% |
| 30-Year Fixed | 6.49% | 6.56% |
In the latest month, 15-year and 30-year refinance rates in Texas decreased. Texas homeowners who are considering refinancing their mortgages might benefit from the current lower rates. This pattern also aligns with the broader trends observed in similar markets.
Interest rates can rise due to various factors, such as the US Federal Reserve's monetary policy, inflation and employment rates. These elements, along with local conditions, also influence refinance rate trends in Texas. Understanding these dynamics helps you anticipate changes in your financial landscape.
Refinancing your mortgage in Texas can unlock opportunities for lower payments or better terms. This guide will walk you through the steps needed to make informed decisions, considering unique state regulations and your financial goals.
Credit scores affect qualifying rates; higher scores often mean better rates. If your score is below 695, consider paying debts or disputing errors. Texas's average score is 695, so aim to improve if needed.
Compare your current mortgage terms with current rates: 6.56% for 30-year and 5.94% for 15-year fixed loans in Texas. If the rates are lower, refinancing might be beneficial. Consider your homestay duration to ensure cost-effectiveness.
Prepare for refinancing by collecting documents like tax returns, pay stubs and bank statements. This simplifies the process and ensures accuracy when reviewing your original mortgage terms.
Explore and compare different lenders to find competitive rates, favorable terms and excellent customer service for your refinancing needs.
Be aware of closing costs, appraisal fees and other expenses. According to the National Association of Realtors, Texas's average closing costs are $5,259, so budget accordingly.
Submit your application to your chosen lender. Ensure all information is accurate to avoid delays. Organizing documents beforehand can streamline this step and increase your chances of approval.
Secure your rate through a mortgage rate lock to protect against market fluctuations. Strategically timing your lock can save money over the loan's term.
Finalize the refinancing process by signing necessary documents and paying closing fees. Reviewing all paperwork can help ensure a smooth closing experience.
Begin payments as scheduled to avoid penalties. Setting up automatic payments can help manage finances and ensure timely payments.
Periodically assess market rates and your financial situation to determine if refinancing again could be beneficial. Staying informed can help you seize future opportunities.
How soon you can refinance a mortgage in Texas depends on your loan type. For conventional loans, you can refinance immediately, but a cash-out refinance usually requires a six-month seasoning period. USDA loans require a 12-month waiting period, especially if you want to adjust your interest rate or loan terms.
From July to September, the refinance rate in Texas has continuously decreased, which is a good example of when to refinance. However, refinancing comes with additional closing costs that can take years to recover. While you could consider how soon you can refinance within a year, it's often not worth it unless there's a significant drop in interest rates.
Refinancing your mortgage in Texas can reduce your monthly payments by lowering interest rates. But watch out for closing costs that might negate these savings. Knowing when to refinance a mortgage in Texas ensures you maximize financial benefits. Let's delve into situations where refinancing could be a wise decision.
Refinancing when interest rates are lower can reduce monthly payments and overall interest costs. To find the best rates, consult local lenders with competitive terms. This strategy can lead to significant savings over the life of the loan.
Refinancing when your home's value increases can enhance home equity. Upgrading your home with renovations can boost its value. With Texas's average home value at $306,841, this can lead to better refinancing terms.
A better credit score can qualify you for lower interest rates. Paying bills on time and reducing debt can improve your score. This can result in more favorable refinancing options, reducing your mortgage costs.
Refinancing to a shorter loan term can save on interest and pay off your mortgage faster. Benefits include reduced total interest paid and quicker equity buildup.
Switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage can provide financial stability. A fixed-rate mortgage has predictable payments, protecting you from future rate hikes and easing long-term budgeting.
Use MoneyGeek's free mortgage refinance calculator to help determine whether refinancing is beneficial for your situation.
Make sure refinancing your existing home loan will save you money.
Total Savings:
By refinancing, you’ll pay $0
Your credit score can impact the rates you qualify for in Texas. For example, the current average refinance rate in Texas for a 30-year fixed loan with a loan-to-value ratio of 80% or lower is 6.95% for scores between 680 and 740, compared to 6.56% for scores above 740. Explore the table below for more details.
| 5.95% | 6.26% |
Loan type is another factor affecting the rates you qualify for in Texas. For example, the current average refinance rates in Texas are 6.56% for a conventional 30-year fixed loan and 7.80% for a 30-year FHA loan. The table below shows average APRs for various loan types in Texas.
| 5.65% | 5.82% |
This section addresses the most common inquiries homeowners in Texas have about refinance rates, providing clear and straightforward information to help them understand their options.
Refinancing your mortgage could be smart if it leads to lower monthly payments or a shorter loan term. However, consider the costs and whether the long-term savings justify these expenses.
To secure the best refinance rate, improve your credit score and maintain a low debt-to-income ratio. Additionally, paying down your mortgage can enhance your eligibility for better rates.
Pros of refinancing include potential savings on interest and reduced monthly payments, while cons may involve closing costs and the risk of extending your loan term. Weigh these factors carefully to determine if refinancing aligns with your financial goals.
Refinancing a mortgage typically costs between 2% and 5% of the loan amount. These costs can include application fees, appraisal fees and closing costs, which should be considered when calculating potential savings.
The current average refinance rates in Texas are 5.94% for a 15-year fixed loan and 6.56% for a 30-year fixed loan. Rates in Houston are likely to mirror these state averages, but individual rates may vary based on factors such as credit score and loan-to-value ratio.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
