Refinance rates in TexasThere are many home refinance options, and each comes with slightly different features and rates.
Current 30 year-fixed mortgage refinance rates are averaging: 7.31%
The current average rate for a 15-year fixed mortgage refinance is: 6.76%
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast for 2024?The current mortgage rates forecast is for rates to remain relatively high, likely between 6% and 7%. However, our market expert notes that rates could fall below 6% nearer to the end of the year.
Dropping rates alone can’t solve the current home affordability crisis, but they will help. Any reprieve from the sky-high rates we saw throughout 2023 will also be an opportunity for the housing market to bounce back.
If you’re on the hunt for the best mortgage rates in Texas, the first thing you need to do is separate the factors determining mortgage rates into two groups: the ones you can control and the ones you can’t. Once you know which factors to target, you can take action.
Here are a few tips to get you started on the path to securing the lowest rates:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?If you have a loan offer in hand that you feel good about, it’s time to start thinking about a mortgage rate lock. Lenders will “lock in” your rate if you request it, which ensures that you won’t see any changes to your rate as you move toward closing. The rate you lock in is a rate you can count on, even if rates suddenly shoot up.
The Home Sweet Texas program is run by the nonprofit Texas State Affordable Housing Corporation (TSAHC), offering both fixed-rate mortgages and down payment assistance. First-time homebuyers can also qualify for a mortgage tax credit through TSAHC, but you don’t have to be a first-time homebuyer to get a mortgage or down payment assistance. Further, you will have to utilize down payment assistance to obtain a mortgage tax credit.
Who qualifiesBorrowers must:
Have a minimum 620 credit score
Have annual income within the program limits, which vary by county. You can use a tool on TSAHC’s website to find out what the limit is for your area.
Purchase a home within the program’s price limits, which vary by location
Use an approved TSAHC lender
Take a homebuyer education course
If you’re a Texas first-time homebuyer or a veteran, this program can help you cover down payment and closing costs. It offers funds up to 5% of the mortgage loan amount, in the form of a 30-year, interest-free second mortgage. However, there’s also an option for a 3-year second mortgage that’s forgivable, meaning you won’t have to repay the money as long as you stay in the home for at least three years. Mortgage credit certificates are also available and can be combined with the other funds.
Who qualifiesBorrowers must:
Be a first-time homebuyer or veteran
Have a minimum 620 credit score
Earn within annual income limits
Purchase a home within the program’s price limits
Use an approved lender
Who qualifies as a first-time homebuyer?Borrowers must be:
People who have never owned a home
People who haven’t owned real estate in the last three years
The Veterans Land Board (VLB) is a great resource for Texans who have served in the military and want to purchase a home and land separately. Maybe you have the perfect piece of land picked out, or perhaps you’ll know it when you see it — either way, as long as you’re a qualified military borrower, this program can help you purchase land in Texas with funding up to $150,000.
Who qualifiesBorrowers must:
Be a legal resident of Texas
Have a qualifying military record
Make at least a 5% down payment
→ Texas conventional loans. Conventional loans are a traditional choice for homebuyers, especially those with decent credit. Conventional loan requirements (including minimum credit scores) are set, in most cases, by Fannie Mae and Freddie Mac.
→ Texas FHA loans. FHA loan requirements aren’t nearly as strict, especially when it comes to credit scores. Borrowers with credit scores as low as 500 can qualify, though they’ll have to make a 10% down payment. Borrowers with at least a 580 score can put down as little as 3.5%.
→ Texas VA loans. VA loan requirements are the most flexible of all, but you’ll have to be a qualified military borrower to take advantage of them. Most VA loan borrowers don’t have to put any money down in order to purchase a home.
→ Texas streamline refinances come in two flavors: FHA streamline refinance loans and VA interest rate reduction refinance loans (IRRRLs). They’re a faster and simpler way to refinance, but you have to be refinancing an FHA or VA loan, and you have to stay with the same program for your new home loan.
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