Texas Mortgage Rates 2024
Find the best mortgage rates in Texas. Compare current rates for Houston, Dallas, Austin, San Antonio, and Fort Worth with no state income tax benefits.
Texas Housing Market Overview
Average Home Price
Conforming Loan Limit
Market Trend
Texas Market Advantages
Texas offers unique homebuying advantages including no state income tax, diverse economy with energy, tech, and healthcare sectors, business-friendly environment, and generally lower cost of living compared to coastal states. Major cities like Houston, Dallas, and Austin drive strong lending competition.
Current Texas Mortgage Rates
| Loan Type | Interest Rate | APR | Points | Max Loan Amount |
|---|---|---|---|---|
| 30-Year Conventional | 6.75% | 6.85% | 0.25 | $766,550 |
| 15-Year Conventional | 6.125% | 6.2% | 0.125 | $766,550 |
| FHA 30-Year | 6.375% | 6.95% | 0.375 | $498,257 |
| VA 30-Year | 6.25% | 6.42% | 0 | $766,550 |
| Jumbo 30-Year | 6.625% | 6.75% | 0.25 | No limit |
Major Texas Housing Markets
Houston
Popular Areas:
Market Factors:
- Energy industry hub
- No state income tax
- Diverse economy
Dallas
Popular Areas:
Market Factors:
- Corporate headquarters
- Tech corridor growth
- Job market expansion
Austin
Popular Areas:
Market Factors:
- Tech industry boom
- No state income tax
- University of Texas
San Antonio
Popular Areas:
Market Factors:
- Military presence
- Healthcare industry
- Tourism economy
Fort Worth
Popular Areas:
Market Factors:
- Transportation hub
- Aerospace industry
- Business-friendly
El Paso
Popular Areas:
Market Factors:
- Border economy
- Military installations
- Manufacturing
Top Texas Mortgage Lenders
Frost Bank
Specialties:
Key Strengths:
- Texas market knowledge
- Strong local presence
- Community banking approach
Guild Mortgage
Specialties:
Key Strengths:
- Government loan expertise
- Fast processing
- Competitive FHA rates
Prosperity Bank
Specialties:
Key Strengths:
- Local decision making
- Flexible underwriting
- Texas market focus
PrimeLending
Specialties:
Key Strengths:
- Texas headquarters
- Technology platform
- Nationwide reach
Caliber Home Loans
Specialties:
Key Strengths:
- Alternative lending
- Flexible programs
- Quick decisions
Texas Homebuyer Assistance Programs
Texas State Affordable Housing Corporation (TSAHC)
State ProgramProgram Benefits
- Down payment assistance up to 5%
- Below-market interest rates
- Closing cost assistance
Eligibility Requirements
- First-time homebuyers
- Income limits apply
- Primary residence only
My First Texas Home Program
FHA EnhancementProgram Benefits
- 30-year fixed rate loans
- Down payment assistance
- Reduced mortgage insurance
Eligibility Requirements
- First-time buyers
- Income and purchase price limits
- Homebuyer education required
Houston Housing Finance Corporation
Local ProgramProgram Benefits
- Up to $30,000 down payment assistance
- Deferred payment loans
- No monthly payments
Eligibility Requirements
- Houston area residents
- Income restrictions
- Primary residence requirement
Dallas Area Habitat for Humanity
Non-profitProgram Benefits
- Affordable homeownership
- 0% interest mortgages
- Sweat equity program
Eligibility Requirements
- Income qualifications
- Need for housing
- Ability to pay
Texas Veterans Land Board
Veterans ProgramProgram Benefits
- Land loans
- Home loans
- Home improvement loans
- Below market rates
Eligibility Requirements
- Texas veterans
- Qualifying military service
- Residency requirements
Texas Mortgage FAQ
What are current mortgage rates in Texas?
Current 30-year mortgage rates in Texas average around 6.75% for conventional loans, 6.375% for FHA loans, and 6.25% for VA loans as of 2024-12-30. Rates vary by city, with Houston, Dallas, and Austin often having the most competitive options.
Are Texas mortgage rates lower than the national average?
Texas mortgage rates are typically at or slightly below the national average due to competitive lending markets in major metropolitan areas, the state's business-friendly environment, and no state income tax benefit. Cities like Houston, Dallas, and Austin have particularly competitive rates.
What cities in Texas have the best mortgage rates?
Houston, Dallas, Austin, San Antonio, and Fort Worth typically offer the most competitive mortgage rates due to high lending competition and strong local economies. Rural areas may have slightly higher rates but often offer more flexible underwriting terms.
Does Texas offer first-time homebuyer programs?
Yes, Texas offers several first-time homebuyer programs including My First Texas Home program, Texas State Affordable Housing Corporation (TSAHC) assistance, local programs in Houston and Dallas, and Texas Veterans Land Board loans for eligible veterans with below-market rates and down payment assistance.
How do Texas property taxes affect mortgage payments?
Texas has no state income tax but higher property taxes (average 1.69% of home value). This affects your total monthly payment through escrow accounts. However, property tax deductions can offset some costs, and no income tax means more take-home pay for mortgage payments.
Calculate Your Texas Mortgage Payment
Use our mortgage calculator with current Texas rates to estimate your monthly payment with no state income tax benefits.