Mortgage Refinance Rates in Texas
Texas is one of the biggest mortgage markets in the country. After 17 years helping homeowners across the country refinance, I can tell you Texas has some of the most unique state-specific rules of anywhere in the United States. If you are a Texas homeowner thinking about refinancing, there are a few things you need to know.
Texas Has Unique Refinance Rules
Texas has its own set of laws around cash-out refinancing that are different from other states. These come from the Texas Constitution and are sometimes called the "Texas 50(a)(6) rules."
80 percent loan-to-value limit. In Texas, a cash-out refinance cannot exceed 80 percent of your home's appraised value. This is stricter than most other states.
One cash-out per year. You can only close one cash-out refinance in a 12-month period.
Closing timeline. There is a mandatory 12-day waiting period between your application and closing for cash-out refinances. Rate-and-term refinances do not have this restriction.
No home equity loan stacking. You cannot have more than one home equity loan at a time.
These rules apply specifically to cash-out refinances. A standard rate-and-term refinance in Texas follows the same process as in other states.
What Affects Your Rate in Texas?
The same factors that matter everywhere apply in Texas.
- Your credit score
- Your loan-to-value ratio
- Your property type and location
- Your loan amount
- Whether you choose a fixed or adjustable rate
Texas cities like Dallas, Houston, Austin, and San Antonio have diverse housing markets. Your rate options may vary based on your specific property and loan amount.
Rate-and-Term vs. Cash-Out in Texas
Because of the Texas cash-out rules, many homeowners who want to lower their rate or payment choose a rate-and-term refinance. This type of refinance simply replaces your current loan with a new one at better terms, without pulling cash out.
If you do want cash out, make sure you understand the 80 percent LTV limit and the waiting period requirements.
How to Get Started
Check your rate on our Texas refinance page or get a quick rate quote at Lendtrain. It takes 30 seconds and helps you see what your options look like. If you want more background on the process itself, start with how mortgage refinance works or calculate your refinance break-even point.
Rate quotes are estimates based on the credit score you enter. Actual rates may differ based on verified credit, income, and property details. Lendtrain (NMLS# 1844873) is a licensed mortgage broker. Equal Housing Opportunity.