Texas Mortgage Refinance Calculator 2026 — Break-Even Analysis

Last updated: April 2026 · Source: Zillow, Freddie Mac, Tax Foundation

Quick Answer

Current 30-year mortgage rates in Texas are around 6.90%. Refinancing makes sense if your current rate is 0.75%+ higher and you plan to stay at least 2–3 years. On a $300K loan, dropping from 7.5% to 6.90% saves approximately $122/month.

Texas Housing & Mortgage Data

Median Home Price$315,000
30-Year Fixed Rate6.90%(State average, Apr 2026)
Property Tax Rate1.68%(Effective rate)
Avg HO Insurance$3,500/yr ($292/mo)
Typical Down Payment10% ($31,500)
Median Household Income$66,000/yr

Key Facts for Texas

  • Texas median home price is $315,000 as of 2026
  • 30-year fixed mortgage rates in Texas average 6.90%
  • Property taxes in Texas are 1.68% — above the national average of 1.10%
  • Homeowners insurance averages $3,500/year in Texas
  • A household earning $78,750/year can typically afford the median Texas home

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Frequently Asked Questions — Mortgage Refinance Calculator in Texas

When does it make sense to refinance in Texas?
Refinancing makes sense in Texas when you can reduce your rate by at least 0.75% and you plan to stay in the home long enough to recoup closing costs (typically 2–3 years). Current 30-year rates in Texas are approximately 6.90%. If your current rate is above 7.65%, a refinance analysis is worth running.
What are typical refinance closing costs in Texas?
Refinance closing costs in Texas typically run 2–5% of the loan balance, or $5,670–$14,175 on the Texas median home. These include lender origination fees, appraisal, title search, and prepaid interest. Some lenders offer no-closing-cost refis with a slightly higher rate.
What is the average mortgage payment in Texas?
The average monthly mortgage payment (principal + interest) in Texas is approximately $1,867 for a $283,500 loan at 6.90% over 30 years. Adding property tax ($441/mo) and homeowners insurance ($292/mo) brings total PITI to about $2,600/month.
What credit score do I need for a mortgage in Texas?
Most Texas lenders require a minimum 620 credit score for conventional loans and 580 for FHA loans (with 3.5% down). For the best rates in Texas, aim for 740+. A higher score can reduce your rate by 0.5–1.0%, saving $42,525 over the life of a 30-year loan.
How much down payment is required to buy a home in Texas?
You can buy a home in Texas with as little as 0% down (VA, USDA loans for eligible buyers), 3% down (conventional), or 3.5% down (FHA). On the Texas median home price of $315,000, a 20% down payment is $63,000 and lets you avoid PMI. Texas also has state-level down payment assistance programs for first-time buyers.
What are current mortgage rates in Texas?
Current 30-year fixed mortgage rates in Texas average 6.90% as of April 2026. 15-year fixed rates are typically 0.5–0.75% lower. Rates vary by lender, credit score, and loan-to-value ratio. Compare at least 3–5 lenders to ensure you get the best Texas mortgage rate.
What is the property tax rate in Texas?
Texas's effective property tax rate is 1.68%. On the Texas median home value of $315,000, annual property taxes are approximately $5,292 ($441/month). Property taxes in Texas are typically escrowed in your monthly mortgage payment.