Texas Refinance Calculator

Consider refinancing in Texas when current rates are at least 0.5-1% lower than your rate, your credit score has improved significantly, you want to switch from an ARM to a fixed-rate mortgage, or you want to tap into home equity. With Texas's median home price of $315,000, even a 0.5% rate reduction on a typical $252,000 loan can save you $84 per month. Calculate your break-even point to ensure savings outweigh closing costs.

Refinancing costs in Texas typically run about 3% of your loan amount — roughly $7,560 on a $252,000 loan (based on 80% of the $315,000 median home price). This includes appraisal fees, title insurance, origination fees, and Texas-specific costs. Tax note: With no state income tax in Texas, the federal mortgage interest deduction is your only tax benefit — but Texas's high property taxes make overall housing costs significant, making rate reduction through refinancing especially impactful. Some lenders offer no-closing-cost refinances with slightly higher rates.

Cash-out refinancing in Texas lets you replace your mortgage with a larger loan and receive the difference in cash. You can typically borrow up to 80% of your home's value (Texas constitutional law strictly enforces this 80% LTV limit on home equity refinances under Section 50(a)(6)). With Texas's median home price at $315,000, that could mean up to $252,000 in total loan value. This money can be used for home improvements, debt consolidation, or other expenses.

Texas's property tax rate of 1.8% means you're paying approximately $5,670 per year ($473/month) in property taxes on a $315,000 home. This high tax burden makes reducing your interest rate through refinancing even more impactful for managing your total monthly housing costs.