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• Mortgage rates in Amarillo, Texas, are influenced by economic conditions as well as individual financial factors, like your credit history.
• Mortgage rates in Texas may be lower than the national average due to the state’s economic stability and no state income tax.
• A fixed-rate mortgage will offer you consistent monthly payments over the loan’s life.
• Adjustable-rate mortgages (ARMs) have changeable rates that can go up or down before the loan is repaid.
• You can estimate monthly payments and total costs using an online mortgage calculator.
• Texas has resources and programs to make the dream of homeownership a reality for first-time buyers and those with limited financial resources.
Introduction to Amarillo Mortgage Interest Rates
Mortgage rates in Amarillo are going to be a key consideration for anyone looking to buy a home. These rates can really influence how much home you can afford, and what kind of long-term financial planning you need to do. This guide can help you understand exactly how mortgage rates are determined and how you can get the best rate. It will be especially helpful if you’re buying your first home. Step one in the mortgage journey? You need to understand where the rates you’ll find in Amarillo are coming from.
First-time homebuyer programs usually consider anyone who hasn’t owned a home in the previous three years to be a “first-timer.” If you think you might qualify as a first-time homebuyer, you could enjoy special benefits such as lower down payment minimums, grants, and closing cost assistance.
The interest rate any homebuyer obtains for a home loan is influenced by a combination of factors. These include the economy and the borrower’s credit history and overall financial situation. Let’s look at an overview:
Economic Factors Influencing Mortgage Rates
• The bond market. The 10-year U.S. Treasury Note, in particular, has long been considered a primary indicator of where mortgage rates are going. When the note’s rate rises, mortgage interest rates have historically headed in the same direction.
• The health of the housing market. When the housing market cools, more homes are usually available than there are buyers. This plays a role in lenders lowering rates, in order to continue attracting borrowers.
• Inflation and unemployment. These factors also play a role in determining mortgage rates. When the economy is strong, mortgage rates often rise, reflecting the potential for increased borrowing demand and possibly higher costs for lenders who provide consumer loans. Lower mortgage rates often come when lenders respond to a recession.
Borrower Factors Influencing Mortgage Rates
• Your credit score. The state of your credit is a significant predictor of the rate lenders will offer you. The higher your score, the lower the rate you’re likely to get.
• The amount of your down payment. What you’re able to put down plays a role as well. Larger down payments tend to result in lower interest rates, since borrowers who have more equity in their newly purchased property are perceived as a lower default risk by lenders.
• Your debt-to-income (DTI) ratio. This figure is another important one, as lenders unfailingly look at a borrower’s income in relation to their monthly debts. In general, mortgage lenders like you to have a DTI ratio of no more than 36%, though that is not necessarily the maximum.
See how your debt level may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number.
See how your debt level may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number..
How Interest Rates Affect Home Affordability
Even casual househunters should know: Mortgage rates will have a giant impact on your monthly loan payment amount, and thus on how much home you can afford. In general, a $400,000 loan at a 6.00% interest rate with a 30-year term will require a payment of $2,398 per month. But if the rate is 7.00%, your monthly payment will jump to $2,661. During a 30-year term, that percentage point difference in interest rate will cost you almost $100,000 in interest payments. That’s big money.
See how your interest rate and loan term will affect your payment amounts and the total interest you’ll pay on a $300,000 mortgage in this chart.
Interest Rate
Loan Term
Monthly Payment
Total Interest
6.00%
30-year
$1,799
$347,515
6.00%
15-year
$2,532
$155,863
7.00%
30-year
$1,996
$418,527
7.00%
15-year
$2,697
$185,367
Amarillo Mortgage Rate Trends
Looking at historical mortgage rates in Texas and throughout the country can help you get an idea of what the future might hold for Amarillo’s rates.
Historical U.S. Mortgage Rates
Mortgage rates in the U.S. have gone every which way, even in recent history. They always play a pivotal role in the housing market’s ebb and flow. From the 1970s until the 2020s, rates have fluctuated. They’ve reached more than 18.00% and plummeted below 3.00%.
Federal Reserve policy and an ever-changing economic climate have been powerful forces behind these shifts. If you develop an understanding of these factors, you’ll position yourself to make informed decisions when you purchase a home.
Historical Interest Rates in Amarillo
The table shows how Texas rates have compared to the national average in recent decades. As you’ll see, the state rate, while similar to the national rate, generally remains a bit lower. (The Federal Housing Finance Agency stopped compiling this state-level data after 2018.)
Year
Texas Rate
U.S. Rate
2000
8.03
8.14
2001
7.01
7.03
2002
6.61
6.62
2003
5.81
5.83
2004
5.94
5.95
2005
5.98
6.00
2006
6.71
6.60
2007
6.54
6.44
2008
6.15
6.09
2009
5.04
5.06
2010
4.76
4.84
2011
4.52
4.66
2012
3.59
3.74
2013
3.80
3.92
2014
4.08
4.24
2015
3.79
3.91
2016
3.66
3.72
2017
3.98
4.03
2018
4.57
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in Amarillo, Texas
You have a lot of options when looking for the type of mortgage loan that will best help you purchase your home in Amarillo. Understanding your options will help you make informed decisions throughout the process.
Fixed-Rate Mortgage
Fixed-rate mortgages are the what-you-see-is-what-you-get home loan choice. The interest rate they come with remains constant over the life of the loan. This predictability means monthly payments stay the same, and your budget should be fairly easy to plan. A variety of terms are available when you’re looking at a fixed-rate mortgage — 10, 15, 20, 30, or even 40 years.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages, known as ARMs, offer lower interest rates in the beginning compared to fixed-rate loans. They’re popular among owners who believe they’ll sell their home before the initial fixed-rate period ends. With an ARM, you get a steady interest rate for the first part of the loan’s term, but as time passes (say, after 5 or 7 years), that rate can adjust up or down, depending on the market. The flexibility works in a borrower’s favor if rates are falling, but payment amounts may increase if rates rise.
FHA Loan
The Federal Housing Administration (FHA) offers this type of loan. It exists to bring the advantages of homeownership to a broader audience. With an FHA loan, you’ll have more flexible eligibility criteria than with other loan types, including a low down payment option and qualification with a minimum 580 credit score. These loans may be particularly appealing to you if you qualify as a first-time homebuyer in Amarillo.
VA Loan
Veterans Affairs (VA) administration loans are designed for homebuyers who’ve served our country. They are a great opportunity, available to eligible active-duty military personnel, veterans, reservists, National Guard members, and surviving spouses. One benefit of a VA loan is that it doesn’t require you to make a down payment. This means it’s an option even if you don’t have a bundle of cash in savings. VA loans offer competitive rates and will keep the cost of your mortgage down.
Jumbo Loan
In Amarillo, as in most U.S. cities, the 2025 conventional mortgage loan limit for a single-family home purchase is $806,500. If you’re eyeing a property at a price higher than this figure, a jumbo loan will be necessary to finance it. While jumbo loans can come with interest rates that are slightly higher and stricter requirements to qualify, they can help you secure the funds to purchase the home you want.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Should You Wait for Interest Rates to Drop?
Whether or not you hope to qualify as a first-time homoebuyer in Amarillo, you may wonder if you should wait for Texas mortgage rates to drop. Current market predictions indicate that rates will likely remain stable through 2025 and 2026. What should your plan be? The best way to go is to carefully consider how ready you are financially. Assess your savings and your credit score, and spend some time evaluating overall market conditions before you decide if buying now is the right choice.
You should also know that if interest rates drop once you’ve purchased your home, you can still take advantage of lower rates by doing a mortgage refinance.
Cost of Living in Amarillo
The cost of living in Amarillo is relatively affordable, especially compared to big Texas cities like Houston, Dallas, and Austin. This chart shows you how Amarillo compares to other Texas cities on an index where 100 equals the average cost of living in the U.S. Moving to a lower-cost city can save you a lot of money, and is one strategy for buying property if you have a limited budget.
Texas City
Cost of Living
Amarillo
95.7
Austin
97.4
Beaumont
91.8
Corpus Christi
89.2
Dallas
101.7
El Paso
88.1
Houston
94.2
San Antonio
91.2
Wichita Falls
90.5
How to Get Your Best Possible Rate in Amarillo
In 2025’s second quarter, the average mortgage rate in Texas was 6.63% for a 30-year fixed loan and 5.83% for a 15-year fixed loan. To secure the best rate possible in Amarillo, you could work on upping your credit score and reducing your debt-to-income (DTI) ratio. Conventional loans are a common choice and typically require a credit score of 620 or higher; in 2024, the average credit score of approved applicants was 758, according to Experian®, one company that tracks consumer credit scores.
• Improve your credit score by paying off balances on your credit cards and making payments on time.
• Lower your DTI ratio by paying down your debts — don’t let balances sit.
• A higher down payment is a good idea if you can do it. That chunk of change can help you secure a lower interest rate.
• Lenders may want a look at your employment history to make sure you’ve got a steady source of income
• Think about gathering your information and going through the mortgage preapproval process. This will give you a strong idea of what you can afford.
• Also, look into government-backed loan programs. These often have lower interest rates than conventional loans. Keep reading to find out more about those programs.
A mortgage calculator is a great, simple tool to help you understand the impact of different interest rates in Amarillo and how they will affect monthly payments over the life of your loan. These calculators can be quite effective for prospective homebuyers. They take into account the loan amount you’re requesting, the term length of the loan you select, and the interest rate. With that information, the calculator can provide a clear and accurate financial picture that will allow you to make informed decisions.
Here are three of our favorite mortgage calculators:
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Amo payments shown depend on the accuracy of the information provided.
How to Evaluate Loan Offers in Amarillo
It’s a smart financial move to secure a competitive mortgage rate, since even a fraction of a percentage point can add up to substantial overall savings as you pay off your loan. Compare interest rates and fees from multiple lenders to ensure you’re getting the best deal. Pay attention to the annual percentage rate (APR) — it encompasses fees, closing costs, and discount points.
Once you’ve found a loan offer to suit you, think about locking in the rate for up to 90 days, if you’re concerned about potential rate hikes. Lenders usually offer this option for a small fee.
Amarillo Mortgage Resources
Texas is home to quite a few resources and programs designed to assist homebuyers. If you’re buying your first-home or have limited financial means, you may find the support you need to secure an amazing starter home at a great mortgage loan rate. Good news: You could be considered a first-time buyer even if you’ve owned a primary residence, as long as it hasn’t been in the last three years.
The Texas State Affordable Housing Corporation (TSAHC) is a nonprofit organization that helps Texans achieve their dream of homeownership through programs and grants. The Texas Homebuyer Program also offers down payment assistance programs, and assists with closing costs. Take the time to explore these resources, and you can significantly up your chances of securing a favorable mortgage rate in Amarillo.
Closing Costs in Amarillo
If you buy a home in Amarillo, expect to pay between 2% and 5% of your loan amount in closing costs. For a $307,629 home — the average home value in Texas in the second quarter of 2025 — that’s between $6,150 and $15,381.
The amount you will pay depends on a variety of factors, including the price of the home and its location. Common closing costs in Amarillo may include loan origination fees, appraisal fees, credit report fees, title insurance premiums, and property taxes.
Title search and title insurance fees are other line items likely to come up. A title search is a check of whether there are any other claims on the property, and buyers typically pay the fee for this — usually in the $75 to $200 range. Lenders may require title insurance protection as a one-time fee costing 0.1% to 2% of the home’s sale price.
As you figure out your budget for closing expenses, you may also want to think about reserving funds for mortgage points. (Each mortgage point you choose to buy costs 1% of the mortgage amount and generally lowers your mortgage interest rate by 0.25% per point.)
Understanding each of these costs and shopping around for the best rates on a mortgage can help you save money on your home purchase.
The Takeaway
Amarillo’s mortgage landscape is as diverse as the city itself, offering a wealth of options for those looking to become homebuyers. Staying informed about current mortgage rates in Amarillo and exploring available assistance programs are important tasks for prospective buyers. Whether you’re a first-time buyer or a seasoned homeowner, taking advantage of all available resources can make the process smoother and more affordable.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
Shopping around and comparing offers from multiple mortgage lenders will help you zero in on the best available rates. After you’ve selected a lender, ask them if you have an option to lock in your rate: Rate locks typically last 30 to 60 days and carry a cost somewhere between 0.25% and 0.50% of the loan amount.
How do mortgage interest rates work?
Mortgage interest rates are advertised as a percentage, which tells you what it’s going to cost you to borrow money to purchase a home. Economic conditions affect rates, but so does your personal financial history. Fixed-rate mortgages come with rates that stay stable, while adjustable-rate mortgages, often referred to as ARMs, have rates that can change. Every homebuyer needs to understand mortgage rate basics, since even a small change can cost or save you thousands of dollars over the life of a 30-year loan.
Will mortgage rates drop in Amarillo?
Economists predict that mortgage rates in Amarillo will remain stable into 2026, but no one can guarantee that. Keeping an eye on economic factors like inflation and Treasury bond prices will help you anticipate as a homebuyer where mortgage rates may be headed, and how you can best ride any waves ahead. What’s even more important is to weigh your own personal financial readiness and credit situation, and work to improve your credit score if necessary.
Is it the right time to buy in Amarillo?
If you’re considering your first home purchase in Amarillo, Texas, the market offers tons of opportunity. The average home value in Amarillo was $202,997 in the second quarter of 2025. Competitive mortgage rates seem to be holding steady, so now may be the time to make a sound financial investment. The lack of state income tax and the relatively low cost of living in Texas both sweeten the deal.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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