You are now leaving the SoFi website and entering a third-party website. SoFi has no control over the content, products or services offered nor the security or privacy of information transmitted to others via their website. We recommend that you review the privacy policy of the site you are entering. SoFi does not guarantee or endorse the products, information or recommendations provided in any third party website.
• Mortgage rates are influenced by economic conditions and the borrower’s personal financial situation.
• To improve your odds of getting a good mortgage rate, you can focus on strengthening your credit score, paying down debt, and building a hefty down payment.
• Adjustable-rate mortgages (ARMs) have interest rates that change over time, while fixed-rate mortgages have the same rate through the life of the loan.
• There are resources in Texas available to first-time homebuyers, repeat buyers, veterans, civil servants, as well as others.
• Online mortgage calculators can help you figure out and compare the financial implications of different loans.
Introduction to Plano Mortgage Interest Rates
If you’re interested in buying a home in Plano, Texas, you’ve probably been thinking a lot about mortgage rates in Plano. Mortgage interest rates are based on a complex interplay between broad economic indicators and the borrower’s personal financial situation, which lenders review when you apply for a mortgage. This guide will help you understand both kinds of factors and show you how to get the best rate you can. Whether you’re a first-time homebuyer or a seasoned property owner, understanding mortgage rates is crucial for making sound financial decisions about your home and future investments.
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.
Where Mortgage Rates Come From
Mortgage rates in Plano, TX are influenced by a variety of economic factors, and anyone looking to purchase property should be aware of what those are. The bond market, especially the 10-year U.S. Treasury Note, is a key indicator of where mortgage rates are headed. When it’s on the rise, you can expect mortgage rates to follow. The housing market’s performance, inflation, and unemployment levels also impact mortgage rates. When the economy is strong, rates tend to rise; when the economy is cooling, rates tend to fall.
Mortgage rates are also personalized for you, based on your finances and credit history. The rates lenders offer you are influenced especially by your credit score. The higher your score, the lower the rate you’re likely to get. Making a larger down payment may also decrease your rate, since lenders tend to assume that if you have more equity in your home, you will be less likely to default on your mortgage.
Finally, lenders also consider your debt-to-income (DTI) ratio when they’re determining your interest rate. They generally like to see a DTI ratio of no more than 36%, though that’s not necessarily the absolute maximum.
By understanding what causes rates to increase and decrease, you can put yourself in a better position to time your home purchase strategically.
How Interest Rates Affect Home Affordability
To emphasize how much mortgage rates matter, let’s look at the real-world impact your rate can have on your finances.
Imagine you have a $400,000 loan at a 6.50% interest rate. That translates to a monthly payment of $2,528. But nudge that rate up to 7.00%, and suddenly you’re looking at $2,661 a month.
To put it another way, over the life of your home loan, that seemingly small 0.50% difference means that with the lower rate, you’d be saving nearly $48,000 in interest payments.
These minor rate variations are more than just numbers — they could be the difference between the house you want and the house you can afford.
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..
Plano, Texas Mortgage Rate Trends
Historical U.S. Mortgage Rates
If you’re looking for the best mortgage rate in Plano, it can be useful to get some historical perspective on rates in the area.
The 50-year interest rate graph below shows where highs and lows have ranged over the last half-century. You’ll see that rates have fluctuated significantly during the past two decades. While they have clearly risen from the historic lows of 2021, they remain well below historic highs.
For more localized information, the chart below the graph compares Texas’s average yearly interest rate with the national average in recent decades. (The Federal Housing Finance Agency stopped compiling this data after 2018.) You’ll observe that rates in Texas have mirrored national rates closely.
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
Wondering If You Should Wait for Interest Rates to Dip?
If you’re contemplating a home purchase in Plano, you might be mulling over whether to wait for interest rates to drop.
As we’ve seen, interest rates are influenced by many factors, so predictions aren’t perfect. However, in early 2025, Fannie Mae forecasts suggested that mortgage rates would hold more or less steady, with an average rate of 6.30% by the year’s close. Fannie Mae’s outlook for 2026 also points to rates that don’t veer too far from what we’re seeing now.
While biding your time for a potential rate cut could eventually save you some cash, it’s worth weighing the benefits of seizing the moment. And remember that if you buy a house and interest rates drop, you can always look into a mortgage refinance.
How Costs Stack Up in Plano, Texas
The cost of living in your city can be a big factor as you plan your finances. After all, cost of living affects both home prices and how easily you’ll be able to afford your monthly mortgage payments.
Here’s how Plano compares to other towns in Texas when it comes to cost of living. The chart below uses an index where 100 equals the average cost of living in the U.S.
There’s a lot you can do to position yourself to get the best mortgage rate in Plano that you can. Consider the following smart moves.
• Strengthen your credit score by making payments on time and paying down your credit card balances.
• Lower your DTI ratio by working to pay off your debts.
• Make a larger down payment if you can, using savings and gifts from friends and family.
• Think about going through the mortgage preapproval process. This can give you a clearer sense of what’s affordable.
It’s also worthwhile to explore different types of mortgages, like adjustable-rate mortgages (ARMs) and government-backed loans, which may offer lower rates.
Tools & Calculators
A mortgage payment calculator is a great resource to help you estimate your monthly mortgage payments. Input the home price, loan term, your down payment, and the interest rate to see how the different elements affect your monthly payment. Being able to see quickly and clearly how affordable the house you want is with different loans is an invaluable aid to making the best mortgage decision.
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.
Types of Mortgages Available in Plano
In Plano, Texas, you’ve got many types of mortgage loans to evaluate in terms of your unique financial needs. For conventional loans, lenders typically look for a credit score of 620 or higher and a substantial down payment. These loans often have competitive rates and a smorgasbord of flexible repayment terms. But don’t worry if a conventional loan doesn’t seem right for you: There are FHA and VA loans that have lower down payment requirements and a more forgiving stance on credit scores.
Fixed-Rate Mortgages
Fixed-rate mortgages are a popular choice among homebuyers in Plano. They offer the security of knowing that your interest rate will remain the same for the life of your loan, which means your monthly payments will always be predictable. Fixed-rate mortgages are available for a variety of terms, the most typical being 15 and 30 years, so you can choose the timeline that works best for your financial situation. If you plan to stay in your home for the long term, a fixed-rate mortgage can provide protection against the possibility of rising mortgage rates, making it easier to budget for the future and plan for the years ahead.
Adjustable-Rate Mortgages (ARMs)
Adjustable-rate mortgages (ARMs) often start with a lower interest rate than fixed-rate loans offer. They generally provide this low initial fixed rate for a set period, such as 5 or 7 years. After that, the rate can adjust based on market conditions. This feature may be advantageous for those with shorter time horizons in the Plano area or who expect to refinance their mortgage. But for people who decide to stay in their home beyond that initial period, it’s important to be aware that rates may well adjust upward so their monthly payments will change.
FHA Loans
With the backing of the Federal Housing Administration, FHA loans are often more accessible than conventional loans. With a minimum credit score of 580, you could be looking at a down payment as low as 3.5%. That’s good news for many first-time homebuyers who might be concerned about their credit history. Just bear in mind that FHA loans do require you to pay a mortgage insurance premium (MIP).
VA Loans
VA loans are a worthwhile option for people who have served in the military, including active-duty members, veterans, reservists, National Guard members, and some surviving spouses. One of the most significant benefits of a VA loan is the opportunity to purchase your home with no down payment. This can be a game changer for those who may not have a large amount of savings. VA loans also typically come with lower interest rates and don’t require private mortgage insurance (PMI).
Jumbo Loans
In most regions, including in Plano, the 2025 limit for a single-family home is $806,500. Jumbo loans, designed for high-value properties that exceed this limit, often come with more stringent qualification requirements. These specialized loans typically require a higher credit score and a larger down payment than conventional loans. Exploring a variety of mortgage lenders can help you find competitive jumbo loan options that fit your budget and overall financial situation.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
How to Evaluate Loan Offers in Plano
A competitive mortgage rate can be your ticket to long-term savings. As we’ve seen, even half a percentage point can add up to a substantial sum over the life of your loan. Here are some smart steps to take as you consider loan offers.
• Be sure to compare rates and fees from multiple lenders.
• Review each loan’s annual percentage rate (APR), which includes fees, closing costs, and mortgage points, to give you a more complete picture of your loan costs.
• If you’re worried about rates going up while you negotiate your closing, many lenders will let you pay a fee to lock in your rate for up to 90 days.
There are multiple resources and programs available in Plano to help you buy a house, especially if you’re buying yhour first home or have limited financial resources.
The Texas Department of Housing and Community Affairs (TDHCA) provides the My First Texas Home (for which you can only qualify as a first-time homebuyer or a veteran) and My Choice Texas Home programs, which offer 30-year, low-interest mortgages and up to 5% in down payment assistance.
The Texas State Affordable Housing Corporation offers the Home Sweet Texas Home Loan Program and the Homes for Texas Heroes Program, extending similar benefits and down payment assitance programs to a wide range of buyers, including veterans and public service professionals.
Closing Costs in Plano
If you’re buying a home in Plano, Texas, you can expect to pay between 2% and 5% of the loan amount in closing costs. The exact amount will depend on the price of the home and its location. Common costs include loan origination fees, appraisal fees, and title insurance.
In Plano, the average cost of a house is $521,000. For a loan that size, closing costs would likely run between $10,420 and $26,050. To keep these costs in check, be sure to shop around and compare loan estimates from different lenders. It can also be a good idea to negotiate with your lender to get the best deal.
The Takeaway
Plano, Texas offers a wide array of mortgage options for potential homebuyers. By keeping yourself informed about current mortgage rates in Plano, Texas and the various assistance programs available, you can make the right decisions to meet your financial goals and become a homeowner. No matter what your level of home-buying experience, understanding the different types of mortgages and resources available to you can help you find the best deal.
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.
The mortgage rates you’re offered are influenced by the economy and by your personal financial situation. The bond market, housing demand, and inflation can all affect rates. Additionally, your credit score, down payment amount, and debt-to-income ratio (DTI) are all considered by lenders when determining what rate to give you.
Will mortgage rates drop in Plano, Texas?
It’s tough to pinpoint the exact trajectory of mortgage rates, but it may be helpful to learn that the prevailing sentiment is that mortgage rates will remain higher for longer. Consulting a real estate agent or mortgage broker can help you lock in a rate at the right time.
Will mortgage rates ever go back to normal?
While we may not see the record low mortgage rates of the Covid-19 pandemic again anytime soon, rates are now at historically moderate levels. Fannie Mae predicted early in 2025 that at the end of the year rates will likely be 6.30% and that 2026 will close with rates of about 6.20%.
How do you lock in a mortgage rate?
After you’ve decided on a loan offer at an interest rate you like, you can ask the lender to lock your rate. A rate lock guarantees the rate you’ve agreed on for a set period, typically 30 to 60 days. The lock is sometimes free but often costs between 0.25% and 0.50% of your loan amount.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
*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.
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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
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.
SOHL-Q225-114
