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• Mortgage rates in San Antonio are influenced by economic conditions and your personal financial status.
• Fixed-rate mortgages provide you with stable, predictable payments.
• The better your credit score and debt-to-income ratio, the better your mortgage rate.
• First-time homebuyers can take advantage of state and federal assistance programs.
• Knowing the lay of the land in terms of San Antonio’s cost of living is a smart move for your budget.
• Compare offers from various lenders to secure the best mortgage rates.
Introduction to San Antonio Mortgage Interest Rates
For first-time homebuyers in San Antonio, Texas, a grasp of mortgage rates is key. This guide is your ticket to knowing how to snag the best home loan for your unique situation. We’ll delve into the economic indicators you should understand, especially if you’re buying your first home, as well as the borrower-specific factors that sway interest rates.
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
The mortgage rate a lender offers you is the result of a complex interplay between economic indicators and your personal financial situation. The bond market, particularly the 10-year U.S. Treasury Note yield, is a strong predictor of which way rates might move. But the performance of the housing market, broader trends in inflation and unemployment, and the overall state of the economy also play a role. For example, when inflation is on the rise and the economy is strong, you can expect to see higher mortgage rates in Texas. Understanding these factors can help you time your home purchase effectively and make informed decisions.
A lender will also be looking at your personal data, including the following:
• Credit score The higher the score, the lower the rate you’ll likely obtain.
• Down payment Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.
• Debt-to-income (DTI) ratio In general, mortgage lenders like to see 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
Mortgage rates can have a huge impact on how much you end up paying for your property. For example, if you take out a $300,000, 30-year loan at 6.50% interest, you’ll be looking at a monthly payment of $1,896. But if the rate jumps to 7.00%, that payment goes up to $1,996. Over 30 years, that 0.50% rate increase could cost you nearly $36,000 in interest.
See more examples of how rate and term affect total cost for a $300,000 mortgage below.
Interest Rate
Loan Term
Monthly Payment
Total Interest
6.00%
30-year
$1,799
$347,515
6.00%
15-year
$2,532
$155,683
7.00%
30-year
$1,996
$418,527
7.00%
15-year
$2,697
$185,367
San Antonio, Texas Mortgage Rate Trends
Historical U.S. Mortgage Rates
Looking back at historical mortgage rates can provide some context on current mortgage rates. Even though mortgage rates in San Antonio, Texas have risen since the historic lows of 2021, they’re still much lower than they were at their highest, as shown by the graph of more than a half-century of rates.
The chart shows almost 20 years of average rates in Texas, as compared to the national average. Texas rates have tended to be close to the U.S. average, or a bit below. (The Federal Housing Finance Agency stopped tracking state rates in 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
5.04
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 San Antonio, Texas
The type of mortgage loan you opt for in San Antonio will have an impact on your interest rate and thus on your overall costs. These are some of the more common options available to borrowers. Conventional loans (those not backed by the government) generally require a credit score of 620 or higher. Government-backed loans may offer more flexibility.
Fixed-Rate Mortgage
Fixed-rate mortgages are a popular option in San Antonio. They offer the advantage of a consistent interest rate over the life of the loan, which means that your monthly payments will remain the same for 10, 15, 20, 30, or 40 years. You can choose the option that best fits your financial goals and timeline. The shorter the term, the higher the monthly payment will be, but the less interest you’ll pay over the long haul.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) often start with a low introductory rate, which can be a plus if you’re thinking of selling before the introductory period ends. Homeowners have a 5 or 7 year stretch with a rate that doesn’t budge, followed by potential yearly adjustments based on the market. It’s a bit of a gamble, as you could end up with higher payments if rates climb. If you’re considering an ARM in San Antonio, run the numbers to see how future rate hikes might change your monthly payments.
FHA Loan
Loans backed by the Federal Housing Administration (FHA) open doors with their more flexible eligibility criteria. A minimum credit score of 580 is usually all it takes if you want to make a low 3.5% down payment, which is fantastic news for those looking to purchase their first home. And even those with lower credit scores can purchase if they make a 10% down payment. FHA loans are a beacon of hope for those with limited savings or a less-than-perfect credit history.
VA Loan
VA loans are a great option for those who have served, including active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of the most significant benefits of a VA loan is that they typically do not require a down payment, making it easier to become a homeowner. Additionally, VA loans often have lower interest rates than conventional loans. The first step toward a VA loan is to obtain a certificate of eligibility. With that in hand, you can pursue getting approved for a VA loan.
Jumbo Loan
In most U.S. housing markets, and throughout Texas, conventional mortgage loans are capped at $806,500 for a single-family home. But what if you need a mortgage that exceeds this limit? That’s where jumbo loans come in. They’re tailored for these larger investments, albeit with higher interest rates and more stringent qualification criteria, such as a heftier down payment and an excellent credit score. If you’re in San Antonio, Texas, and the allure of a grander home is calling, a jumbo loan could be your answer.
Current mortgage rates by state.
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 Take a Tumble?
Many homebuyers in San Antonio are wondering if they should wait for interest rates to drop before making a purchase. Current forecasts suggest that mortgage rates in San Antonio, and in Texas in general, will remain relatively stable in the near future. As of March 2025, rates are expected to end the year at approximately 6.30%. So for many buyers, it may not make sense to wait — especially if they are relocating, need to leave a rental apartment, or want space for a growing family. Remember that if you buy now, you can always explore the option of a mortgage refinance if rates decline down the line.
San Antonio’s cost of living is fairly affordable — good news for those who are trying to squeeze a new home into their monthly budget. Housing, especially, is not overpriced here as compared to the cost of living in the U.S. as a whole. The median home sale price in San Antonio is $250,000 and has dropped a bit year-over-year, according to Redfin.
The chart below shows how the cost of living in San Antonio stacks up against other Texas metropolitan areas on a scale where 100 equals the U.S. average.
Get Your Best Possible Rate in San Antonio, Texas
To secure a good mortgage rate in San Antonio, focus first on your credit score. Make payments on time, and have a look at your credit report to ensure there are no errors. You should also try to lower your debt-to-income (DTI) ratio, particularly if it is above 36%. Increase your down payment if possible to reduce the loan amount and potentially shave a bit off the interest rate you’ll be offered. Going through the mortgage preapproval process with a lender can help you lock in a budget because it will show you exactly how much the lender feels you are qualified to borrow. Explore different types of mortgages, such as fixed-rate and government-backed loans.
Helpful Tools & Calculators
Online calculators can help you determine what price house you can afford and see how different down payment amounts and mortgage rates affect your spend. Here are three of our favorites.
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 San Antonio
Given that even a half a percentage point can add up to substantial dollars in your pocket over the loan’s lifetime. It’s a smart move to compare interest rates and fees from various lenders before making a decision about a home loan. Don’t just look at interest figures, but consider each loan’s annual percentage rate, or APR, which is a more accurate picture of total cost. Once you’ve found an offer that fits, consider paying a fee to the lender to lock in your rate for up to 90 days.
Down payment assistance programsand other government-sponsored homebuyer assistance can make all the difference when it comes to affording a home in San Antonio. This is especially true for those who qualify as a first-time homebuyer. The Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation are just two of the organizations offering support. The My First Texas Home and My Choice Texas Home programs, both from TDHCA, provide 30-year, low-interest mortgages and up to 5% in down payment assistance. By tapping into resources like these, homebuyers could significantly reduce the financial load of purchasing a home in San Antonio.
Closing Costs in San Antonio
For those purchasing a home in San Antonio, Texas, closing costs typically range from 2% to 5% of the loan value. Several factors play into the final tally, including property value and location. These costs often encompass loan origination, appraisal, and title insurance fees.
The Takeaway
San Antonio’s mortgage landscape is as varied as the city itself, offering plenty of options for those looking to make a home in the area. By keeping an eye on the current mortgage rates in San Antonio and taking the time to explore the various assistance programs available, you can make the mortgage decision that will best serve your financial future, whether you’re a first-time homebuyer or a seasoned pro.
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.
Is it a good time to buy a house in San Antonio, Texas?
Deciding whether to buy a house in San Antonio depends on the housing market, available mortgage rates, and your personal needs. The cost of living in San Antonio remains relatively low, with a median home sale price around $250,000. The market is only somewhat competitive. So if you need to buy and you can find a home you like, the next step is to get your best possible mortgage rate. Shopping around and getting offers from various lenders is a key step in this process.
How do you secure a mortgage rate?
To secure a favorable mortgage rate, you’ll want to start by taking stock of your credit score and financial health. A higher credit score can pave the way for better loan terms and lower mortgage rates. Think about making a larger down payment, which could further reduce your interest rate and even eliminate the need for private mortgage insurance. Next, shop around and compare offers from various lenders — banks, credit unions, and online platforms included. Once you’ve found a rate that speaks to you, ask the lender to lock it in for a set period, typically up to 90 days, to guard against rate hikes during the closing process.
How do mortgage interest rates work?
Mortgage interest rates, expressed as a percentage, reflect the charges that lenders levy for providing a home loan. Rates can be fixed or variable, with fixed rates maintaining their steadiness over the loan’s lifetime and variable rates subject to market fluctuations. To learn how much of each month’s payment is the interest charge vs. the principal owed, a borrower can review the amortization schedule for their loan.
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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.
*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.
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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