Compare mortgage rates in Houston.

Introduction to Houston Mortgage Interest Rates

Where Mortgage Rates Come From

The interest rate any homebuyer will pay on the money they borrow through a home loan is influenced by an array of factors. These include the economy as well as the borrower’s credit history and overall financial situation. Let’s break it down:

The home mortgage loan you choose, both type and term, will also impact your interest rate. We’ll discuss that in more detail as you read on.

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 in Houston will have a big impact on your monthly loan payment amount, and for that reason, on how much you can afford to spend on a home. A $400,000 loan, for example, that has a 6.00% interest rate and a 30-year term, requires a payment of $2,398 monthly. If the rate increases to 7.00%, the payment will jump to $2,661 monthly. In 30 years, that one percentage point difference in interest rates will cost you almost $100,000 in interest. That’s a lot of money! You can see just how your interest rate and the term of your loan affect your payment amounts and the total interest you’ll pay on a $300,000 mortgage in the chart below.

Houston, Texas 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 Houston’s rates.

Types of Mortgages Available in Houston, Texas

A lot of options exist for you when you look at the types of mortgage loans that can help you purchase your home in Houston. Understanding all the options may help you make educated decisions as you proceed through the process.

Should You Wait for Interest Rates to Drop?

Whether or not you qualify as a first-time homebuyerr in Houston, you may wonder if you should wait for mortgage rates in Texas to drop. According to current market predictions, rates will likely stay stable through 2025 and 2026. What is the best plan for you? Most likely, to start by carefully considering how ready you are financially. Assess your savings and your credit score, and evaluate overall market conditions; then decide if buying now is the right choice.

One thing every potential homebuyer should know: If interest rates drop after you’ve purchased a home, you can still pursue a mortgage refinance and take advantage of lower rates.

See How Houston’s Costs Stack Up

The cost of living in Houston is higher than other cities in Texas, but still relatively affordable compared to other big cities in the U.S. Houston has a yearly average personal consumption cost of $52,299. This means it costs around $4,358 each month for one person to live there.

The chart shows you how Houston compares to other Texas cities on an index where 100 equals the average cost of living in the U.S.

How to Get Your Best Possible Rate in Houston

To secure the best rate possible in Houston, you should make an effort to up your credit score and reduce your debt-to-income (DTI) ratio. Conventional loans are a common choice. They typically require a credit score of 620 or higher, but 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 making payments on time and paying down balances on your credit cards.

•   Lower your DTI ratio by paying off debts — don’t let balances sit there.

•   A higher down payment is a good idea if you can pull together the cash. That chunk of change will most likely help you secure a lower interest rate.

•   Lenders may want to make sure you’ve got a steady source of income by looking at your employment history.

•   Gather your information and go through the mortgage preapproval process. This can give you a reliable idea of what you can really afford.

•   Also, look at government-backed loan programs, which often have lower interest rates than conventional mortgage loans. Read on to find out more about the programs.

Recommended: Average Monthly Expenses for One Person

Tools & Calculators

A mortgage calculator is a helpful and easy-to-use tool that will let you understand the impact of different interest rates on your loan in Houston. It will tell you how your rate will affect monthly payments over the run of your loan. These calculators take into account the loan amount you request, the term length, and the interest rate of the loan you select, providing a clear and accurate financial picture that will help you make the smartest decisions for you.

Here are three mortgage calculators we like:

How to Evaluate Loan Offers in Houston

Securing a competitive mortgage rate is a smart move. It can save you a substantial amount over the lifetime of the loan. It’s not only about the interest rate, though. You need to factor in fees, closing costs, and discount points. Once you find a loan offer that feels right, if you’ve gone through the mortgage preapproval process, you are ready to make a bid. You just need to find a home you love.

Houston Mortgage Resources

Texas is home to many resources and programs created to assist homebuyers. If you are buying your first home or if you have limited financial means, you may find the support needed to secure a perfect starter home at a great mortgage rate. You could even be considered a first-time buyer even if you’ve already owned a primary residence, as long as you sold it more than three years ago.

The Texas State Affordable Housing Corporation (TSAHC) nonprofit helps Texans achieve their homeownership dreams through programs and grants. The Texas Homebuyer Program offers down payment assistance programs, too, and assists with closing costs. Take time to explore these and other resources. You can up your chances of securing a favorable mortgage rate in Houston.

Recommended: The Best Affordable Places in the U.S.

Closing Costs in Houston

If you’re looking for a home in Houston, you’re probably wondering about the closing costs you’ll need to pay. You can typically expect to pay somewhere between 2% and 5% of the final purchase price when buying a home. These costs will vary depending on the value of the property and its location in the city. They typically cover these items:

•   Abstract and recording fees related to summarizing the title search.

•   Application fee. Your lender will most likely charge you this to process your loan application.

•   Appraisal and survey fees. Usually in the $300 to $600 range, these could be considerably higher, depending on the home, its location, and other variables.

•   Credit reporting, underwriting, and origination fees may add up to anywhere from $10 to $100 per applicant. Lenders often charge to check your credit score and underwrite fees (often in the $300 to $750 range), and add those charges to closing costs. Origination fees might be 0.5% to 1% of your loan’s value; they cover the costs of the lender creating loan documents.

•   Flood certification fee. The lender may require a flood certification stating the flood zone status of the property.

•   Title search and title insurance fees: When a title search is conducted to see if any claims on the property in question exist, the buyer typically covers the fee. It’s usually in the $75 to $200 range. Lenders often require title insurance as a protection. This will likely be a one-time fee costing between 0.1% and 2% of the sale price.

As you budget for closing expenses, you might also think about reserving funds for mortgage points. (Mortgage points, which you choose to buy, cost 1% of your mortgage amount per point, and they typically lower your mortgage interest rate by 0.25% per point.)

The Takeaway

Houston’s mortgage landscape is as diverse as this giant Texas city itself, offering a wide variety of options for you if you’re looking to become a homebuyer. Staying informed about current mortgage rates in Houston and investigating assistance programs are important steps for prospective buyers before you take the plunge. Whether it’s your first time as a buyer or you are an experienced homeowner, take advantage of resources you find and the process will be easier and more affordable.

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FAQ

How do you lock in a mortgage rate?

Shop around and compare offers from multiple mortgage lenders. Zero in on the very best rates. Once you have selected a lender, ask how you can lock in your rate: Rate locks will typically last 30 to 60 days — they are sometimes free, but they often carry a cost that might be between 0.25% and 0.50% of the loan amount.

How do mortgage interest rates work?

Mortgage interest rates are advertised as a percentage, and they basically tell you what it will cost you to borrow the money to purchase a home. Rates are affected by economic conditions, as well as your personal financial history. Fixed-rate mortgages carry stable rates, while adjustable-rate mortgages, known as ARMs, have changing rates. It’s helpful for homebuyers to understand the basics of mortgage rates. Even small rate changes can cost or save you thousands of dollars over a 30-year loan’s life.

Will mortgage rates drop in Houston?

Economists are predicting that mortgage rates in Houston should remain stable into 2026, but no one can guarantee where they will go. Keeping your eye on economic factors such as inflation and the price of Treasury bonds will help you anticipate where rates may be headed. What’s more important than that, however, is to weigh your personal financial readiness as well as your credit situation.

Will Houston home prices go down?

The Houston housing market is influenced by a wide variety of factors, including the state of the economy, both locally and nationally. Supply and demand are also key in a home market. While it is hard to predict the exact direction home prices will go, especially when market volatility increases, a real estate agent with local knowledge can help identify the most important points and figures to consider.

Compare mortgage rates in Cincinnati, CA.

Introduction to Mortgage Refinance Rates

Where Mortgage Rates Come From

Mortgage rates are influenced by a variety of factors tied to the economy. One of the most significant is the bond market. When the yield on the 10-year U.S. Treasury Note moves, mortgage rates tend to follow. If the yield goes up, rates go up. If the yield drops, rates do the same. But the housing market and inflation also play a role. A strong housing market and high inflation can push rates higher. A cooling housing market and low inflation can have the opposite effect. These factors are out of your control. But there are several determining factors that are in your control. Let’s look at those:

•   Your credit score A conventional mortgage (one not backed by the government) typically requires a score of 620 or more. The higher the score, the lower your rate.

•   Your down payment Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.

•   Your debt-to-income (DTI) ratio In general, lenders like to see a maximum DTI ratio of 36%.

How Interest Rates Affect Home Affordability

Mortgage rates are worth spending time on because they play such a significant role in home affordability. Look no further than the chart below for proof. If you were to borrow $300,000 with a 30-year term and 6.00% rate instead of a 7.00% rate, you would save more than $60,000 over the life of the loan. As you can see, a shorter loan term also has a big impact on cost. Not everyone can afford the larger payments that come with a shorter term, but if you can, you can capture some savings by paying off the loan over a shorter timeline.

Cincinnati Mortgage Rate Trends

Historical U.S. Mortgage Rates

Knowing the history of mortgage rates can help you make wise decisions about when to get into the mortgage marketplace. And the history of mortgage rates in the U.S. is a bit of a rollercoaster. The 30-year fixed-rate mortgage, for instance, hit an all-time high of 18.63% in 1981. That was a rough time for homebuyers. But after the financial crisis of 2007, rates dropped.

To get some perspective on what a “high” and “low” rate have looked like over the last half-century, consider the graphic. Then check the chart to see how Ohio’s rate has compared to the national average in recent decades — as you can see, the local rate is often below that of the nation as a whole. (The Federal Housing Finance Agency stopped compiling this state-level data after 2018.)

Types of Mortgages Available in Cincinnati, Ohio

In Cincinnati, you have a variety of mortgage options to consider. Familiarize yourself with the most common ones before you begin your loan search in earnest.

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Cost of Living in Cincinnati

The cost of living in Cincinnati, Ohio, is quite reasonable, which is one of the city’s many charms. (It landed the city on SoFi’s list of best affordable places in the U.S.) The city’s median home sale price is approximately $254,000, according to Redfin.

Below you can see how Cincinnati stacks up to other Ohio cities when compared to the cost of living in the U.S. as a whole, which would be 100 on this scale.

Get Your Best Possible Rate in Cincinnati

There are a few things you can do in advance to better your chances of snagging the best possible mortgage rate in Cincinnati. First up, take good care of your credit score. The higher it is, the more attractive your rate can be. Check your credit report for inaccuracies and work to correct any you find. And pay every bill on time. Next, work on that debt-to-income (DTI) ratio. If you can keep it at 36% or lower, lenders will be impressed.

A chunky down payment can also work in your favor, as it reduces the loan amount and the interest that comes with it. Going through the mortgage preapproval process can help you set a budget by showing you exactly what a lender thinks you can qualify to borrow. Having that preapproval letter is also helpful when you put in an offer — it shows the seller you’re motivated.

Helpful Tools & Calculators

A mortgage payment calculator can help you understand the impact of different mortgage rates on what your monthly payments would be. You can plug in different loan terms and rates to see how they would affect monthly payments. All of these calculators will be helpful at different times in your home search.

How to Evaluate Loan Offers in Cincinnati

Securing a competitive mortgage rate is a smart financial move, so once you have offers in hand from multiple lenders (a must), you should compare them head to head. Don’t just look at interest rates. Compare the loans’ annual percentage rate (APR).

When you’re ready to make a decision, if you’re concerned about rates rising, you can opt to pay your chosen lender a fee to lock in your rate for up to 90 days. This can provide both peace of mind and financial stability.

Cincinnati Mortgage Resources

Cincinnati has resources available to those looking to purchase their dream home, especially if you qualify as a first-time homebuyer or have limited financial means (or both). The Ohio Housing Finance Agency (OHFA) is your ally, offering down payment assistance programs like Your Choice Down Payment Assistance. OHFA’s Ohio Heroes program provides a discounted mortgage interest rate to police, nurses, teachers, and others who serve. Its Grants for Grads offers reduced rates and down payment assistance to recent degree recipients. The state also has a Mortgage Tax Credit. To qualify, you’ll need to meet specific income and purchase price limits, and take a free homebuyer education course, among other things.

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Closing Costs in Cincinnati

If you’re buying a home in Cincinnati, you can expect to pay between 2% and 5% of the loan value in closing costs. What exactly are these costs? Well, they include things like loan origination fees, appraisal fees, and title insurance. The total amount you’ll pay can be influenced by the property’s value and location. Eligible homebuyers might find that programs offered by the Ohio Housing Finance Agency provide valuable assistance with closing costs.

The Takeaway

Cincinnati’s mortgage landscape offers a variety of choices for homebuyers. Keeping abreast of current mortgage rates and exploring available assistance programs can be highly beneficial. By doing so, you can make smart choices that align with your financial goals, leading to successful and sustainable homeownership in Cincinnati.

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FAQ

How do I find the best mortgage rates in Cincinnati, Ohio?

To secure the best rates, shop around and compare offers from multiple lenders. Consider both fixed-rate and adjustable-rate mortgages (ARMs) to find the best fit for your financial situation and long-term goals. Compare lender offers using the APR (annual percentage rate), which takes into consideration fees as well as interest.

What factors influence mortgage rates in Cincinnati?

Your credit score, down payment size, and the loan type you select are key factors that can impact the mortgage rates you’re offered.

Will mortgage rates drop in Cincinnati?

While we can’t predict the future, keeping an eye on economic indicators can help. Watch the yield on the 10-year Treasury Note, as mortgage rates tend to follow that. Right now the experts at Fannie Mae are forecasting that rates will end 2025 at an average of 6.30%. But if you find a good rate for your home purchase and are worried about rates going up, consider locking it in.

Is now a good time to buy a house in Cincinnati?

Cincinnati is still more affordable than many other cities, but home prices have risen more than 5% year-over-year. That said, there may be a best time of year to buy in Cincinnati: Prices tend to bottom out in January and February, with predictable highs in June and July as families move and settle in before school starts.

Compare mortgage rates in Memphis.

Introduction to Mortgage Interest Rates

Where Mortgage Rates Come From

The mortgage interest rates lenders offer can vary a lot from place to place and even from person to person. The economy has a major influence on rates, which are affected by the bond market, especially the rate of the 10-year U.S. Treasury Note. When interest rates on the note go up, home loan rates usually rise as well.

Mortgage rates are also personalized for individual borrowers, based on their 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 decrease your rate since lenders often assume that a homebuyer who has more equity in their home will be less likely to default on their mortgage.

Finally, your debt-to-income (DTI) ratio is considered when a lender is determining your interest rate. Mortgage lenders typically like to see a DTI ratio of no more than 36%, though that’s not necessarily the maximum.

Discover how your debt level may impact your mortgage.

Try SoFi’s debt-to-income calculator to calculate your DTI number.

How Interest Rates Affect Home Affordability

The mortgage rate you get has a significant impact on how affordable homes are. To illustrate, a $400,000 loan obtained at a 6.50% interest rate results in a monthly payment of $2,528. However, at the rate of 7.00%, the payment increases to $2,661.

Let’s look at the long-term impact, too. Over the life of the loan, a borrower with the lower interest rate saves nearly $48,000 in interest payments.

As this example suggests, it’s well worth making the effort to do what you can to get a lower rate, including exploring multiple lender options and comparing offers.

Memphis Mortgage Rate Trends

Understanding the history of mortgage rates can give you perspective and help you anticipate where they might be headed. While mortgage rates have gone up since the lows they experienced during the Covid-19 pandemic, they’re still relatively low compared to historical norms.

Should You Wait for Interest Rates to Drop?

If you’re looking to buy a home in Memphis, you might be wondering if it makes sense to wait for interest rates to go down. While it’s always a good idea to keep an eye on the market, current predictions suggest that mortgage rates in Tennessee are likely to stay fairly stable in the near future. According to Fannie Mae estimates, the average mortgage rate will probably be around 6.30% by the end of 2025.

If rates do decrease after you buy your house, you can always opt for a mortgage refinance down the road.

How Costs Stack Up in Memphis

The cost of living in your city can be a significant factor as you plan your finances, since it has an impact both on home prices and how easily you’ll be able to budget for your monthly mortgage payments.

Here’s how Memphis compares to other towns in Tennessee on an index where 100 equals the average cost of living in the U.S.

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How to Get Your Best Possible Rate in Memphis

To help you get your optimal mortgage rates in Memphis, think about making the following smart moves.

•   Evaluate your credit score. If it’s too low to qualify for the rates you want, plan out how to work on building a stronger credit history.

•   Lower your debt-to-income (DTI) ratio. Focus on paying down your debts.

•   Raise the amount of your down payment. Savings and gifts from friends and family can both be used to up the amount.

•   Compare rates from different lenders. Shopping around can help you find the best rate, since lenders have varying qualifications.

•   Consider going through the mortgage preapproval process. This will give you a better sense of what you can afford.

Tools & Calculators

When you’re looking for a home, it’s a good idea to use a mortgage payment calculator. It can give you a realistic sense of what your monthly payments might look like, and it can also calculate the total amount of interest you’ll end up paying during the life of the loan. These tools take into account a number of important variables, such as the loan amount you’re seeking, the interest rate you’re being offered, and the loan term you select. By plugging in different numbers, you’ll get a clear picture of the financial commitments required by different loans.

Here are three calculators that we like.

Types of Mortgages Available in Memphis

In Memphis, you can find many types of mortgage loans, and one is sure to fit your unique financial profile and needs. Conventional mortgages are within reach if you have a credit score of 620 or higher, but for those who don’t meet that criterion, there are other options. Federal Housing Administration (FHA) loans and Veterans Affairs (VA) loans are also available, offering more flexible terms and often lower down payment requirements.

How to Evaluate Loan Offers in Memphis

Let’s talk about the nitty-gritty of comparing and choosing among mortgage rates.

A competitive rate is your ticket to long-term savings. As we’ve seen, even a half a percentage point can add up to substantial cash in your pocket over the life of the loan. Here are some pointers about making your decision.

•   Be sure to compare rates and fees from multiple lenders.

•   Look at each loan’s annual percentage rate (APR), which takes into account fees, closing costs, and mortgage points.

•   If you’re concerned about rates going up, many lenders will let you pay a fee to lock in your rate for up to 90 days.

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Memphis Mortgage Resources

Tennessee, the Volunteer State, is a goldmine of resources and programs to aid would-be homeowners, particularly first-time homebuyers and those with limited financial means.

The Tennessee Housing Development Agency (THDA) helms the Great Choice Home Loan Program, which offers 30-year fixed-rate loans and options for down payment assistance. The program works in conjunction with conventional loans and many government-backed loans. And you can qualify as a first-time homebuyer or as a repeat buyer.

Memphis’s Office of Down Payment Assistance (DPA) also offers a variety of down payment assistance programs.

Closing Costs in Memphis

If you’re buying a home in Memphis, you can expect to pay between 2% and 5% of your loan amount in closing costs. (The exact amount of these costs can vary based on the home’s value and location.) The average cost of a house in Memphis is about $146,000, so closing costs would probably run between around $2,920 and $7,300.

Closing costs typically include things like loan origination fees, appraisal fees, and title insurance. To help reduce these costs, it’s important to shop around and compare different lenders. By understanding and negotiating these costs, you can potentially make your home-buying process more affordable.

The Takeaway

The mortgage market in Memphis is rich with possibilities, offering something for everyone. By keeping your finger on the pulse of current mortgage rates and exploring various assistance programs, you can make informed decisions that will set you on the path to successful homeownership. Whether you’re a first-time buyer or a seasoned homeowner, the key to a successful purchase is understanding the market and your options.

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