Mortgage Refinance for Texas (2026)
Texas (TX) Key Facts
Average Refinance Closing Costs
$4,500
Break Even Period ( Months)
19
Typical Current Balance
$225,000
Current Average Rate
7.25%
New Average Rate
6.25%
How This Calculator Works in Texas
This mortgage refinance calculator helps you determine whether refinancing your Texas home loan makes financial sense. Enter your current loan balance, interest rate, and the new rate you have been offered to see your monthly savings, total interest savings, and break-even timeline. It is pre-loaded with Texas-specific closing cost estimates to give you an accurate picture.
Texas Overview
Refinancing a mortgage in Texas can lower your monthly payment, reduce total interest, or let you access home equity. Typical refinance closing costs run 2-5% of the loan balance. Texas does not require an attorney for a refinance closing. Since Texas has no state income tax, the federal mortgage interest deduction is often even more impactful for Texas homeowners who itemize.
How Texas Compares
Refinance costs in Texas are broadly similar to nearby states, with closing costs averaging about 2% of the loan balance. In Louisiana, a typical refinance balance is $161,250 with costs of about $3,225. The primary difference between states is the loan amount (driven by home values), which directly affects the dollar amount of closing costs and monthly savings.
| State | Top Rate | Notes |
|---|---|---|
| Louisiana | $3,225 | Typical refinance balance of $161,250 with closing costs of approximately $3,225. Median home price is $215,000. |
| Oklahoma | $3,000 | Typical refinance balance of $150,000 with closing costs of approximately $3,000. Median home price is $200,000. |
| New Mexico | $4,500 | Typical refinance balance of $225,000 with closing costs of approximately $4,500. Median home price is $300,000. |
In Texas, a typical refinance involves a balance of about $225,000 (based on the median home price of $300,000 at 75% LTV). Refinance closing costs average approximately $4,500, or about 2% of the loan balance. At current rates, refinancing from 7.25% to 6.25% could save approximately $241 per month, with a break-even period of about 19 months.
Tips for Texas Residents
- 1Before refinancing in Texas, calculate your break-even point: divide total refinancing costs by your monthly savings. If you plan to stay in the home longer than the break-even period, refinancing likely makes sense.
- 2Closing costs on a refinance in Texas typically run 2-5% of the loan balance. On a $240,000 loan, that is $4,800-$12,000. Some lenders offer no-closing-cost refinances that roll fees into the rate.
- 3Since Texas has no state income tax, the federal mortgage interest deduction is often even more impactful for Texas homeowners who itemize.
- 4You do not need an attorney for a refinance in Texas, though one can review documents if you have concerns about the terms.
- 5Compare at least three lender offers in Texas. Even a 0.125% rate difference on a $240,000 loan saves roughly $9,000 over 30 years.