Texas is home to some of the largest real estate markets in the country, with hundreds of lenders financing purchases and refinancing existing mortgages. For a realistic picture of the best mortgage lenders in Texas, we collected estimates from banks and direct lenders doing business throughout the Lone Star State.
- Best Mortgage Rates in Texas
- Best Mortgage Lender for First Time Homebuyers
- Best Online Mortgage Lender
- Best Lender for In-Person Service in Texas
- Best Lender for a VA Home Loan
Best Mortgage Rates in Texas
We found the best mortgage rates in Texas were substantially lower than those in many other U.S. states, but they followed a pattern we've seen elsewhere. The lowest interest rate offers for a mortgage in Texas tended to cluster around a single figure, with multiple lenders quoting the same rate.
Lowest Mortgage Rates for Texas
|Mortgage Capital Associates||3.63%||3.65%||$912||$650|
|Watermark Home Loans||3.63%||3.67%||$912||$1,041|
|US Wide Financial||3.75%||3.75%||$926||$0|
Estimates for a 30-year fixed rate mortgage for $200,000 with 20% down payment and 740 credit score.
Though rates change on a weekly basis, it's reasonable to assume that there will always be more than one lending option available to you at the lowest end. This makes it necessary to consider additional factors, such as the mortgage APR. Figures like APR allow consumers to understand differences that go beyond the advertised rate. These differences mostly have to do with the upfront cost of the home loan: as a borrower, you're responsible for paying origination fees to the lender as well as third-party service fees.
Comparing mortgage rates in Texas by lender type revealed that online lenders tended to lead the pack, with brick-and-mortar banks generally asking for higher rates. However, the complexity of home loans can make it difficult for less experienced applicants to navigate the selection process on their own. Simply looking for the lowest rate can lead to a mortgage lender who isn't equipped to provide consistent and high-quality customer support at every step.
Best Mortgage Lender for First Time Homebuyers: Quicken Loans
If you're buying your first home in Texas, Quicken Loans may be the best lending option to consider first. This lender's strong customer service and competitive rates on FHA loans make it an informative and cost-effective choice for new homeowners, who of course need both qualities in a lender.
First-Time Purchase Mortgages in Texas
|Lender||Rate||APR||Monthly Payment||Down Payment|
|Bank of America||3.88%||4.38%||$1,251||5.0%|
Estimates for a $200,000 loan amount with minimum down payment and 740 credit score.
Quicken is a massive presence in Texas and throughout the country, thanks to the success of its online-only lending model. While you might assume that an online lender with no local offices would be hard-pressed to match the level of service a borrower can get from a brick-and-mortar bank, Quicken appears to have no trouble taking care of its customers. According to JD Power, it enjoys one of the highest scores in consumer satisfaction for the mortgage-lending industry.
Quicken's online mortgage program, named Rocket Mortgage, also delivers significant value to aspiring homeowners. Not only is this online platform accessible at any time and place, it also quoted a significant advantage on rates for the newcomer-friendly FHA loan. This government-backed program minimizes down payments, and its mortgages obtained through Quicken kept interest rates at manageable levels. The company also provides conventional alternatives to the FHA loan, which may provide a path to even-lower down payments for qualifying applicants.
Best Online Mortgage Lender: Guaranteed Rate
If you're interested in a swift origination process, and don't mind financing a home online, Guaranteed Rate is our top recommendation for Texans, thanks to its convenient web interface and breadth of loan options.
Guaranteed Rate Mortgage Loans
|Loan Type||Rate||APR||Monthly P+I|
|30-Year FHA Loan||3.50%||4.35%||$731|
|30-Year VA Loan||3.63%||4.00%||$730|
Estimates for a $200,000 purchase loan with 20% down payment and 740 credit score. The APR and monthly costs for ARMs can increase based on changes in the index rate.
Whether you're a current or aspiring homebuyer, it's highly likely that Guaranteed Rate has a relevant mortgage available. Its rates are comparable to the best offers we saw in each category of home loan, from conforming loans to government-backed FHA and VA loans. This makes Guaranteed Rate an equally valid choice regardless of the loans you qualify for, while enhancing its value for people who haven't settled on which mortgage format will best suit their needs.
Best Lender for In-Person Service in Texas: Chase Bank
With hundreds of branches spanning Texas, from El Paso to Beaumont, Chase is the most accessible mortgage lender in the state. If you want to discuss your home financing in person with a mortgage professional, your local Chase branch is likely the most convenient place to have that conversation.
Mortgage Loans at Chase Bank
|Loan Type||Rate||APR||Monthly Payment||Est. Closing Costs|
Estimates for a $200,000 purchase loan with 20% down payment and 740 credit score
Chase's mortgages have earned better ratings in customer service than some other large banks, even though its rates and fees aren't much lower than those of its competitors. With so much of its business focused on credit cards and deposit account services, Chase only provides mortgages as a popular amenity for customers that use its other products. This focus on existing (and thus high-value) customers may explain why the bank has earned an above-average satisfaction rating, higher than either of its largest rivals--Wells Fargo and Bank of America.
Applying for a mortgage at Chase also allows you to keep all your finances at one institution, which makes it easier for you to manage payments and keep track of your balances. The bank also delivers one of the better online banking experiences through its mobile app and web platform, which let you handle your Chase deposit and loan accounts through one unified interface. The tools and integration that Chase provides makes it far less likely that you'll find yourself missing payments or important changes to your mortgage loan.
Best Lender for a VA Home Loan: USAA
For military families and veterans living in Texas, the VA loan program offered through USAA represents the most affordable path to owning a home. While many other lenders participate in VA loan origination, USAA, which specializes in serving the military community, has found the greatest success with this loan type, thanks to its affordable loan conditions and its strong record of meeting customer needs.
Best VA Lenders in Texas
|Lender||Mortgage Rate||APR||Monthly P+I||Estimated Points and Fees|
Fixed-rate estimates for a 30-year VA loan of $225,000 with 0% down payment, 2.15% VA funding fee and credit score of 740.
USAA mortgage products cater specifically to consumers who have ties to the armed forces—and with dozens of military bases such as Fort Hood, Texas is home to more than 1.8 million veterans and active duty personnel. As one of the state's biggest VA lenders, USAA quoted a VA loan estimate that balanced the need for a reasonable monthly payment with the formidable closing costs of a mortgage. Although at least one lender offered a lower interest rate, none were rated higher for consumer satisfaction than USAA.