Texas Mortgage Refinance Calculator

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*Estimates only. Actual savings depend on credit, property, and lender terms. Texas cash-out limited to 80% LTV. Serving Texas & 30+ States.

🏛️ Texas 80% LTV Cash-Out Rule

Under the Texas Constitution (Section 50(a)(6)), cash-out refinances are capped at 80% of your home’s appraised value. If your Texas home is worth $400,000, the maximum cash-out loan is $320,000 — regardless of how much equity you have. This rule is unique to Texas and does not apply in other states. There is also a 12-day waiting period after application before closing and a one-year seasoning requirement before you can do another cash-out refinance.

🎖️ VA IRRRL: The Best Refinance for Texas Veterans

Texas veterans with an existing VA loan can use the VA Interest Rate Reduction Refinance Loan (IRRRL), also called the VA Streamline. It typically requires no appraisal, no income verification, minimal paperwork, and can often close in two to three weeks. The VA IRRRL is one of the most efficient refinance options in existence — and Texas veterans with rates above 6% should evaluate it seriously right now.

📉 Rate-and-Term Refinance: Lower Your Payment

A rate-and-term refinance replaces your existing Texas mortgage with a new one at a lower interest rate or different term — without pulling out cash. This is the most straightforward way to lower your monthly payment. Texas homeowners who bought in 2022 or 2023 at rates of 7%+ may find significant savings available now. Use the calculator above to see your break-even point before deciding.

🏠 Texas Homestead Exemption & Refinancing

If you have a Texas Homestead Exemption on your primary residence, certain protections apply during refinancing. Once you take a cash-out refinance on your Texas homestead, it is converted to a Section 50(a)(6) loan permanently — which means future refinances must also comply with Texas cash-out rules even if you’re not pulling out additional cash. A rate-and-term refinance can convert it back, but this requires careful handling. We can walk you through the implications.

📉 Your Rate Can Drop 0.5%+

Generally, refinancing makes sense when you can reduce your rate by at least half a point. The bigger the rate drop, the faster you recoup closing costs. On a $300,000 Texas loan, a 1% rate cut saves roughly $180–$200 per month.

⏱️ You’ll Stay Past the Break-Even

Divide your closing costs by your monthly savings to find your break-even point in months. If you plan to stay in your Texas home longer than that period, refinancing makes financial sense. If you’re planning to sell soon, it may not.

📊 You Can Remove PMI

If your Texas home has appreciated and you now have 20%+ equity, refinancing can eliminate PMI — saving $100–$400 per month on top of any rate savings. Texas appreciation rates in metros like Houston, Dallas, and Austin have been strong.

🔄 You Want to Change Loan Types

Refinancing lets you switch from FHA (with lifetime MIP) to a conventional loan once you have 20% equity — eliminating the mortgage insurance permanently. It also lets you convert an ARM to a fixed rate for long-term stability.

💰 You Need Equity Access

Texas cash-out refinances let you access up to 80% LTV for home improvements, debt consolidation, or investment. Remember Texas’s constitutional limits — but for eligible homeowners, this can be a powerful financial tool.

🛒 We Shop Lenders for You

Your current lender has no incentive to offer their best rate. As a Texas mortgage broker, Adam Bartling & Team shops multiple lenders simultaneously so they compete for your refinance — giving you better rates and lower costs than going direct to one bank.

When should I refinance my Texas mortgage?

Consider refinancing your Texas mortgage when you can lower your rate by 0.5% or more, when your home has appreciated enough to eliminate PMI, when you want to change loan terms, or when you need to access equity. Texas cash-out refinances are capped at 80% LTV — use the calculator above to find your break-even point before you decide.

What is the break-even point on a mortgage refinance?

The break-even point is when your cumulative monthly savings equal your closing costs. If closing costs are $6,000 and you save $200 per month, you break even at 30 months. If you plan to stay in your Texas home longer than that, refinancing saves you money. The calculator above shows your break-even point instantly.

How much does it cost to refinance in Texas?

Refinance closing costs in Texas typically range from 2% to 5% of the loan amount — roughly $3,000 to $10,000 on average. Costs include the appraisal (~$500), title insurance, origination fees, and lender charges. As a mortgage broker, we shop multiple lenders which can meaningfully reduce the fees you pay. Some lenders also offer no-closing-cost refinances with a slightly higher rate.

What is the Texas 80% LTV rule for cash-out refinancing?

Under the Texas Constitution, cash-out refinances are limited to 80% of your home’s appraised value. On a $400,000 Texas home, the maximum cash-out loan is $320,000 minus any existing balance. There is also a 12-day waiting period after application and a one-year seasoning requirement. These rules are unique to Texas and apply to primary residences only.

Can I do a VA streamline refinance (IRRRL) in Texas?

Yes. Texas veterans with an existing VA loan can use the VA IRRRL (Interest Rate Reduction Refinance Loan) to lower their rate with minimal paperwork, usually no appraisal, and often no out-of-pocket costs. It is one of the fastest and most borrower-friendly refinance programs available — and Texas veterans with rates above 6.5% should evaluate it now.

What credit score do I need to refinance in Texas?

Most lenders require a minimum 620 credit score to refinance a conventional loan in Texas. FHA streamline refinances may allow lower scores with limited documentation. VA IRRRL refinances have no official minimum, though most lenders prefer 580+. Better credit scores qualify for lower rates — which shortens your break-even and increases lifetime savings.

Should I shorten my loan term when I refinance?

Refinancing from a 30-year to a 15-year Texas mortgage will increase your monthly payment but can save $100,000 or more in total interest. This makes sense if your income has grown and you want to build equity faster or pay off your home sooner. Use the calculator’s loan term selector to compare 15 vs 30-year scenarios side by side.

Why use a mortgage broker to refinance instead of my current lender?

Your current lender has no incentive to give you their best rate — they already have your loan. A Texas mortgage broker like Adam Bartling & Team shops multiple lenders simultaneously so they compete for your refinance. This typically results in better rates, lower fees, and more loan type options. We provide an education-first approach with no upfront credit check and dedicated support from application through closing.

About the Author

Adam Bartling — Loan Officer & Retired U.S. Army Captain

Adam Bartling is a retired Army Captain and licensed Texas Loan Officer (NMLS #2213358) with Movement Mortgage (NMLS #39179). He specializes in VA loans, FHA loans, conventional mortgages, cash-out refinancing, DSCR investor loans, and construction financing across Texas and 30+ states. His education-first approach helps Texas homeowners evaluate every refinance option clearly before committing to any lender.