Mortgage rates directly affect how much house you can actually afford — even a fraction of a percentage point can mean tens of thousands of dollars over the life of a loan. I'm not a lender, but I sit next to this conversation with nearly every buyer I work with, and I've picked up what's worth knowing before you shop for a rate.
Fixed vs. adjustable rate, in plain terms
- Fixed-rate mortgage — your rate stays the same for the entire loan term. Predictable, and usually the right default for a primary residence you plan to keep a while.
- Adjustable-rate mortgage (ARM) — starts lower, then adjusts periodically after an initial fixed period. Can make sense if you have a clear timeline for moving or refinancing.
What actually moves your rate
- Credit score — higher scores consistently get better pricing.
- Down payment — more equity up front means less risk to the lender.
- Loan type — FHA, VA, conventional, and jumbo loans all price differently.
- Loan term — 15-year terms typically carry lower rates than 30-year, in exchange for a higher monthly payment.
- Broader market conditions — the part none of us individually control, which is exactly why locking a good rate when you find one matters.
Why Texas property taxes change the affordability math
Texas has no state income tax, which means property taxes carry more of the weight here than in many states buyers are relocating from — and your monthly escrow payment reflects that. When you're comparing what you can afford, don't just compare the principal-and-interest number; ask your lender for the full payment including taxes and insurance for the specific county and school district you're considering, since rates vary by area.
How to actually get a better rate
- Improve your credit score before you apply, even by a small amount.
- Save for a larger down payment if your timeline allows it.
- Compare offers from at least three lenders — rates and fees both vary more than most buyers expect.
- Ask about discount points if you plan to stay in the home long enough to break even, usually 5-7 years.
- Lock your rate once you find a good one and have a home under contract.
Frequently Asked Questions
Can you recommend a lender?
Yes — I work regularly with a handful of local lenders who know the Houston-area market and move fast on Texas contract timelines. Ask me for an introduction when you're ready.
Should I get pre-approved before I start touring homes with you?
Yes, always. It tells us your real, all-in budget — including taxes — before we fall in love with something outside it.
Ready to talk numbers?