Refinance Calculator – Texas
Texas homeowners refinance for different reasons than many other states — not because of income tax savings, but due to high property taxes, rising home values, and long-term payment optimization.
This Texas refinance calculator helps you decide whether refinancing your mortgage truly saves money or simply reshapes your payments.
Texas Mortgage Refinance Calculator
Why Refinancing in Texas Is Unique
Texas does not have a state income tax, but it compensates with some of the highest property taxes in the country. This directly affects monthly housing costs.
Because property taxes remain even after refinancing, Texas homeowners must focus on interest savings and break-even timelines rather than monthly payment alone.
Texas law also places limits on cash-out refinancing amounts, making refinance decisions more regulated compared to other states.
Texas Refinance Examples
Example 1 – Rate Reduction:
A $340,000 balance refinanced from 7.0% to 6.1% with $6,000 in closing costs
can save ~$180 per month, breaking even in ~33 months.
Example 2 – High Property Tax Impact:
Even after refinancing, property taxes often remain the largest portion
of the monthly payment in Texas.
Example 3 – Cash-Out Refinance Limits:
Texas limits cash-out refinances to a percentage of home value,
reducing over-leveraging risk.
Is Refinancing Worth It in Texas?
| Situation | Refinancing Impact |
|---|---|
| Interest rate drop ≥ 1% | Often beneficial |
| High closing costs | Longer break-even period |
| Short time in home | Usually not worth it |
| Large remaining balance | Higher savings potential |
Frequently Asked Questions – Texas Refinance
Is refinancing common in Texas?
Yes. Homeowners refinance to manage rising rates and long-term costs.
Are closing costs higher in Texas?
Costs vary but are influenced by loan size and local fees.
Does Texas allow cash-out refinancing?
Yes, but with strict limits compared to other states.
Does refinancing lower property taxes?
No. Property taxes are not reduced through refinancing.
Are refinance rates higher than purchase rates?
Typically slightly higher.
Does refinancing affect credit score?
A small, temporary impact is normal.
Is refinancing better than selling in Texas?
Depends on home equity, goals, and timeline.
Can I refinance multiple times?
Yes, but frequent refinancing increases long-term cost.
Related Mortgage & Refinance Tools
- Refinance Calculator (USA)
- Refinance Calculator by State
- Texas Mortgage Calculator
- Extra Payment Calculator
Disclaimer
This refinance calculator provides estimates for educational purposes only and does not constitute financial, legal, or tax advice.