Mortgage rates for Austin, Texas go down to 3.00%

Mortgage rates for Austin, Texas on Lender411 for 30-year fixed-rate mortgages are at 3.00%. That dropped from 3.00% to 3.00%. The 15-year fixed rates are now at 2.56%. The 5/1 ARM mortgage for Austin, Texas is now at 4.56%.

Austin is the capital city of Texas and a major technology and education hub, hosting about 90,000 college students. It has been ranked as one of the safest metropolitan areas in the United States several times.The city is typically humid and receives an average of 34 inches of rainfall every winter.

Austin FHA Loans

The Federal Housing Administration (FHA) insures loans that have long been favorites of first time buyers and those with smaller cash reserves thanks to its low down payment requirement and relaxed credit standards. If you qualify, you'll be subject to the following requirements:

• Down payment, loan-to-value (LTV): 3.5%, 96.5%.
• Credit score minimum: Typically 580 or greater. 
• Debt-to-income (DTI): Typically 45-50% or less. 
• Upfront mortgage insurance of 1.75% the base loan amount is required. 

Annual mortgage insurance premiums of varying percentage are also required, and paid monthly. New FHA borrowers, however, will receive annual MIP rates of half a percent lower than the original rate, typically 1.35%.

Austin First Time Homebuyer Loan Programs

If you live within the Austin city limits, you are hopefully eligible for the Down Payment Assistance Program and/or the Community Land Trust. To learn more about Austin-specific first time homebuyer mortgages, visit Lender411's page for Austin first mortgage.

Statewide Grant and Assistance Programs

The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home loan program, which offers a low down payment, fixed-rate mortgage with down payment and closing cost assistance for as much as 5% of the loan. Regional income and property price limits apply. 

The My First Texas Home option can be used in conjunction with the Mortgage Credit Certificate program, which allows participants to decrease the federal withholding in every paycheck, better enabling them to make a monthly mortgage payment. Annual savings can go up to $2,000, or about $166 per month. Participants must be purchasing in a targeted area. 

Lenders in: Austin, Texas.