Texas Mortgage Resource Center

What actually determines mortgage rates?

The mortgage-backed securities market — not the Federal Reserve directly. The Fed sets the federal funds rate, which moves short-term borrowing costs. Mortgage rates follow MBS pricing, which responds to inflation expectations, bond demand, and how investors price prepayment risk. This is why rates sometimes rise on the day the Fed cuts.

Can you take cash out above 80% of your home’s value in Texas?

No — Texas caps it at 80%. Under Section 50(a)(6) of the Texas Constitution, cash-out refinances and home equity loans on a homestead property are limited to 80% of fair market value. This is stricter than most states, and it’s the single rule national mortgage sites most often get wrong about Texas.

Do Texas property taxes change how much house you can afford?

Yes — meaningfully. Property taxes count toward your debt-to-income ratio. Because Texas has no state income tax and comparatively high property tax rates, the same income qualifies for a smaller loan here than in many lower-tax states. Two buyers with identical incomes can qualify for very different amounts depending on the county.