Texas Refinance Calculator
Calculate whether refinancing your mortgage saves money in Texas
Texas Calculator
Get accurate results
Updated for 2025 with real Texas rates, brackets, and regulations
Refinancing in Texas comes with unique benefits and restrictions. The good news: no state transfer tax means lower closing costs. The restriction: Texas's constitutional 80% LTV cap applies to cash-out refinances, limiting how much equity you can access. The 12-day mandatory waiting period applies to equity-based refinances. Rate-and-term refinances (no cash out) are not subject to the 80% LTV restriction. This calculator helps you determine if refinancing makes sense given Texas-specific rules, including the break-even point and lifetime savings.
Calculate Your TX Tax
Monthly Savings
187$/mo
Current Payment
$1,767/mo
New Payment
$1,580/mo
Break-Even
27 months
Closing Costs
$5,000
Lifetime Savings
$-43,777
TX Cash-Out Max (80% LTV)
$200,000
Breakdown
Insight
Refinancing from 7% to 6.5% saves $187/month. Break-even: 27 months. Texas refinance law: the 80% LTV constitutional cap applies to cash-out refinances (Article XVI, §50). There's a mandatory 12-day waiting period before closing. TX closing costs are lower than average because there's no transfer tax. With $-43,777 in lifetime savings, refinancing makes sense if you plan to stay at least 27 months.
AI Explanation
What This Means
Based on default inputs, the Texas Refinance Calculator shows a monthly savings of 187 $/mo. Key figures: Current Payment: $1,767/mo, New Payment: $1,580/mo, Break-Even: 27 months, Closing Costs: $5,000, Lifetime Savings: $-43,777, TX Cash-Out Max (80% LTV): $200,000.
Key Insights
Refinancing from 7% to 6.5% saves $187/month. Break-even: 27 months. Texas refinance law: the 80% LTV constitutional cap applies to cash-out refinances (Article XVI, §50). There's a mandatory 12-day waiting period before closing. TX closing costs are lower than average because there's no transfer tax. With $-43,777 in lifetime savings, refinancing makes sense if you plan to stay at least 27 months.
What You Can Do
Enter your actual figures in the calculator above for a personalized breakdown. Consider consulting a tax professional for comprehensive planning, especially for complex situations involving multiple income sources or deductions.
Keep In Mind
This calculator provides estimates based on 2026 rates. Actual tax liability may vary based on credits, exemptions, and other factors not captured here. This is for educational purposes only and should not be considered tax advice.
How the Texas Refinance Calculator Works
The Texas Refinance Calculator uses 2026 tax rates, brackets, and deductions specific to Texas to provide you with an accurate estimate of your tax obligations. Unlike generic federal-only calculators, this tool accounts for the unique tax structure that Texas residents face.
Formula
Monthly Savings = Old Payment - New Payment. Break-even = Closing Costs / Monthly Savings. TX: no transfer tax, 80% LTV cap on cash-out refi.Simply enter your financial details above, and the calculator instantly computes your results using the latest available data. All calculations happen directly in your browser — your personal information is never sent to any server or stored anywhere.
Why Use a Texas-Specific Calculator?
State-Specific Rates
Uses real 2026 Texas tax brackets, rates, and thresholds — not generic national averages that miss state-level nuances.
Local Programs & Exemptions
Factors in Texas-specific programs, exemptions, and deductions that national calculators simply don't account for.
Instant & Private
All calculations run locally in your browser. No account required, no data stored, no waiting for results.
AI-Powered Explanations
Get a plain-English breakdown of your results with actionable insights you can actually use for financial planning.
What's Included
No Transfer Tax Savings
Lower closing costs mean faster break-even — unique to Texas.
80% LTV Cash-Out Analysis
Shows your maximum cash-out under Texas constitutional limits.
Break-Even Calculator
Determine exactly how many months until refinancing savings exceed costs.
Frequently Asked Questions
Is there a transfer tax on refinancing in Texas?
No. Texas has no transfer tax or documentary stamp tax. This makes refinancing cheaper in Texas than in states like Florida (0.7%), New York (1.4%), or California (varies by city). You save potentially thousands on closing costs.
Does the 80% LTV cap apply to refinancing?
Only for cash-out refinances. If you are doing a rate-and-term refinance (no cash out), the 80% LTV cap does not apply — you can refinance up to 97% LTV with FHA. Cash-out refinances are constitutionally limited to 80% LTV in Texas.
Is there a waiting period for Texas refinances?
For cash-out refinances (home equity), the 12-day cooling-off period applies. For rate-and-term refinances, there is no special Texas waiting period — just standard lender timelines.
When does refinancing make sense in Texas?
Generally when you can reduce your rate by 0.5-1%+ and plan to stay long enough to recoup closing costs. With no transfer tax, Texas break-even points are typically shorter (12-18 months vs 18-24 months in high-tax states).
Can I refinance to lower my property tax escrow?
Refinancing doesn't directly affect property taxes. However, if you successfully protest your property tax assessment, your lender will adjust your escrow payment. This effectively "reduces" your monthly mortgage payment without refinancing.
Important Information for Texas Residents
Tax laws in Texas can change annually. This calculator is updated regularly to reflect the latest 2026 rates and regulations, but you should always verify important financial decisions with a qualified Texas tax professional or CPA.
This tool is designed for informational and educational purposes. While we strive for accuracy using official Texas Department of Taxation data, the results should be used as estimates for planning purposes only. Your actual tax liability may differ based on credits, special circumstances, and legislative changes that occur after our last update.
For filing deadlines, payment schedules, and official forms, visit the Texas Department of Taxation and Finance website. If you have complex tax situations involving multiple states, business income, or significant investment gains, professional guidance is recommended.
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