Austin’s 1.8% property tax rate affects total budget but not P&I. Here’s how to decide if a refi delivers real savings.
Rates & Context (Austin 2025)
- Conforming/jumbo rates: ~5.6%–6.2%
- Common loan sizes: $350K–$700K
- Insurance: ~$210/month (hail & storm risk)
When Refinance Makes Sense in Austin
- Rate drop ≥ 0.75% and break-even ≤ 36 months
- No prepayment penalty; staying ≥ 4 years
- Net savings remain positive, even when financing costs
Example: $520K Balance at 6.5% → 5.6% Refi, $7,000 Costs
- Current P&I: ≈ $3,290
- New P&I: ≈ $2,956
- Monthly savings: ≈ $334
- Break-even: $7,000 ÷ $334 ≈ 21 months
- Interest saved vs current: ≈ $46,000
- Net savings after costs: ≈ $39,000
Run your numbers in the refinance calculator for a precise view.
More Austin Scenarios
Shorter Term Option
- $520K at 6.5% (24 yrs left)
- Refi: 5.25% at 20 yrs; $6,500 costs
- Payment may rise slightly; lifetime interest saved ≈ $60K
- Break-even ≈ 20 months
Buydown with Points
- $520K → 5.375% with 0.5 points
- Higher upfront cost; bigger monthly savings
- Points break-even ≈ 26 months
Test both in the refinance calculator to see which wins for your timeline.
FAQ
Do property taxes affect refi decision?
They don’t change P&I, but they affect total housing cost. Focus on payment savings and break-even months to decide.
What if I plan to move in 2 years?
If break-even is longer than your expected stay, refi may not pay off despite a lower rate.
Related Tools & Sources
- Refinance Calculator – compute break-even and net savings.
- How to Use the Refinance Calculator – step-by-step guide.
- Mortgage Calculator – visualize amortization and extra payments.
- Best Free Mortgage Calculators 2025 – compare top tools side-by-side.
- Home Affordability – confirm the new payment fits your budget.
- Freddie Mac PMMS – weekly mortgage rate trends.
- FHFA Conforming Loan Limits – jumbo thresholds by county.
- CFPB on Discount Points – how points trade off with rate.
Run Your Austin Refi
Use the Refinance Calculator to compare scenarios before you lock a rate.