Texas Deal: Fixed-rate mortgages starting at 3.75%

B2 Funding has one of the best deals for Texans on fixed-rate home loans.

It's charging just 4.5% with no points for 30-year mortgages and 3.75% with no points for a 15-year loan.

Although mortgage rates have never been this low in May, that's still well below the average cost of those loans across the country -- 4.83% for 30-year loans and 4.00% for 15-year loans.

It's also less than the average cost of those loans in Houston and Dallas, according to our most recent survey of major lenders.

Borrowers looking for the lowest possible monthly payment should opt for the 30-year loan. You'll only need to come up with $506 a month for principal and interest for every $100,000 borrowed.

You can use our mortgage calculator to determine the monthly payments for the amount you want to borrow with this or any home loan.

It will also provide a month-by-month amortization schedule that shows how much you've reduced your debt and how much you still owe if you want to pay the loan off.

The payments would increase to $727 a month for every $100,000 borrowed if you opted for the 15-year loan.

But taking advantage of the lower interest rate and quicker payoff could reduce your interest costs by tens of thousands of dollars over the life of the loan.

See how much interest you could save using our 15-year vs. 30-year mortgage comparison calculator.

B2 Funding is based in Houston and is licensed to write loans only in Texas.

To qualify, you'll need a credit score of 720 or higher and can't be borrowing more than $417,000.

Click here to compare this deal with the best interest rates from scores of other lenders in Texas and acoss the country.

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