Texas House-Flipping Interest Rates & Costs

What interest rate should you use for a house flip?

Use the rate quoted for your project, together with the financed amount, points and fees. There is no single hard-money rate that describes every loan. The property, term, borrower experience and renovation funding can change the offer.

Freddie Mac’s PMMS survey provides context for conventional home-purchase mortgage rates. It is not a fix-and-flip loan quote. The Federal Reserve’s H.15 series are market benchmarks, not a lender’s price for your property.

Compare points and fees, not just the rate

One point equals 1% of the loan amount: two points on $200,000 mean $4,000 upfront. Ask whether the points are an origination charge or buy down the rate. Review appraisal, inspection, draw, processing, exit and extension charges as well.

Compare offers for the same funded amount and holding period. Enter loan points once. Combine purchase and resale closing costs with agent fees in the transaction-cost field; use a percentage of your expected resale price.

How interest rates change a six-month flip

For an unchanged $200,000 balance held six months, a 10% annual rate produces $10,000 in simple interest; 12% produces $12,000. That is a $2,000 difference before points and other fees.

Points can reverse the comparison: six months at 10% with three points costs $16,000 in interest and points. At 12% with one point, it costs $14,000. Compare total cost rather than the advertised percentage alone.

What does another 30, 60 or 90 days cost?

At $200,000 and 12%, monthly interest is $2,000. If property taxes, insurance, utilities and other carrying costs add $500 each month, another month costs $2,500; three months cost $7,500 before extension charges or additional repairs.

Allow time for permits, construction, marketing and closing. The delay comparison holds your resale price and other costs unchanged; a price change or extension fee affects the margin separately.

Combine closing costs and agent fees

Add purchase and resale closing costs and your negotiated agent fees together. Divide that dollar total by the expected resale price, then multiply by 100 to enter one transaction-cost percentage. For $340,000 resale and $27,200 combined costs, enter 8%. Loan points remain separate.

The calculation subtracts purchase, repairs, loan interest, points and combined transaction costs. When an address has an available annual property-tax figure, it also prorates that amount over the holding period. Add insurance, utilities and other expenses to your overall purchase budget before deciding what to offer.

Plan a Texas flip around its appraisal district, tax bill and repair scope

Before budgeting a Dallas-area flip, confirm which county holds the parcel. Plano spans Collin and Denton; Houston-area properties can be outside Harris County. Use the subject property’s appraisal district and tax office, not its mailing city, to research ownership and the actual annual tax bill.

A CAD appraisal is not your renovated resale value. Compare nearby closed sales with a similar size, condition and location, then get a repair quote for that specific home. Confirm renovation permits with the city or county responsible for the address.

Budget insurance and timing for the Texas property you will own

Ask for insurance appropriate to a vacant home undergoing renovation, with the work and occupancy disclosed. A Dallas-area project and a coastal Texas project can have different coverage needs; do not carry over a premium from a different property.

Use Texas foreclosure, expired-listing and motivated-seller leads to choose a property, then verify the current notice or listing status. Your financing term must cover the work, marketing and closing timeline—not just construction.

What to confirm in a financing quote

The calculator uses simple interest on an unchanged balance without amortization. It does not model staged draws, compounding, principal payments or income taxes. Match the budget to the quote and contract for your project.

• Amount funded at closing and the renovation draw schedule.
• Whether interest applies to the full commitment or only disbursed funds.
• Points, other fees, minimum interest and prepayment terms.
• Loan term, maturity date and extension requirements and charges.
• Documentation, cash contribution and reserves needed to close.