Home Equity Lines of Credit in Texas
A home equity line of credit, or HELOC, lets you borrow against your home's equity as you need it. You're approved for a set amount, and you draw from it when the time is right, much like a credit card backed by your home. Your first mortgage stays as it is, so you keep the rate you have now. It's a flexible way to pay for projects or expenses that come in stages.
Why Homeowners Choose a HELOC
Borrow as You Go
Take what you need, when you need it.
Pay for What You Use
You only pay interest on the money you've drawn.
Keep Your Low Rate
Your first mortgage and its rate stay the same.
Use It Again
Pay it down and draw again during the draw period.
Fixed or Variable Rates
Choose a variable rate, or lock in a fixed rate with some HELOCs.
Things to Know
A HELOC has two stages. During the draw period, you can borrow and repay as you go. After that, the repayment period begins, and you pay back what you owe over a set time. Texas has its own HELOC rules to protect you. Your first mortgage and HELOC together can't be more than 80% of your home's value, and each draw must be at least $4,000. You can't use a card to draw from it, and you can't raise your limit later without a new loan. Texas also requires a 12-day wait before closing on the home you live in.
Common Questions
How does a HELOC work?
You're approved for a credit limit based on your equity. During the draw period, you borrow what you need and usually make lower payments. When the draw period ends, you repay the balance over a set number of years.How much can I borrow with a HELOC in Texas?
In Texas, your first mortgage plus your HELOC can't be more than 80% of your home's value. For example, if your home is worth $400,000 and you owe $250,000, your line could be up to $70,000.What's the difference between a HELOC and a second mortgage?
A HELOC is a line of credit you can draw from over time, and the rate is often variable. A second mortgage gives you one lump sum, usually with a fixed rate and payment. If your costs will come in stages, a HELOC is often the better fit.Are there special HELOC rules in Texas?
Yes. Each draw must be at least $4,000, you can't use a debit or credit card to draw, and you can only have one home equity loan on your home at a time. These rules are there to protect you, and I'll walk you through each one.Can I use a HELOC to remodel my home?
Yes. Many homeowners use a HELOC to pay contractors as the work gets done. For larger projects, a renovation loan may be a better fit, so I'll help you compare both.
Ready to See What Your Qualify For?
Apply online in a few minutes. I'll review your options and reach out to talk through the next steps.
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