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Home Equity Loans

Your home equity is valuable. Put it to work.

Borrow at a low, fixed rate


Use the cash for a college education, a second honeymoon, home remodeling, a dream wedding – whatever is important to you.

Home Equity Basics


Equity is the difference between the current value of your home and how much you owe on your mortgage.

Your equity is used as collateral in a home equity loan.

Quick method of calculating your equity

  1. Estimate your home’s value by checking with online real estate services such as Zillow. (For this example, assume $225,000.)
  2. Check your latest mortgage statement for loan balance. (Assume $120,000)
  3. Subtract mortgage balance from home value. ($225,000 – $120,000 = $105,000.)

Your home equity is $105,000.

Woman using laptop computer

Home equity loans in Texas


When lawmakers in Texas approved home equity loans in 1998 they included a number of consumer protections. Here are the main ones:

  • Debt total limits

    Your total mortgage debt (original mortgage + home equity loan) may not be higher than 80% of your home’s fair market value.

    See calculations below.

  • One loan at a time

    No matter how much equity is in your home, you may only have one home equity loan at a time.

  • One loan in a year

    In any calendar year, you may only have one home equity loan. Even if you’ve fully paid off your first home equity loan, you cannot receive another in the same year.

Check out today’s rates

Home Equity Loans

Loan Type

Loan Term

APR as Low As

Loan Type

1st Lien, $20,000 & up

Loan Term

10, 15 or 20 years

APR as Low As

3.85%

Loan Type

2nd Lien, $20,000 & up

Loan Term

10, 15 or 20 years

APR as Low As

5.85%

Home Improvement Loans

Loan Type

Loan Term

APR as Low As

Loan Type

1st Lien, $20,000 & up

Loan Term

10, 15 or 20 years

APR as Low As

4.10%

Loan Type

2nd Lien, $20,000 & up

Loan Term

10, 15 or 20 years

APR as Low As

6.10%

Compare home equity and home improvement loans


Borrow the funds you need at a fixed rate as low as 3.85%. Use home equity proceeds to finance just about anything.

  • Best for members who:

    Best for members who:

  • Loan proceeds can be used for:

    Loan proceeds can be used for:

  • Can closing costs be rolled in?

    Can closing costs be rolled in?

  • Loan funds are distributed to:

    Loan funds are distributed to:

  • Interest rate

    Interest rate

  • Appraisal needed?

    Appraisal needed?

Home Equity

  • Best for members who:

    Have built a large amount of home equity

  • Loan proceeds can be used for:

    Anything you choose (legal of course!)

  • Can closing costs be rolled in?

    Yes

  • Loan funds are distributed to:

    The borrower

  • Interest rate

    Lower than home improvement loan

  • Appraisal needed?

    Dependent upon situation1

Home Improvement

  • Best for members who:

    Are in the early years of home ownership

  • Loan proceeds can be used for:

    Home improvement only

  • Can closing costs be rolled in?

    No

  • Loan funds are distributed to:

    Licensed contractor only

  • Interest rate

    Higher than home equity loan

  • Appraisal needed?

    Dependent upon situation1

Estimate your closing costs


Most closing costs can be rolled into your loan.

In addition to the figures shown below, appraisal and/or survey fees apply to loans of $100,000 or more.
In such cases, your loan officer will quote fees during the application process.

Home Equity Closing Costs

Summary of Potential Home Equity Closing Costs

Summary of Potential Home Equity Closing Costs

Processing Fee

$200.00

Summary of Potential Home Equity Closing Costs

Title Company Report 

$156.96^

Summary of Potential Home Equity Closing Costs

Flood Certification Fee

$ 16.00

Summary of Potential Home Equity Closing Costs

Automated Valuation Model (AVM) Fee

$ 22.52

Summary of Potential Home Equity Closing Costs

Tax Service Fee

$109.00

Summary of Potential Home Equity Closing Costs

Hazard Insurance Service Fee (if applicable)

$ 55.00

Summary of Potential Home Equity Closing Costs

Flood Insurance Service Fee (if applicable)

$ 27.50

Summary of Potential Home Equity Closing Costs

County Recording Fee - Texas Home Equity Security Document

$ 66.00^

Summary of Potential Home Equity Closing Costs

County Recording Fee - Release of Lien

$ 30.00^

Summary of Potential Home Equity Closing Costs

Electronic Filing Fee ($4 per document)q

$  8.00

Summary of Potential Home Equity Closing Costs

Total of All Fees Shown

$690.98

Home Equity Loan Payment Examples


The charts below show example loan rates, loan amounts, and loan terms. 20% equity is required.

Home Equity Loans Payment Examples - First Lien

Loan Amount 

First Lien - APR* 

Loan Term 

Monthly Payment

Loan Amount 

$20,000 

First Lien - APR* 

3.85% 

Loan Term 

10 years 

Monthly Payment

$201.07

Loan Amount 

$20,000 

First Lien - APR* 

3.85% 

Loan Term 

15 years 

Monthly Payment

$146.44

Loan Amount 

$20,000 

First Lien - APR* 

3.85% 

Loan Term 

20 years 

Monthly Payment

$119.62

Loan Amount 

$35,000 

First Lien - APR* 

3.85% 

Loan Term 

10 years 

Monthly Payment

$351.87

Loan Amount 

$35,000 

First Lien - APR* 

3.85% 

Loan Term 

15 years 

Monthly Payment

$256.27

Loan Amount 

$35,000 

First Lien - APR* 

3.85% 

Loan Term 

20 years 

Monthly Payment

$209.34

Loan Amount 

$50,000 

First Lien - APR* 

3.85% 

Loan Term 

10 years 

Monthly Payment

$502.67

Loan Amount 

$50,000 

First Lien - APR* 

3.85% 

Loan Term 

15 years 

Monthly Payment

$366.10

Loan Amount 

$50,000 

First Lien - APR* 

3.85% 

Loan Term 

20 years 

Monthly Payment

$299.05

Home Equity Loan Payment Examples - Second Lien

Loan Amount 

2nd Lien - APR* 

Loan Term 

Monthly Payment

$20,000 

5.85% 

10 Years 

$220.54

$20,000 

5.85% 

15 Years 

$167.15

$20,000 

5.85% 

20 Years 

$141.56

$35,000 

5.85% 

10 Years 

$385.94

$35,000 

5.85% 

15 Years 

$292.52

$35,000 

5.85% 

20 Years 

$247.73

$50,000 

5.85% 

10 Years 

$551.34

$50,000 

5.85% 

15 Years 

$417.89

$50,000 

5.85% 

20 Years 

$353.90

Home Equity Calculators

Home Equity FAQs

  • A mortgage is the instrument that allows you to purchase/finance your home.  As you make monthly payments on your mortgage you build equity.
  • A home equity loan uses the built up equity in your home loan to serve as collateral for an additional loan.

A home equity loan is secured by your home. Should you not make your home equity loan payments, your home can be subject to foreclosure.

A second risk occurs if your home’s value declines in the market, you could end up owing more (mortgage payment + home equity payment) than your home is worth.

Probably not. If you are interested in a home equity loan, it would be best to improve your credit score before applying.

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Get started on your home equity loan

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The home loan staff works at our Antilley Road branch. To avoid delays, please call ahead to make an appointment.

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Disclosures

1Dependent upon loan amount
2These estimates are provided to give an approximation of the fees involved with a home equity loan.

*APR = Annual Percentage Rate
^Figure is for Taylor County, Texas.  Other counties may charge a different amount.