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Home Equity Loans

Your home equity is valuable. Put it to work.

Borrow at a low, fixed rate


A home equity loan allows you to borrow money using the equity in your home as collateral. Loan proceeds can be used for a college education, a second honeymoon, home remodeling, a dream wedding – whatever is important to you. Borrow the funds you need at a fixed rate as low as 6.35% APR.

Home Equity Basics


Equity is the difference between the current value of your home and how much you owe on your mortgage. Here’s a quick method for calculating that amount.

Estimate your home’s value by checking with online real estate services such as Zillow. (For this example, assume $225,000.)

Check your latest mortgage statement for loan balance. (Assume $120,000 for this example.)

Subtract mortgage balance from home value. ($225,000 – $120,000 = $105,000.)

Your home equity is $105,000.

Woman using laptop computer

Texas Has Special Rules for Home Equity Loans


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

  • Debt Total Limits – Your total mortgage debt (original mortgage plus home equity loan) may not be higher than 80% of your home’s fair market value.
  • One Home Equity Loan at a Time – No matter how much equity is in your home, you may only have one home equity loan at any given time.
  • One Home Equity Loan in a Year – In any calendar year, you may have only one home equity loan.  Even if you have fully paid off your first home equity loan, you cannot receive another one during the same calendar year.

Home Equity Loan vs. Home Improvement Loan


You can use either a home equity loan or a home improvement loan to make make upgrades to your home. Which one works best for your circumstances?

  • 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

View Current Loan Rates


In order to apply for a home equity loan, applicants need 20% equity in their home. Loan rates are dependent upon credit score and value of collateral.

Home Equity Loans

Loan Type

Loan Term

Interest Rates - APR*

Maximum loan term is 20 years. Interest rate discounts are available on shorter term loans. There is 0.50% discount for a 10 year loan and a 0.25% discount for a 15 year loan.
Loan rates are subject to change without notice.
*APR – Annual Percentage Rate

Loan Type

First Lien - $20,000 to $99,000 

Loan Term

20 years

Interest Rates - APR*

6.35% - 7.60%

Loan Type

First Lien - $100,000 to $299,999 

Loan Term

20 years

Interest Rates - APR*

6.10% - 7.35%

Loan Type

First Lien - $300,000 and up 

Loan Term

20 years

Interest Rates - APR*

5.85% - 7.10%

Loan Type

Loan Term

Interest Rates - APR*

Loan Type

2nd Lien - $20,000 to $99,999

Loan Term

20 years

Interest Rates - APR*

7.60% - 8.85%

Loan Type

2nd Lien - $100,000 to $299,999

Loan Term

20 years

Interest Rates - APR*

7.35% - 8.60%

Loan Type

2nd Lien - $300,000 and up

Loan Term

20 years

Interest Rates - APR*

7.10% - 8.35%

Home Improvement Loans

Loan Type

Loan Term

Interest Rate - APR*

Maximum loan term is 20 years. Interest rate discounts are available on shorter term loans. There is 0.50% discount for a 10 year loan and a 0.25% discount for a 15 year loan.
Loan rates are subject to change without notice.
*APR – Annual Percentage Rate

Loan Type

1st Lien - $20,000 to $99,999

Loan Term

20 years

Interest Rate - APR*

8.60% - 9.85%

Loan Type

1st Lien - $100,000 to $299,999

Loan Term

20 years

Interest Rate - APR*

8.35% - 9.60%

Loan Type

1st Lien - $300,000 and up

Loan Term

20 years

Interest Rate - APR*

8.10% - 9.35%

Loan Type

Loan Term

Interest Rate - APR*

Loan Type

2nd Lien - $20,000 to $99,999

Loan Term

20 years

Interest Rate - APR*

10.10% - 11.35%

Loan Type

2nd Lien - $100,000 to $299,999

Loan Term

20 years

Interest Rate - APR*

9.85% - 11.10%

Loan Type

1st Lien - $300,000 and up

Loan Term

20 years

Interest Rate - APR*

9.60% - 10.85%

Estimate your closing costs


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.

Most closing costs can be rolled into your home equity loan.

Home Equity Closing Costs (estimated)

Summary of Potential Home Equity Closing Costs

Summary of Potential Home Equity Closing Costs

Origination Fee

$500.00

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

$114.00

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)

   $8.00

Summary of Potential Home Equity Closing Costs

Total of All Fees Shown

$995.98

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.

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

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