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 7.10% 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 $220,000.)
Check your latest mortgage statement for loan balance. (Assume $120,000 for this example.)
Subtract mortgage balance from home value. ($220,000 – $120,000 = $100,000.)

Your home equity is $100,000.

Texas Has Strict Guidelines for Home Equity Loans

When lawmakers in Texas approved home equity loans in 1998 they included strong 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 situation?

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 loan term, 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* 7.00% - 8.25%
Loan Type First Lien - $100,000 to $299,999	Loan Term 20 years	Interest Rates - APR* 6.75% - 8.00%
Loan Type First Lien - $300,000 and up	Loan Term 20 years	Interest Rates - APR* 6.50% - 7.75%
Loan Type	Loan Term	Interest Rates - APR*
Loan Type 2nd Lien - $20,000 to $99,999	Loan Term 20 years	Interest Rates - APR* 8.25% - 9.50%
Loan Type 2nd Lien - $100,000 to $299,999	Loan Term 20 years	Interest Rates - APR* 8.00% - 9.25%
Loan Type 2nd Lien - $300,000 and up	Loan Term 20 years	Interest Rates - APR* 7.75% - 9.00%

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* 8.00% - 9.25%
Loan Type 1st Lien - $100,000 to $299,999	Loan Term 20 years	Interest Rate - APR* 7.75% - 9.00%
Loan Type 1st Lien - $300,000 and up	Loan Term 20 years	Interest Rate - APR* 7.50% - 8.75%
Loan Type	Loan Term	Interest Rate - APR*
Loan Type 2nd Lien - $20,000 to $99,999	Loan Term 20 years	Interest Rate - APR* 9.50% - 10.75%
Loan Type 2nd Lien - $100,000 to $299,999	Loan Term 20 years	Interest Rate - APR* 9.25% - 10.50%
Loan Type 1st Lien - $300,000 and up	Loan Term 20 years	Interest Rate - APR* 9.00% - 10.25%

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

See all 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.

See all Lending FAQs

Get started on your home equity loan

Visit in person

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

Apply Online

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Call Us

(325) 677-2274 or (800) 677-6770

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Disclosures

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