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 6.00% APR. Please contact our Mortgage Loan department at 677-2274 or 800-677-6770 to request a home equity application packet.
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 your current home.
|
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 Type First Lien - $20,000 to $99,000 |
Loan Term 20 years |
Interest Rates - APR* 6.00% - 7.25% |
|
Loan Type First Lien - $100,000 to $299,999 |
Loan Term 20 years |
Interest Rates - APR* 5.75% - 7.00% |
|
Loan Type First Lien - $300,000 and up |
Loan Term 20 years |
Interest Rates - APR* 5.50% - 6.75% |
|
Loan Type |
Loan Term |
Interest Rates - APR* |
|
Loan Type 2nd Lien - $20,000 to $99,999 |
Loan Term 20 years |
Interest Rates - APR* 7.25% - 8.50% |
|
Loan Type 2nd Lien - $100,000 to $299,999 |
Loan Term 20 years |
Interest Rates - APR* 7.00% - 8.25% |
|
Loan Type 2nd Lien - $300,000 and up |
Loan Term 20 years |
Interest Rates - APR* 6.75% - 8.00% |
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 an 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 Texas lawmakers 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.
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.
|
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
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.