Home equity line of credit
Use your equity. Keep your rate.
Why homeowners choose a HELOC
- Keep the rate on your current mortgage
- Draw what you need, when you need it
- Pay interest only on what you've used
- Great for renovations, tuition or a safety net
- Can be used to pay off higher-interest debt
How it works
- 1. Check your equity. Use the calculator below.
- 2. Renee shops lenders. Rates, fees and draw terms vary a lot between them.
- 3. Close and draw. Use the line as needed and pay it down on your schedule.
How much could you access?
Your home's value
- Current mortgage
- Your line
- Still available
- 20% Texas keeps protected
You may be able to access up to
$150,000
- Line amount
- $75,000
- Interest-only payment if fully drawn
- $531/mo
- Your first mortgage
- Stays as is
HELOC rates are usually variable, and the payment depends on how much you draw.
Have Renee check your real numbers
She'll compare HELOC options across lenders, and against a cash-out refinance, so you see the best fit.
Estimates for illustration only, not a loan offer or rate quote. The example rate is not today's rate. Your actual rate, payment and costs depend on credit, property, loan program and market conditions. Property tax and insurance vary by county and property.
HELOC, second mortgage or cash-out refi?
| HELOC | Closed-end second | Cash-out refinance | |
|---|---|---|---|
| How you get the money | A line you draw from as needed | One lump sum | One lump sum, in a new first mortgage |
| Rate | Usually variable | Fixed | Fixed or adjustable |
| Your current first mortgage | Stays as is | Stays as is | Replaced at today's rates |
| Payment | Based on what you've drawn | Same every month | One new payment |
| Best for | Ongoing or uncertain costs | A known, one-time cost | When today's rate beats your current one |
HELOC questions
How much can I borrow?
In Texas, all the loans on your home together can't be more than 80% of its value. The calculator above shows what that leaves you.
Do I have to refinance my first mortgage?
No. A HELOC is a second loan, so a great rate on your first mortgage stays exactly as it is.
How do payments work?
You pay on what you've drawn, not the full line. Most HELOCs have a draw period, then a repayment period where you pay down principal. Rates are usually variable.
What's different in Texas?
Texas has extra consumer protections for home equity loans, including the 80% limit and a 12-day waiting period before closing. Renee walks you through each one.
Ready to put your equity to work?
Tell Renee what you need and she'll compare your options.