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Best Texas Home Equity Loans of 2024
If you’re thinking about a home equity loan in Texas, there’s a lot to consider. To find the best Texas home equity loans you have to research lenders, rates, and borrowing limits. There are additional factors, like qualifying for a Texas home equity loan and your existing debt level.
We’ve put together a list of the best Texas home equity loans so you can easily compare rates, terms, and loan requirements. Find out more about home equity loan providers in Texas.
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Trusted Company Reviews #1 Pick for 2024
- Features a network of 300-plus lenders
- Makes applying for loans easy
- Highly rated lender
Why we love it 💖
With LendingTree you can apply and receive loan options in minutes, plus choose from multiple lenders.
Our Highest Rated Texas Home Equity Loans Companies
- Provides updates on better deals
- More than 30 years of experience
- No fees to use LendingTree
- Can borrow up to $500,000 and 100% of home value
- Has high customer review ranks
- Home equity loans have fixed rate
- Has operated for more than 90 years
- Fast rate quotes
- 24/7 customer service availability
- Can borrow up 90% of home equity (80% in Texas)
- No penalty for prepayment
- Only offers HELOCs
- Max of 85% of Loan to Value, up to $400,00
- Funds available in as few as five days
- Fixed interest rates
What is a Home Equity Loan?
A home equity loan allows homeowners to borrow against the equity they’ve built in paying their mortgage. A home equity loan is sometimes called a second mortgage because you have to pay the loan back as you continue to pay your mortgage. A home equity loan helps people access a lump sum of cash at one time to help cover emergency expenses or other things that require a lot of cash. Home equity loans have an application process and fees associated with applying and closing the loan.
Why Choose a Home Equity Loan?
A home equity loan allows you to access large amounts of cash at one time. A cash infusion can help in a number of ways. You could have medical bills to pay, extensive home repairs, pay for college, consolidate debt, pay for a wedding, fund a business, use for investments or other big expenditures.
What to Know About a Texas Home Equity Loan
Home equity loans are available in all 50 states and each state can have specific rules regarding them. Texas stands out with its home equity loan rules. You can only have one home equity loan at a time in Texas. Often people will want to take a home equity loan out on a secondary property, but that’s only allowed in Texas if you’ve paid the mortgage on your primary home in full. Additionally, Texas caps the amount you can borrow against your home equity at 80% of the home’s appraised value. Some lenders will set a limit in addition to the 80% rule.
Which company is the best and why?
We reviewed the best private lending companies and found LendingTree as the best Texas home equity loan provider. LendingTree doesn’t finance home equity loans itself. Instead the company draws upon a pool of lenders to find the best interest rates for home equity loans.
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LendingTree
Best Overall
Trusted Company Reviews Rating Score for company name: 9.0 Very Good
Review
LendingTree offers a great resource for those searching for a home equity loan. While LendingTree has a lot of useful information, it won’t serve as a lender. Instead, the company connects you with lenders so you can find the right deal. LendingTree enjoys high reviews from users who have found the service helpful. LendingTree leverages its partnership with lenders so you don’t have to go through the application process with several lenders separately.
About
LendingTree simplifies the home equity loan search by doing the work for you. After you provide some information, the company will discover the best home equity lenders for your situation. LendingTree will match you with five lenders and you can continue the home equity loan process with the lender you like best.
Features and Benefits
- Quick application process and funding
- Approval qualifications vary by lender
- Find rates across companies simply
- Offers access to several types of financial services
- Application doesn’t affect credit score
Why we Chose
LendingTree is great for those who want to consolidate the home equity loan process into one step. You can find multiple rates through LendingTree, saving you from visiting several lenders and submitting applications. Though you have to submit personal information to the platform, it won’t affect your credit score, which is reassuring for those who worry about applying to multiple places for a home equity loan in Texas. With LendingTree you can compare lender rates and terms in one place to find the right fit for your needs.
Pros and Cons
Pros
- Receive up to five loan offers
- Application doesn’t affect credit score
- Has A+ BBB rating and 4.3 stars out of 5 from Trustpilot based on more than 13,000 reviews
Cons
- Personal information shared with several lenders
- Rates and closing costs vary by lender
- Matches not guaranteed
| Loan Amounts | Varies by lender |
| Terms (Months) | Varies by lender |
| APR | Varies by lender |
Greater Texas Credit Union
Best for: Low rates
Trusted Company Reviews Rating Score for Greater Texas Credit Union: 8.6
Review
Credit unions have advantages over traditional lenders and Greater Texas Credit Union stands out because it can offer rates others can’t match. The credit union also allows lower borrowing minimums.Greater Texas Credit Union has a lower borrowing limit than other lenders.
About
As a credit union, Greater Texas Credit Union has some of the best home equity loan rates around. The APR starts at 5.67% with a $10.000 minimum. The rate rises with longer terms to 6.26% for 15 years and 6.8% for 20 years. Even those rates fall below those of competitors. You do have to join the credit union to enjoy those rates. You can become part of the credit union with a $5 deposit.
Greater Texas Credit Union requires a 600 credit score and allows a maximum loan amount of $300,000 or 80% of your home’s equity. It can take a little longer to get approved and access funds compared to other lenders, but the lower rates can be worth the wait.
Features and Benefits
- Loan maximum of $300,000
- No prepayment penalties
- Minimum credit score of 600 required
- Has payment calculator available
- $10,000 minimum to borrow to refinance current loan
Why we Chose
We picked Greater Texas Credit Union because of its low interest rates. With rates that start at 5.67%, it’s hard to find a better deal around. Greater Texas Credit Union also does not have closing costs and there is no penalty for prepayment of your home equity loan. There is a tradeoff with those low rates. Greater Texas Credit Union can’t match the speed in which competitors offer with funding.
Pros and Cons
Pros
- No prepayment penalties
- Interest paid can be tax deductible
- No closing costs
Cons
- Appraisal required on loans of $100,000 and more and if the Loan to Value ratio of the property is more than 65%
- Home has to be in Texas
- Closing period can take around 20 days
| Loan Amounts | $10,000 and $300,000 |
| Terms (Years) | 5, 10, 15, 20 years |
| APR | Rates start at 5.67% |
Rocket Mortgage
Best for: Customer Service
Trusted Company Reviews Rating Score for company name: 8.4
Review
Rocket Mortgage has established itself as a top national lender through the years but it tends to have a more restrictive borrowing policy than competitors. Rocket Mortgage limits home equity loan terms to 10 or 20 years. There is also a $350,000 cap on home equity loans. The minimum borrowing amount starts at $45,000. Unlike other lenders, Rocket Mortgage doesn’t disclose its rates and it’ll run a credit check if you want to apply for a home equity loan.
About
Rocket Mortgage offers generous home equity loan borrowing limits. You will need to get your home appraised before getting a home equity loan and terms are limited to 10 or 20 years. Rocket Mortgage doesn’t post its loan rates, which makes it difficult to compare to other lenders. You can easily apply for a home equity loan online and it can take a little more than two weeks to get a loan after applying.
Features and Benefits
- Ranks second in mortgage origination satisfaction by JD Power
- Easy-to-use mobile app and online approvals
- Can borrow up to 90% of home’s value
Why we Chose
Rocket Mortgage makes it easy to apply for a home equity loan through its website and mobile app. The lender makes the process go quick and has generous lending limits. Those who have used Rocket Mortgage have a high rate of satisfaction.
Pros and Cons
Pros
- High customer satisfaction
- Can take out up to $500,000
- Can take a loan on a secondary home
Cons
- Must have paid at least $45,000 of mortgage
- Need a credit score of 680 or better
- Closing costs range between 2% and 6%
| Loan Amounts | $45,000 to $500,000 |
| Terms (Years) | 10 to 20 |
| APR | Not disclosed |
Figure
Best for: Quick HELOCs
Trusted Company Reviews Rating Score for Figure: 7.5
Review
Figure enjoys rave reviews for its HELOC offerings. The company makes applying for a HELOC quick and easy. You can receive funding in as few as five days. Figure differs from other lenders in its rates and borrowing limits. Figure caps its lending limit at $400,000 and its lowest rate starts at 7.4%. It’s a competitive rate but it rises after that, depending on your credit history and borrowing amount. There is also an origination fee with Figure and you only have up to five years to draw on the line of credit.
About
Figure specializes in home equity lines of credit (HELOCs) for homeowners in need of cash and want to use their home equity to draw upon. HELOCs differ from home equity loans in that they offer access to cash for homeowners for a period of time, also known as a draw period. A home equity loan provides a lump sum of cash at one time. HELOCs require homeowners to pay back the amount they borrow and they can decide how much they want to borrow. With a HELOC you can borrow multiple times instead of just once with a home equity loan.
Figure offers HELOCs of between $15,000 and $400,000 for a term of 30 years. That comes with a draw period of two to five years. Homeowners need to have a credit score of 640 to qualify. Higher HELOC amounts require a higher credit score.
Features and Benefits
- Offers HELOCs exclusively
- Funding can take place in as few as five days
- Has fixed rates
- Can borrow up to $400,000 and 85% of home equity
Why we Chose
Figure makes applying and obtaining a HELOC easy through its website and offers fast approval with funding. It also offers fixed rates and requires a minimum credit score of 640. Figure also doesn’t require an in-person appraisal if it’s not required in your state.
Figure does have an origination fee of 4.99% of your initial draw and you have a draw period of two to five years. You can also enjoy a discount by enrolling in autopay.
Pros and Cons
Pros
- Discounts available if you enroll in autopay
- No in-person appraisal needed
- Fast funding and approval process
Cons
- Has one-time loan origination fee
- Draw period lasts two to five years
- Lower borrowing maximum than competitors
| Loan Amounts | $15,000 to $400,000 |
| Terms (Years) | Up to 30 |
| APR | 7.4% to 17.2% |
Frequently Asked Questions
These are some of the most common questions surrounding the best Texas home equity loans.
Navy Federal Credit Union, Rocket Mortgage, and Figure frequently top the list of best home equity loan providers nationally. You can search Texas-based loan providers to find deals. Credit unions often have competitive rates that beat national lenders. Our top pick is LendingTree for its diverse offerings.
Texas does allow home equity loans. Home equity loan rules differ in Texas than in other states. In Texas, you can only have a home equity loan on a second home if your first home loan has been paid in full. You can’t have two home equity loans at the same time. Also in Texas, you can only take out up to 80% of your home’s equity.
Home equity loans can have higher interest rates than HELOCs. You’re also borrowing against your home’s equity or money you’ve already paid toward your mortgage. Taking out a home equity loan also puts your home at risk for foreclosure if you default on payments. Your home serves as collateral in home equity loans. A missed payment could mean the bank will move to foreclose. There are also closing costs associated with home equity loans, and you get locked into a fixed interest rate. Interest rates can fluctuate, and you could get caught in a high-interest loan should the rates fall.
Our Rating Criteria for the Best Texas Home Equity Loans
- Interest Rates and Fees: Assesses the competitiveness of the interest rates offered and evaluates the structure and transparency of fees associated with the loan.
- Loan and Credit Line Options: Reviews the variety and flexibility of the loan products offered, including terms, maximum and minimum borrowing limits, and the availability of both home equity loans and lines of credit.
- Customer Service and Support: Examines the quality and availability of customer support, including access to loan officers, online services, and responsiveness to customer inquiries.
- Application and Approval Process: Evaluates the ease, speed, and transparency of the application process, including online application capabilities and the clarity of the documentation required.
- Repayment Terms: Looks at the range of repayment options available, the flexibility in payment schedules, and any benefits for early repayment without penalties.
- Average Customer Ratings: Gathers average customer satisfaction ratings from various review platforms to gauge overall customer experience.
- BBB Ratings and Accreditation: Checks the Better Business Bureau (BBB) ratings, whether the company is accredited, and the overall BBB grade.
- Financial Stability and Reputation: Considers the financial health and historical reputation of the lender, potentially including ratings from financial rating agencies.
- Educational Resources and Tools: Assesses the availability and quality of educational materials provided by the lender, such as calculators, articles, and guides on home equity and financial planning.
- Access to Additional Services: Looks at whether the company offers additional services such as personal banking, refinancing options, or financial advice, which could be beneficial for comprehensive financial management.
Image Sources: lendingtree.com – navyfederal.org – figure.com – rocketmortgage.com – gtfcu.org