Home Equity Loan Rates in Texas

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity averages $129,000 in Texas. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Home equity loan rates in Texas are slightly below national averages — 7.5% APR for a 10-year term (7.7% nationally) and 7.6% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in Texas, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.

Key Takeaways

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Higher LTV ratios lead to higher rates. The average APR for a 15-year HEL in Texas with an 80% LTV is 7.5%, compared to 8.3% for a 90% LTV.

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HEL rates vary by city in Texas. For example, for 15-year loans, Wichita Falls has an average APR of 5%, whereas Royse City's is 9.5%.

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Different lenders offer varying rates for the same loan types. Wichita Falls Teachers Federal Credit Union's average APR is 4.8%, whereas BOM Bank's is 11%.

MoneyGeek examined 117 different banks and credit unions in Texas using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.

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This data is accurate as of November 2024.

117Lenders Analyzed

Current Home Equity Loan Rates in Texas

The current average APR for a 15-year home equity loan in Texas is 7.6%, but several factors might affect what lenders offer you. For instance, a higher credit score usually results in a lower APR, while a larger loan amount might lead to a higher rate. Repayment terms also play a role in determining your APR. Check out the table below to compare the average APRs of home equity loans in Texas across different loan terms.

10Year7.5%
15Year7.6%
5Year7.1%

Interest rates for home equity loans change daily. Monitoring these rates can help you pay less in interest over the life of the loan, saving money. A home equity loan at a lower rate can also assist in consolidating high-interest debts, reducing overall interest payments.

For instance, a 15-year home equity loan with a 7.6% APR results in a monthly payment of $839 and a total interest of $61,098. In contrast, a 10-year loan with a 7.3% APR has a monthly payment of $1,059 and a total interest of $37,073.

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HOME EQUITY LOANS VS. HELOCS IN TEXAS

Home equity loans and HELOCS are popular options for homeowners. Home equity loans and home equity lines of credit (HELOC) are ways for homeowners to tap into their home's equity. In Texas, home equity loan rates average 7.4%, offering fixed rates, while HELOC rates in Texas are variable, averaging 8.5%.

Home equity loans have fixed rates, providing predictability, whereas HELOCs come with variable rates that can fluctuate. Fixed rates mean your monthly payments remain the same, which can help with budgeting. In contrast, variable HELOC rates in Texas might start lower but can increase, potentially leading to higher payments.

Home Equity Loan Rates by LTV Ratio

The rate you qualify for depends on your loan-to-value ratio, which compares your mortgage balance to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For instance, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.

A higher LTV ratio means greater risk to lenders, resulting in higher rates. Currently, the average APR for a 15-year equity loan in Texas with an LTV ratio of 80% is 7.5%, compared to 8.3% for a 90% LTV ratio. Use the table to see what average home equity loan rates you might qualify for based on your LTV ratio.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:10Year
7.3%8.2%

Home Equity Loan Rates by City in Texas

Average APRs also vary between cities in Texas. Cities with higher living costs may see slightly higher rates, as lenders face increased operational expenses. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates.

In Texas, Atlanta has an average APR of 5.3%, while Huntington has an average APR of 11%. Below is a table showing the average home equity loan rates across Texas cities with different terms.

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City:
City:Houston
10Year7.6%
15Year7.7%
5Year7.3%

Home Equity Loan Lenders in Texas

Home equity loan rates in Texas can differ greatly between lenders due to various factors such as the lender's policies and market strategies. For instance, Wichita Falls Teachers Federal Credit Union offers the lowest average APR at 4.8%, while BOM Bank has the highest at 11%.

To secure the lowest home equity loan rates, it's advisable to compare rates and terms from different lenders. Explore our interactive table to see which lenders provide the most competitive rates in your city.

Data filtered by:Results filtered by:
City:
City:Houston
Guaranty Bank & Trust, N.A.5.3%
Southwest Airlines Federal Credit Union5.5%
Federal Aviation Administration Federal Credit Union5.8%
Investex Credit Union6.1%
American Bank6.1%
Synergy Federal Credit Union6.3%
Houston Texas Fire Fighters Federal Credit Union6.5%
Chartway Federal Credit Union6.5%
Texas Bay Credit Union6.8%
Houston Police Federal Credit Union6.8%
Greater Texas Federal Credit Union6.9%
First Community Credit Union7.0%
Smart Financial Credit Union7.1%
MemberSource Credit Union7.2%
Regions Bank7.3%
Frost Bank7.3%
Cy Fair Federal Credit Union7.4%
Consumers Credit Union7.4%
JSC Federal Credit Union7.4%
Brazos Valley Schools Credit Union7.5%
BP Federal Credit Union7.5%
Navy Federal Credit Union7.6%
Chevron Federal Credit Union7.7%
Advancial Federal Credit Union7.7%
PrimeWay Federal Credit Union7.8%
Truity Federal Credit Union7.9%
Gulf Coast Educators Federal Credit Union7.9%
Credit Human Federal Credit Union8.1%
First Eagle Federal Credit Union8.2%
Together Credit Union8.2%
Premier America Credit Union8.3%
Justice Federal Credit Union8.4%
Coca-Cola Federal Credit Union8.4%
Bank of Houston9.0%
Commerce Bank9.0%
BOKF9.2%
PNC Bank9.6%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Consider credit unions when exploring lender options for home equity loan rates in Texas. They often offer lower APRs, averaging 7.2% compared to 8.2% at commercial banks. Keep in mind that credit unions may have stricter membership requirements, but the potential savings can be worth the effort.

How to Get the Best Home Equity Loan Rate in Texas

Securing the best home equity interest rates can lower your monthly payments and total borrowing costs, allowing more financial flexibility. Imagine using funds saved from better rates to renovate your kitchen or pay off debts. To achieve the best home equity loan rates in Texas, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Government Employees Federal Credit Union offers an average APR of 5.3%, while SkyOne Federal Credit Union offers 9.8%. Comparing different home equity loan lenders in Texas can help you find better rates.

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    Increase your home's equity

    Having more equity in your home can result in more competitive rates from lenders. Texas homeowners can increase their home's equity by adding outdoor kitchens or pools.

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    Improve your credit score

    Increasing your credit score can lead to more competitive home equity loan rates. Pay bills on time and reduce credit card debt to improve your credit score. The average credit score in Texas is 695, according to Experian.

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    Decrease debt-to-income ratio

    A lower debt-to-income (DTI) ratio — the percentage of your monthly income that goes toward paying debts — can lead to better rates as lenders see you as a less risky borrower.

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Debt-to-Income Ratio Calculator

Provide your income and recurring payments to calculate your DTI.

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FAQ About Home Equity Loan Rates in Texas

MoneyGeek addresses common questions about home equity loan rates in Texas, providing clear and reliable information. By focusing on the specifics of these rates, homeowners can better understand their options and make informed decisions. The guidance offered helps demystify the process, ensuring readers feel confident in navigating their home equity choices.

What is the interest rate on a home equity loan in Texas?

How do you calculate your home equity in Texas?

Do home equity loan rates vary between cities in Texas?

Does a home equity loan in Texas have tax benefits?

What are possible drawbacks of securing a home equity loan in Texas?

How long does it take to get a home equity loan in Texas?

How do you get a home equity loan in Texas?

What can I use my funds for? Are there any home equity loan use restrictions in Texas?

Can you only take out a home equity loan in Texas on your primary residence?

What other home equity products can you consider if you want to tap into your home's equity in Texas?

What's the difference between a HELOC and a home equity loan?

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.


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