The Best HELOC Rates and Lenders in Texas

Homeowners can take out a home equity line of credit (HELOC) based on the amount of equity in their homes. Like credit cards, HELOCs allow you to borrow often, up to a limit specified by the lender. Borrowers can use the funds for various purposes, including home improvement, education and debt consolidation.

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A home equity line of credit helps you finance large and unexpected expenses, and most lenders don’t restrict how you can use the funds.

While looking for the best HELOC for your needs, shopping around to secure an option with the best terms is essential. Overall, Bank of America offers the best HELOC in Texas due to its friendly rates and discounts. However, the best lender will depend on various factors, including your credit score.

Home Equity Line of Credit (HELOC) Rates for 2023

Comparing rates and terms across lenders can help secure the best HELOC option for your financial goals.

The following table provides an overview of home equity line of credit rates and other lender information based on MoneyGeek’s analysis as of May 2022. Lenders' rates change frequently, and MoneyGeek will update these accordingly.

  • Lender
    APR
    Loan Amount
    Min. Credit Score Requirement
    Repayment Terms
    Annual Fees
    Pre-Approval Time
  • 3.75% to 18%

    $25,000 to $1,000,000

    660

    10-year draw period
    and 20-year repayment period

    None

    N/A

  • Not specified

    Not specified

    Not specified

    Not specified

    Not specified

    Not specified

  • 1.99% special
    introductory variable
    APR for 6 months,
    then as low as
    4.35% variable

    $25,000 to $1,000,000

    Not specified

    10-year draw period,
    20-year repayment period

    Not specified

    Not specified

  • 3.65% to 8.80%

    $15,000 to $750,000

    730

    10-year draw period,
    unspecified repayment period

    $90

    Not specified

  • 4.65% to 9.99%

    $35,000 to $300,000

    620

    10 to 30 years

    None

    1 to 2 weeks

  • Starting at 3.99%

    $10,000 to $500,000

    Not specified

    10-year draw period
    and 20-year repayment period

    $75

    Not specified

  • Starting at 4.64%

    $10,000 to $500,000

    Not specified

    10-year draw period
    and 20-year repayment period

    None

    24 hours

  • Starting at 3.50%

    $15,000 to $400,000

    620

    5 to 30 years

    3% to 4.99%

    24 hours

  • Starting at Prime - 0.50%

    Starting at $17,500

    Not specified

    10-year draw period,
    15-year repayment period

    $50

    Not specified

  • Starting at 3.34%

    Starting at $25,000

    740

    Not specified

    $50

    Not specified

  • 3.49% for 6 months
    (4.08% thereafter)

    Starting at $5,000

    Not specified

    15-year draw period
    with 15-year repayment period

    None

    24 hours

  • 3.75% to 10.63% variable

    $10,000 to $500,000

    Not specified

    10-year draw period,
    and then 20 years for repayment

    None

    Not specified

MoneyGeek’s Picks for Best HELOC Lenders in Texas

MoneyGeek determined the best HELOC lenders in Texas to help consumers quickly find the perfect option for their needs.

Typically, not many lenders provide HELOCs, and most of the companies that do are often national banks. To qualify, borrowers need to have good credit scores.

If you submit your HELOC application to one of the national lenders and it gets rejected, check whether your local credit union offers HELOCs.

Best Overall HELOC Lender in Texas: Bank of America


  • Bank of America

    Bank of America has an introductory APR of 1.99% for the first six months.


    • 1.99% special introductory variable APR for 6 months, then as low as 4.35% variableAPR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees
    • Not specifiedPre-Approval Time

    on Bank of America Website

Best HELOC Lender for Good Credit in Texas: U.S. Bank


  • U.S. Bank

    U.S. Bank customers receive a $750,000 maximum limit.


    • 4.20% to 9.35%APR Range
    • $15,000 to $750,000Loan Amount Range
    • 10-year draw period; unspecified repayment periodRepayment Terms
    • $90Annual Fees
    • Not specifiedPre-Approval Time

    on U.S. Bank Website

Best HELOC Lender for Bad Credit in Texas: Figure


  • Figure

    Offers comprehensive online customer support and 24-hour pre-approval.


    • From 6.55% to 15.54%APR Range
    • $15,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time

    on Figure Website

Best HELOC Lender for Competitive Rates in Texas: PenFed


  • PenFed Credit Union

    PenFed Credit Union provides an attractive introductory APR of 0.99%.


    • 0.99% for 6 months; 4.25% to 18% thereafterAPR Range
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • N/APre-Approval Time

    on PenFed Credit Union Website

HELOC vs. Home Equity Loans

Home equity loans and HELOCs offer easy ways to finance major or unexpected expenses using the value of your home as collateral. Before determining which of the two suits your needs, you should understand their differences.

Home equity loans or HELOANs offer borrowers a lump sum. HELOANs feature fixed interest rates and repayment amounts for the duration of the loan. They may be ideal for borrowers who need a loan with predictable repayment terms.

Meanwhile, HELOCs offer revolving credit the same way credit cards do. They feature variable interest rates and repayment periods. Borrowers can withdraw funds as often as required, provided they do not exceed the lender’s limits. A home equity line of credit loan is ideal for homeowners who need more flexibility around the repayment terms.

  • HELOC
    Home Equity Loan
  • Interest Rate

    Adjustable interest rate,
    but fixed-rate options are available

    Fixed interest rate

  • Monthly Payment

    Changes depending on
    the amount of money borrowed

    Fixed monthly payments

  • Repayment Terms

    During the draw period, borrowers pay
    interest on the money they borrowed;
    after the draw period, they repay any
    principal owed in addition to interest

    Repayment starts as soon as
    the money is given to the borrower

  • Fund Disbursements

    Line of credit

    Lump sum delivery

How to Apply for a HELOC

Applying for a home equity line of credit is easy. Most lenders allow you to submit your application online and await approval. MoneyGeek recommends taking the following steps when applying for a HELOC.

1

Determine how much you need

Before submitting your HELOC application, you must understand how much you need and have a plan for how you will use the funds. Most homeowners use the funds to finance home renovations, education, medical bills and debt consolidation.

2

Assess your financial standing

Review your financial situation and determine whether you can meet your preferred lender’s minimum requirements. For instance, you may need to check your income, loan-to-value ratio and credit score, as these will determine your rates.

3

Shop around and compare lenders

Once you are sure of the credit line amount you need, compare HELOC lenders to find the best option. Check the rates, repayment terms, discounts and requirements.

4

Apply

Most HELOC lenders allow you to apply online. However, some may ask you to call or apply in person. You will need to provide details like your personal information, proof of income and assets owned.

5

Use funds wisely

Once you receive the funds, use them for their intended purpose. Always keep in mind that if you fail to make repayments, you may lose your home.

Frequently Asked Questions About HELOCs

What is a home equity line of credit? Understanding how HELOCs work may be challenging for new borrowers. MoneyGeek responded to frequently asked questions to ensure you choose the best HELOC for your financial goals.

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