- Structure
- Revolving line with a draw period
- Rate
- Usually variable
- Texas limit
- 80% combined loan-to-value
- Minimum draw
- $4,000 per advance in Texas
What it is
A home equity line of credit works like a credit card backed by your house. You draw what you need when you need it and pay interest only on what you have used.
How it works with a broker
A HELOC sits behind your existing mortgage. During the draw period you can borrow, repay and borrow again. After that the balance converts to regular payments.
On a Texas homestead, your first mortgage and HELOC together cannot exceed 80% of the home's value, and each draw must be at least $4,000.
Common questions
Does a HELOC change my first mortgage?
No. Your first mortgage, its rate and its payment stay exactly as they are.
What happens if rates rise?
Your HELOC payment can rise with them. Some lenders let you lock part of the balance at a fixed rate.
Figures shown are typical guidelines and can vary by lender, credit profile and property. They are not an offer or commitment to lend.
Find out what you qualify for.
Answer a few questions and I will come back with real options, usually the same day. It takes about two minutes and does not affect your credit.