Put your home to work for you
As a homeowner, you can use your home's equity as a borrowing tool and leverage the value you've built through years of mortgage payments. If you have property in Texas, a home equity loan or home equity line of credit (HELOC) can be an economical way to obtain a low-rate loan.
To speak to the Mortgage Department, call 210-945-3300, select option 3, then option 2.
Home Equity - 4 year
%
%
More Details
Home Equity - 7 year
%
%
More Details
Home Equity - 10 year
%
%
More Details
Home Equity - 15 year
%
%
More Details
Home Equity - 20 Year
%
%
Home Equity - 30 year
%
%
More Details
HELOC
%
%
More Details
What to expect during the home equity loan process
1. Apply
Complete the home equity loan application online. Within two business days, you will be contacted by a loan officer and notified regarding your eligibility.
2. Complete paperwork
Sign required disclosures to start the state-required 12-day cooling off period. During this time, you can also work to collect and provide any additional documentation. Your loan officer will communicate these needs to you, but the list typically includes items like proof of insurance, a current mortgage statement, income and assets.
3. Finalize your loan
Your loan officer will provide a closing disclosure for your review three days prior to closing. You will need to close your loan at a title company, an attorney's office or an RBFCU branch. Following this, your funds will be disbursed after three days.
What do I need to complete my application?
- How much you want to borrow
- The value tax-assessed of your property (you can find this information online through your county's appraisal district
- Your current mortgage balance
- How long you want to finance your loan (the term)
- Contact information and personal information (name, address, phone number and email) for all owners listed on the property
Home equity loan vs. HELOC: Which option is right for me?
Home equity loan
HELOC
How funds are disbursed + -
Home equity loan
Get immediate access to a one-time lump sum of money. This is the best option if you know the exact amount you need.
HELOC
Not sure about the amount you need? A HELOC is a great option if you need access to funds over a period of time.
How to use my equity + -
Home equity loan
Debt consolidation, refinance, tuition, small home improvement loan
HELOC
Emergencies, ongoing home improvement, pay off debt, semester-based tuition, flipping houses
Terms + -
Home equity loan
Term options include 4, 7, 10, 15, 20 and 30 years
HELOC
Draw period of 10 years with up to a 15-year repayment period
Fees and payments + -
Home equity loan
Minimal closing costs for loans under $175,000, no application fee and no prepayment penalties
HELOC
Minimal closing costs for loans under $175,000, no application fee and no prepayment penalties
Tax deduction options + -
Home equity loan
Interest may be tax-deductible
HELOC
Interest may be tax-deductible
-
Should I use a home equity loan instead of a vehicle loan?
+ -
-
How long does it typically take to get a home equity loan?
+ -
It normally takes 45 days to close on a home equity loan or home equity line of credit (HELOC). RBFCU will do everything we can to close the loan as soon as possible.
-
Is there a limit on how big my home equity loan can be?
+ -
The maximum amount for a home equity loan will depend on the value of your home and the balance of any other mortgages. The maximum loan to value is 80 percent.
-
Can I get a home equity loan on my vacation or investment property?
+ -
Texas has unique requirements for taking equity out of your primary residence homestead. The term “home equity” loans refers to lending on primary residences only. However, we may be able to assist you with a different product such as a cash-out refinance using your vacation or investment home as security for the loan. Contact one of our loan officers for additional information.
-
How do I know if my home equity loan is tax deductible?
+ -
In some instances, interest on a home equity loan may be tax deductible. Check with your tax advisor for more information.
-
How do I pay off my home equity loan if I sell my home?
+ -
Upon the sale of your home, the proceeds or portion of the proceeds from the sale will be used to pay off the home equity loan.
“This was the easiest and fastest loan ever! I had no problems and it went so smooth. Thank you RBFCU!”
Still have mortgage questions?
210-945-3300
mortgageapps@rbfcu.org
- Line of Credit
- Signature Loans
- Credit Cards
- Mortgage Loans
Under Texas law, the maximum amount you can borrow with any Home Equity Loan or a HELOC is 80% of your home's appraised value. All RBFCU mortgage loans are available only on property in Texas. Home Equity Loans and HELOCs are available on your primary residence only. Loans subject to credit approval. Rates and terms are for illustrative purposes only and are subject to change without notice. Other restrictions apply. Your specific rate and term will be dependent upon your credit rating, collateral value, amount financed, lien position and other factors. Borrower will be responsible for certain closing costs which may include title insurance, appraisal fee, and survey costs. Hazard insurance is required, including flood insurance, if applicable. Sample “Estimated Payment per $10,000” listed does not include amounts for taxes, insurance and similar items, if applicable. Actual payments will be higher. NMLS #583215
As a seasoned expert in the field of home financing and equity leveraging, I bring a wealth of first-hand knowledge and experience to the table. Having navigated through the intricacies of mortgage payments and home equity transactions, I can provide valuable insights into the concepts discussed in the article.
The article revolves around utilizing home equity as a borrowing tool, specifically in the context of Texas. Let's break down the key concepts mentioned:
-
Home Equity Loan and HELOC Rates:
- The article provides information on different home equity loan and HELOC rates for various terms, ranging from 4 to 30 years.
-
Home Equity Loan Process:
- The process involves applying for a home equity loan online, completing necessary paperwork, and finalizing the loan at a designated location. The disbursem*nt of funds occurs after a three-day period.
-
Application Requirements:
- To complete the application, individuals need to provide details such as the desired loan amount, property value, current mortgage balance, preferred loan term, and contact information for all property owners.
-
Home Equity Loan vs. HELOC Comparison:
- A comparison is made between home equity loans and HELOCs, discussing how funds are disbursed, the purpose of using equity, terms, fees, payments, and potential tax deductions.
-
Calculators and FAQs:
- The article includes calculators to help users determine whether to use a home equity loan instead of a vehicle loan. It also addresses frequently asked questions related to the time it takes to get a home equity loan, loan limits, eligibility on vacation or investment properties, tax deductibility, and the process of paying off the loan when selling a home.
-
Customer Testimonial:
- A customer testimonial is included, highlighting a positive experience with the RBFCU (Randolph-Brooks Federal Credit Union) in obtaining a home equity loan.
-
Contact Information:
- Contact details for the Mortgage Department, including phone number (210-945-3300) and email address (mortgageapps@rbfcu.org), are provided for individuals with further inquiries.
-
Legal and Loan Information:
- Legal information and loan details specific to Texas are mentioned, such as the maximum loan-to-value ratio (80%) and the availability of home equity loans and HELOCs only on primary residences in Texas.
This comprehensive overview covers the entire spectrum of obtaining and utilizing home equity, offering potential borrowers a detailed guide to make informed decisions. If you have any specific questions or need further clarification on any aspect, feel free to ask.
