Updated: November 16, 2024
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The best HELOC lender in Texas is Truist Bank, with a MoneyGeek score of 95 out of 100. The runner-up is Bank of America, with a MoneyGeek score of 94 out of 100.
The average HELOC limit in Texas is $137,212. How much you can borrow often depends on factors like your home's equity, outstanding mortgage balance and credit score.
Comparing rates can help find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Texas, updated weekly to assist you in your journey.
The average HELOC balance in Texas in the third quarter of 2023 is $55,944. This figure is based on data from Experian.
Calculating your HELOC payments is key to managing this type of debt effectively. Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR, and loan terms. The full amortization schedule provided will show how much of your payments go toward interest and principal over time.
This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.
Draw Period Payment
Repayment Period Payment
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In Texas, Home Equity Lines of Credit (HELOCs) are popular due to their flexibility and the control they offer over line amounts and repayment timelines. This financial tool allows homeowners to manage their finances more effectively by accessing funds as needed.
Let's explore some common uses for a HELOC, which can help you make the most of this financial option.
Home improvements or renovations
A HELOC is ideal for home improvements, offering flexibility as project costs evolve. It allows homeowners to access funds as needed, ensuring projects can adapt to changing budgets and unforeseen expenses.
Consolidating high-interest debt
With average 2023 consumer debt in Texas at $95,537, a HELOC can simplify debt consolidation. It offers lower interest rates, reducing monthly payments and streamlining finances.
Funding education expenses
Using a HELOC for education is smarter than high-interest loans. It covers tuition, books, and housing, offering lower rates and flexible repayment options, making it a practical choice for managing educational costs.
Investment properties
A HELOC can finance investment properties, providing liquidity for purchases or renovations. Finding the best HELOC lenders for investment property ensures competitive rates and favorable terms, maximizing investment returns.
Understanding the steps to apply for a HELOC in Texas can help you navigate the process with ease. We've broken down this journey into six steps below.
Reviewing your financial health is essential before applying for a HELOC. Check your credit score, debt-to-income ratio, and home equity. In Texas, the average credit score is 695 in the third quarter of 2023 based on Experian data. This score can influence your chances of HELOC approval.
Comparing HELOC rates in Texas can help you secure the best deal. Look into lender features like repayment terms, fees, and the option for a fixed-rate HELOC. These factors can significantly impact your overall loan experience.
Preparing the necessary documents can streamline your HELOC application. Commonly required documents include proof of income, recent tax returns, and information on your mortgage and home value. Having these ready can expedite the process.
Most lenders offer online application options, but you can also apply in-person if a branch is available. Ensure all information is accurate to avoid delays. Double-check for errors or omissions before submission.
Some lenders may require a home appraisal to assess your home's current market value. This process involves a professional evaluation of your property's worth, which can affect your HELOC terms.
The approval process for a HELOC can take two to six weeks. Once approved, you'll proceed to closing, which involves signing documents and potentially paying closing costs. Some lenders may cover part of these costs.
The average HELOC limit in Texas for the third quarter of 2023 is $137,212, according to Experian. The maximum amount you can borrow is generally tied to the equity you have in your home. The more equity you have, the higher your potential credit limit.
Check out the table below to see the range of credit lines offered by Texas lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| HSBC Bank USA | Up to $500,000 |
| PNC Bank | $10,000 to $1,000,000 |
| Regions Bank | $10,000 to $500,000 |
| Truist Bank | Up to $500,000 |
When shopping for a HELOC, most people focus only on the interest rate. Instead, you should focus on the annual percentage rate (APR) as that is the true cost of what you are paying back. Also consider any fees the lender may be charging you. A lower rate with higher fees can be deceptive.
Truist Bank is the best HELOC lender in Texas with a MoneyGeek score of 95 out of 100. It excels in customer service and education, offers an efficient application process and quick approval, and is credible and transparent about its HELOC terms and process.
A bad credit score is generally below 580 for FICO scores and between 300 and 600 for VantageScore. When looking for the best HELOC lenders for bad credit, consider lenders that offer flexible terms, lower fees and are willing to work with lower credit scores.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender in Texas.
Common fees associated with HELOCs include origination fees, annual fees, application fees and early closure fees.
The typical draw period for HELOCs usually lasts 10 years, but some lenders may offer more flexible options.
Look for lenders that offer fixed-rate HELOC options or allow interest-only payments during the draw period for flexible repayment options.
MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.
Our analysis was completed in October 2024 and considered different banks and credit unions in Texas from S&P Global's SNL Depository Rates dataset.
About Zachary Romeo, CBCA
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.
