HELOC rates in Texas have risen from 4.3% in early 2021 to about 8.7% in November 2024. If this trend continues, homeowners may face higher borrowing costs. Consider securing a HELOC soon to potentially lock in a better rate.
HELOC
Best HELOC Rates in Texas (December 2024)
Updated: December 21, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Texas with an 80% LTV is 8.2%, compared with 8.6% for a 90% LTV.
HELOC rates vary by city in Texas. Spring Branch has an average APR of 7.0%, whereas Cross Roads' is 10.3%.
Different lenders offer varying rates for the same loan types. Smart Financial Credit Union's average APR is 6.0%, whereas Bank of America's is 10.3%.
Current HELOC Rates in Texas
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HELOC Rates in Texas by LTV Ratio
HELOC rates in Texas can vary depending on your loan-to-value ratio and line limit. Lenders consider lower LTV ratios less risky because you have more equity in your home. For instance, an 80% LTV means you've borrowed less against your home's value compared to a 90% LTV, reducing the risk of default on your HELOC.
The table below allows you to filter between different loan amounts, offering a clearer view of what you may qualify for:
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Line Limit:$100,000
| 8.3% | 8.6% |
HELOC Rates in Texas by City
HELOC rates in Texas vary by city due to local housing markets and lender competition. For instance, cities with stable real estate markets may offer lower rates.
Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.
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City:Houston
| $100,000 | 8.6% |
| $50,000 | 8.6% |
HELOC Rates in Texas by Lender
HELOC interest rates in Texas differ among lenders in Texas due to varying pricing strategies and risk assessments. The table below presents the five lenders offering the lowest average APRs, helping you compare competitive rates.
| Smart Financial Credit Union | 6.0% |
| First State Bank | 7.0% |
| Consumers Credit Union | 7.3% |
| Great Southern Bank | 7.3% |
| TruGrocer Federal Credit Union | 7.3% |
HELOC rates today can differ among lenders within the same city. Use the table below to filter lenders by city, compare average APRs and find the best rate available in your area.
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City:Houston
| Smart Financial Credit Union | Credit Union | 6.0% |
| Consumers Credit Union | Credit Union | 7.3% |
| Amerant Bank | Commercial Bank | 7.5% |
| Advancial Federal Credit Union | Credit Union | 7.5% |
| Chevron Federal Credit Union | Credit Union | 7.8% |
| Together Credit Union | Credit Union | 7.8% |
| Houston Federal Credit Union | Credit Union | 7.8% |
| Western Alliance Bank | Commercial Bank | 7.8% |
| Home Bank | Commercial Bank | 7.9% |
| Justice Federal Credit Union | Credit Union | 7.9% |
| First Eagle Federal Credit Union | Credit Union | 8.0% |
| Resource One Credit Union | Credit Union | 8.0% |
| Houston Police Federal Credit Union | Credit Union | 8.0% |
| Brazos Valley Schools Credit Union | Credit Union | 8.1% |
| BOKF | Commercial Bank | 8.1% |
| Premier America Credit Union | Credit Union | 8.3% |
| B C M Federal Credit Union | Credit Union | 8.5% |
| Comerica Bank | Commercial Bank | 8.5% |
| Energy One Federal Credit Union | Credit Union | 8.5% |
| First Horizon Bank | Commercial Bank | 8.5% |
| First National Bank Texas | Commercial Bank | 8.5% |
| JSC Federal Credit Union | Credit Union | 8.5% |
| Regions Bank | Commercial Bank | 8.5% |
| Southwest Airlines Federal Credit Union | Credit Union | 8.8% |
| b1Bank | Commercial Bank | 8.8% |
| Federal Aviation Administration Federal Credit Union | Credit Union | 8.8% |
| Coca-Cola Federal Credit Union | Credit Union | 8.9% |
| Frost Bank | Commercial Bank | 8.9% |
| Chartway Federal Credit Union | Credit Union | 9.0% |
| Navy Federal Credit Union | Credit Union | 9.1% |
| Simmons Bank | Commercial Bank | 9.2% |
| Truity Federal Credit Union | Credit Union | 9.3% |
| Bank of America | Commercial Bank | 9.6% |
| HSBC Bank USA | Commercial Bank | 9.6% |
| Texas Bay Credit Union | Credit Union | 9.6% |
| PNC Bank | Commercial Bank | 9.8% |
| Commerce Bank | Commercial Bank | 9.9% |
| Shell Federal Credit Union | Credit Union | 10.0% |
| Truist Bank | Commercial Bank | 10.1% |
COMPARING HELOC RATES IN TEXAS: BANKS VS. CREDIT UNIONS
HELOC rates in Texas vary between banks and credit unions, with banks typically offering higher rates. For example, commercial banks in Texas have an average APR of 8.5%, while credit unions offer a lower average APR of 8.1%. Credit unions are not-for-profit institutions, which often allows them to provide more competitive rates.
When choosing between the two, consider more than just rates. Banks may offer more convenience and a wider range of services, while credit unions often have better customer service and lower fees. Also, check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
Are there any strategies homeowners can use to lock in a favorable HELOC rate in a rising interest rate environment, and how does a rate lock typically work with HELOCs?
Credit & Mortgage Expert
HELOCS often have variable interest rates, meaning they go up or down with the Federal Funds rate. So if you are worried about rates rising, you should look into a home equity loan or refinancing your home. That way you have a fixed rate that will not change over time.
HELOC Payment Calculator
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Use our Texas HELOC payment calculator to determine your monthly payments based on the amount drawn, loan terms and APR.
Our calculator also provides an amortization schedule, illustrating the division of payments between principal and interest over time. Understanding these details can help you manage your HELOC more effectively.
Texas HELOC Payoff Calculator
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.
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Repayment Period Payment
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- Graph view
- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
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How to Get the Best HELOC Rates in Texas
Finding the best HELOC rates in Texas can save you significant money over your loan's life. For example, a lower rate could reduce monthly payments, freeing up cash for other expenses. To secure competitive rates, consider these five strategies:
Maintain a strong credit score
The average credit score in Texas is 695. Improving it can help secure better rates from lenders.
Compare offers from multiple lenders
Shopping around can reveal competitive rates and help negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lower debt-to-income (DTI) ratios show stability. Paying off debt can improve your chances.
Increase your home equity
More equity lowers lender risk. Paying down your mortgage or making home improvements can help.
Review closing costs and rate caps
Closing costs affect expenses. Understanding rate caps helps manage HELOC adjustments.
HELOC Loan Rates vs. Home Equity Loan Rates in Texas
HELOC interest rates in Texas average 8.3%, while home equity loan rates are lower at 7.4%. The difference is due to the variable rate structure of HELOCs compared to the fixed rates of home equity loans.
- HELOCs are flexible, revolving credit lines with rates that change with the market, making them susceptible to increases in rising interest rate environments, potentially impacting long-term homeowner finances.
- In contrast, home equity loans offer a lump sum with a fixed interest rate, providing stability and predictability, ideal for those who prefer certainty in their financial planning.
When deciding between these options, consider your financial goals and risk tolerance. If you value flexibility and can handle potential rate hikes, a HELOC may suit you. If predictability and stable payments are priorities, a home equity loan might be the better choice. Evaluate your borrowing needs and equity in your home to make an informed decision.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
A cash-out refinance is a HELOC alternative that replaces your existing primary mortgage with a new, larger loan, allowing you to access cash. Unlike HELOCs or home equity loans, cash-out refinances create a new primary mortgage.
For example, if you have a loan backed by the Federal Housing Administration (FHA) and your home is valued at $300K with a $150K mortgage balance, an FHA cash-out refinance for $200K could provide $50K in cash, with new loan payments based on $200K.
FAQ: Best HELOC Rates in Texas
What are the current HELOC rates in Texas and how do they compare to national rates?
Texas's HELOC rates average 8.3%, which is the same as the national average.
What fees are commonly associated with HELOCs in Texas?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in Texas compare to home equity loan rates?
HELOC rates in Texas average 8.3%, while home equity loan rates are lower at 7.4%, especially for those with bad credit.
How do HELOC Rates in Texas vary between banks and credit unions?
Commercial banks in Texas offer HELOC rates averaging 8.5%, while credit unions offer lower rates at 8.1%.
What's the best HELOC rate in Houston? How does it compare to the current HELOC rate in Texas?
Houston's rates average 8.6%, slightly higher than the Texas average of 8.3%.
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 line of credit rates.
This data is accurate as of December 13, 2024.
117Lenders Analyzed
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.