Home Equity Loan Rates in Texas (January 2025)

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity averages $123,000 in Texas. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Texas home equity loan rates are below national averages, with a 10-year term at 7.4% APR compared to 7.7% nationally, and a 15-year term at 7.6% APR compared to 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Texas, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.

The current average APR for a 15-year home equity loan in Texas is 7.6%, but several factors might affect what lenders offer. For instance, a higher credit score can lead to a lower APR, while a larger loan amount might result in a higher rate. Repayment terms also play a role in determining the rates. Compare the average APRs of home equity loans in Texas across different loan terms to see how these factors might affect your financial decisions.

Interest rates for home equity loans change daily. Keeping track of these rates can help you pay less in interest over the life of the loan, saving you money. If you have high-interest debts, a home equity loan at a lower rate can assist in consolidating those debts and reducing overall interest payments.

For example, a 15-year home equity loan with a 7.6% APR results in a monthly payment of $466 and a total interest of $33,943. In contrast, a 10-year loan with a 7.5% APR has a monthly payment of $594 and a total interest of $21,221.

The rate you qualify for depends on your loan-to-value ratio, which measures how much you owe on your mortgage compared to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For example, if your home is valued at $300,000 and you owe $240,000 on your mortgage, your LTV ratio is 80%.

A higher LTV ratio means greater potential risk to lenders, resulting in higher rates. Currently, the average APR of a 15-year equity loan in Texas with an LTV ratio of 80% is 7.4%. It's 8.3% for an LTV ratio of 90%. Use the table to see what average home equity loan rates you might qualify for based on your LTV ratio.

Average APRs also vary between cities in Texas. Cities with higher living costs may see slightly higher rates, as lenders face increased operational expenses. Differences in property taxes or local fees can influence rates, affecting overall borrowing costs.

In Texas, Mount Vernon has an average APR of 5.3%, while Hemphill has an average APR of 11.0%. Below is a table that shows the cities in Texas and their average APRs for home equity loans with different terms.

Home equity loan rates in Texas can vary widely depending on the lender's policies, risk assessments, and market strategies. For instance, Wichita Falls Teachers Federal Credit Union offers the lowest average APR at 4.8%, while BOM Bank has the highest at 11%. Comparing rates and terms from various lenders is crucial to finding the best possible deal.

To help you secure the lowest home equity loan rates, explore our interactive table showcasing lenders in Texas offering competitive rates in your city.

Securing the best home equity interest rates can lower your monthly payments and total borrowing costs, allowing more financial flexibility. Imagine using funds saved from better rates to renovate your kitchen or pay off debts. To achieve the best home equity loan rates in Texas, consider these strategies:

MoneyGeek addresses common questions about home equity loan rates in Texas, providing clear and reliable information. By focusing on the specifics of these rates, homeowners can better understand their options and make informed decisions. The guidance offered helps demystify the process, ensuring readers feel confident in navigating their home equity choices.