Home Equity Loan Rates in Texas (November 2024)

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity averages $129,000 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.

Home equity loan rates in Texas are slightly below national averages — 7.5% APR for a 10-year term (7.7% nationally) and 7.6% APR for a 15-year term (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 you. For instance, a higher credit score usually results in a lower APR, while a larger loan amount might lead to a higher rate. Repayment terms also play a role in determining your APR. Check out the table below to compare the average APRs of home equity loans in Texas across different loan terms.

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

For instance, a 15-year home equity loan with a 7.6% APR results in a monthly payment of $839 and a total interest of $61,098. In contrast, a 10-year loan with a 7.3% APR has a monthly payment of $1,059 and a total interest of $37,073.

The rate you qualify for depends on your loan-to-value ratio, which compares your mortgage balance 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 instance, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.

A higher LTV ratio means greater risk to lenders, resulting in higher rates. Currently, the average APR for a 15-year equity loan in Texas with an LTV ratio of 80% is 7.5%, compared to 8.3% for a 90% LTV ratio. 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. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates.

In Texas, Atlanta has an average APR of 5.3%, while Huntington has an average APR of 11%. Below is a table showing the average home equity loan rates across Texas cities with different terms.

Home equity loan rates in Texas can differ greatly between lenders due to various factors such as the lender's policies 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%.

To secure the lowest home equity loan rates, it's advisable to compare rates and terms from different lenders. Explore our interactive table to see which lenders provide the most 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.