Home >> Mortgage Resource Center >> Home Equity and HELOCs

Home Equity Loans & Lines of Credit

RBFCU has been helping members save money for over 60 years!

Did you know that as a homeowner, you can use your home's equity as a borrowing tool? A Home Equity Loan product can be an economical way to obtain a low-rate loan and enjoy a possible federal tax deduction in the process.1 At RBFCU, we offer home equity loans and home equity lines of credit (HELOC).

Home Equity Loans vs. HELOCs
In order to decide what loan option is right for you, it's important to understand the difference between the two.

  Home Equity Loan HELOC
Ideal for: Those who need immediate access for a specific amount for expenses such as:
• Debt consolidation
• Tuition
• Vacation
Those who need access to funds now and in the future for expenses such as:
• Emergencies
• Ongoing home improvements
• Tuition
Rate: Fixed rate, monthly payments that will not fluctuate as low as 2.7% APR Variable rate as low as 2.75% APR
Financing: Up to 80 percent of fair market value2 Up to 80 percent of fair market value2
Term: Term options include 4, 7, 10, 15, 20 and 30 years3 (View our current rates and payment examples) Draw period of 10 years with up to a 15-year repayment period. (View our current rates)
Fees & Closing Costs: • Generally no closing costs4
• No application fee
• Generally, no closing costs4
• No application fee
Penalties: No prepayment penalties No prepayment penalties
Payment options: Ability to arrange automatic payments Ability to arrange automatic payments
Tax Deductions: Interest may be tax-deductible1 Interest may be tax-deductible1
Get Started! Apply Online for a Home Equity Loan or HELOC.

If you are applying for a HELOC, please read these Home Equity Line of Credit disclosures.

1 Consult a tax advisor about your specific situation.

2 Total debts against the homestead, including HELOCs, are limited to 80 percent of the fair market value of the homestead.

3 30-year term only available for first liens

4 Borrower will be responsible for certain closing costs. If required, these closing costs may include title insurance, appraisal fee and survey costs. Hazard insurance is required.

Home Equity Loans and HELOCs are subject to credit approval. Rates and terms are subject to change without notice. All RBFCU mortgage loans are available only on property in Texas. Home Equity loans and HELOCs are available on your primary residence only. As a safeguard, a 12-day cooling-off period is required by Texas law before Home Equity Loans or HELOCs may be closed. There is also a three-day right of rescission after closing before the funds may be disbursed. Minimum loan amount for a Home Equity Loan is $5,000.

For HELOCs, a minimum $4,000 draw amount is required. No draws are allowed on a HELOC when the HELOC balance is greater than 50 percent of the fair market value of the homestead, as determined when the HELOC was originally granted (even if additional credit limit is available).

HELOC Minimum Payment Requirements: Your minimum monthly payment will be calculated after each credit advance, and will be $14.00 per $1,000.00 of the outstanding balance after each advance rounded up to the nearest $1,000.00. Your payment amount will remain the same unless you obtain another credit advance. We will recalculate your payment each time you obtain an advance.

Ex: a HELOC with $50,000 balance will require a $700 payment at the time of the draw ($50,000 balance ÷ 1,000 = 50 x $14 = $700)

NMLS #583215.