Put your home to work for you

As a homeowner, you can use your home's equity as a borrowing tool and leverage the value you’ve built through years of mortgage payments. If you have property in Texas, a home equity loan or home equity line of credit (HELOC) can be an economical way to obtain a low-rate loan and enjoy a possible federal tax deduction in the process.

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What to expect during the home equity loan process

1. Apply

Complete the home equity loan application online. Within two business days, you will be contacted by a loan officer and notified regarding your eligibility.

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2. Complete paperwork

Sign required disclosures to start the state-required 12-day cooling off period. During this time, you can also work to collect and provide any additional documentation. Your loan officer will communicate these needs to you, but the list typically includes items like proof of insurance, a current mortgage statement, income and assets.

3. Finalize your loan

Your loan officer will provide a closing disclosure for your review three days prior to closing. You will need to close your loan at a title company, an attorney’s office or an RBFCU branch. Following this, your funds will be disbursed after three days.

Home equity loan vs. HELOC: Which option is right for me?

How funds are disbursed


Home equity loan

Get immediate access to a one-time lump sum of money. This is the best option if you know the exact amount you need.

HELOC

Not sure about the amount you need? A HELOC is a great option if you need access to funds over a period of time.

How to use my equity


Home equity loan

Debt consolidation, refinance, tuition, small home improvement loan

HELOC

Emergencies, ongoing home improvement, pay off debt, semester-based tuition, flipping houses

Terms


Home equity loan

Term options include 4, 7, 10, 15, 20 and 30 years

HELOC

Draw period of 10 years with up to a 15-year repayment period

Fees and payments


Home equity loan

Minimal closing costs for loans under $125,000, no application fee and no prepayment penalties

HELOC

Minimal closing costs for loans under $125,000, no application fee and no prepayment penalties

Tax deduction options


Home equity loan

Interest may be tax-deductible

HELOC

Interest may be tax-deductible

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FAQ FAQs

More FAQs

“This was the easiest and fastest loan ever! I had no problems and it went so smooth. Thank you RBFCU!”

Still have mortgage questions?

Total debts against the homestead, including HELOCs, are limited to 80 percent of the fair market value of the homestead. 30-year term only available for first liens. 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.