Home Equity Line of Credit Tips, Info & FAQs
A variable-rate line of credit secured by the equity in your home
Whether you are in the San Antonio, Boerne, or Fort Worth area, our Home Equity Line of Credit (HELOC) might be the perfect solution to finance your dreams.
Requirements: Member must have at least $30K of equity in the home.
What is a HELOC?
A HELOC stands for Home Equity Line of Credit. This line of credit loan is based on the equity you have built in your home. In other words, it’s the difference between what your home is worth and what you have left to pay.
For example, if you owe $200,000 on your home, but it appraises at $250,000, this means you have $50,000 of equity in your home. You are able to borrow against this equity with a HELOC. However, you may not be able to borrow all $50,000 of your equity. Other credit factors and lender limits are included in determining the exact borrowed amount.
In Texas, you may borrow up to 80% of its appraised value.
Using Your Home’s Equity
Once you obtain a HELOC, you can use the credit line for just about anything. For example, if you’ve been dreaming about adding a pool or updating your kitchen, a HELOC could easily fund those projects. Plus, many times, these improvements could further increase the value of your home.
You are even able to use the equity to consolidate those high-interest credit cards you’ve accrued or pay for your child’s education. The options are endless. Plus, since HELOCs are secured loans, the interest rates are typically much lower than unsecured loans (i.e., Personal Loans or Credit Cards).
HELOC vs. Home Equity Loan
A HELOC is a line of credit, meaning you will have access to your funds as you need them. With a HELOC, you only pay back what you use on your line of credit. Think of it as a credit card. If your approved credit card limit is $10,000, but you only spend $1,000 – you only have to pay back the $1,000 (the other $9,000 is still available to use if and when you need it). See our FAQs below for specifics related to a United Texas Home Equity Line of Credit.
In contrast, with a Home Equity Loan, you’ll receive the full loan amount upfront in one lump sum, and you’ll have set monthly payments to pay back the loan.
Both options offer different benefits. For example, if you have ongoing repairs or expenses, the convenience of borrowing as needed with a HELOC may be the best option. If you are putting in a new pool and know the upfront cost, a lump sum Home Equity Loan may work best.
We’re Here to Help!
If you’d like to learn more about a Home Equity Line of Credit or would like to apply for one, stop by any of our branch locations or give us a call at 1-800-531-8456. Our Home Loan Experts are ready to help!
From our Blog
What are the eligibility criteria to get a Home Equity Line of Credit?
1. All applicants applying for a Home Equity Line of Credit must be listed as property owners.
2. The subject property must have a homestead exemption.
3. United Texas does not process HELOCs on condos, mobile homes, or rental properties.
4. Texas properties only.
5. No Home Equity loan in the previous 12 months or currently owing on. Only one home equity loan/line of credit per homestead per member is allowed in Texas.
6. Must be an owner-occupied, one or two-family home.
7. Must have at least 20% appraised value owned in the home.
How much can I borrow?
A HELOC cannot exceed 80% of the Fair Market/ appraised value.
A United Texas Credit Union HELOC must be a minimum of $30,000 and cannot exceed $200,000.
Are there any fees?
Yes, there are approximately $675 in fees associated with a HELOC, in addition to any applicable appraisal fees (not all loans require an appraisal).
What are the appraisal requirements?
Loan amounts between $30,000.00 to $100,000.00 do not require an appraisal.
Loan amounts in excess of $100,000 will require an appraisal. Fees are non-refundable and depend on the type of appraisal required.
Are there any escrow requirements?
No escrows will be provided for this type of loan. Ask us for more details.
Where can I close my home equity line of credit?
You may only close your loan at three locations: a title company, an attorney’s office or at the office of the lender.
Once approved, how do I access the funds?
When the loan is closed, the first draw must be at least $10,000. Subsequent draws must be at least $4,000.
How long do I have to pay it back?
The loan term is up to 20 years (240 months). Five years is the draw period and 15 years is the repayment period.
Can I choose my loan payment date?
All HELOC loan payments are due by the first of each month. You may make your payment at any time prior to the due date without a prepayment penalty.
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Home Equity Line of Credit Rates & Calculator
Information and interactive calculators are made available to you as self-help tools for your independent use. We cannot and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. Payments do not include amounts for taxes and insurance premiums, if applicable. The actual payment obligation will be greater.
Home Equity Line of Credit (Texas only)
|$30,000 - $200,000**
|as low as 7.75% APR*
|up to 240 months
*APR means Annual Percentage Rate. Rates are effective as of August 1, 2023. The specific rate and term will be dependent upon your credit rating, collateral value, amount financed, and other factors. Rates and terms are subject to change without prior notice; other restrictions may apply. Payment per $1,000 is approximately $8.21 per month for 240 months at 7.75% APR.
**Independent appraisal (at member's expense) required on a Home Equity Line of Credit over $100,000.
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Home Equity Line of Credit Why United Texas
- Access funds from your home equity
- Lower interest rates than a personal loan or credit card
- Terms up to 20 years
- Borrow up to 80% of the appraised value
- Only pay on what you borrow/advance
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Home Equity Line of Credit How it Works
How it Works
To get your home equity line of credit, you’ll need to become a United Texas member. All that requires is a savings account with a minimum $5 opening deposit.
To process your home equity line of credit application, we’ll need the following documents:
- Completed loan application
- Your most recent W-2 and most recent pay stub. If you’re self-employed, we’ll need all of the pages from your past two years of tax returns.
- Your last two months of bank statements.
- The most recent copy of your mortgage statement (if applicable).
- The declarations page of your homeowner’s insurance policy.
- Your most recent property tax appraisal statement.
- The most recent copy of the Deed of Trust from your last home loan.
Please drop off your documents at any of our convenient locations, or mail them to United Texas Credit Union, 5500 UTSA Boulevard, San Antonio, TX 78249. We’ll start processing your application as soon as we receive these documents. Depending on the amount you want to borrow and other factors, you may need to arrange an appraisal of your property.
Once you’re approved, we’ll make arrangements with you to close the loan.
Related Products & Services
If you have questions or want more information, please contact one of our Financial Services Officers at (210) 561-4500 or toll-free at (800) 531-8456.
United Texas Credit Union is a lender licensed under the National Mortgage Licensing System and Registry under registration number 516820.
Richard J. Avina – NMLS ID: 1249045
Kris Boiles – NMLS ID: 555136
Jesus Castillo – NMLS ID: 321443
Gordon Chin – NMLS ID: 1381781
Karina Hernandez – NMLS ID: 1774893
Shelby Johnson – NMLS ID: 2252687
Jon Llanes – NMLS ID: 1754564
Adolfo Martinez – NMLS ID: 567891
Lisa Rakus – NMLS ID: 1707677
Jorge A. Rocha, Jr. – NMLS ID: 513941
Layton Shelton – NMLS ID: 2252700
Juana Torres – NMLS ID: 1427693
Normal credit criteria apply.
Our standard online loan application is not valid for Home Equity Loans.