An equity loan is a loan that is secured by a homestead. The funds that are received at closing are disbursed in a lump sum and amortized over the life of the loan. The proceeds can be used for anything that the borrower chooses. The equity of your home is the market value of a home minus any debt on the home.

Equity loans are one of the smartest and most cost-effective ways to borrow. The reason for this is simple! The interest on a home equity loan is usually tax deductible.* The interest you pay on credit cards, student loans, and personal or auto loans is not. And, because these loans are secured by your home, they are often available at a lower interest rate than other types of credit.

In Texas the loan is limited to 80% total loan to value of the market value minus any outstanding liens, and the borrower is limited to one per year. For example, if your home is worth $100,000, and you have a mortgage balance for $50,000, you may be eligible to borrow as much as $30,000. To determine the amount of a home equity loan that you might qualify for, use the
Home Equity Loan Calculator.