With the equity you’ve built up in your home over the years, you could be sitting on a lot of money! Tap into the money in your home with a home equity loan that will keep your budget in line.
What is a home equity loan?
A home equity loan is a one-time loan for a fixed dollar amount, at a fixed interest rate, with a fixed term of repayment. This type of loan has a pre-determined monthly repayment amount and an amortization schedule for up to 15 years. Home equity loans are great for specific, one-time purchases like a new car or a home remodeling project.
How do I calculate my equity?
Example of TX Home Equity Calculation
$200,000 Current Value
X 80% Loan to Value Limit
= $160,000 Potential Equity
– $100,000 Current Mortgage
= $ 60,000 Maximum Equity Available
The Texas Difference (80% LTV Rule)
In Texas, the state requires that the sum of a home equity loan plus any other mortgage balance the homeowner has MUST be equal to or less than 80% of the home's appraised value. In other words, what you have left to pay on your mortgage loan, plus any other loans you have borrowed against your home can't be more than 80% of the current market value of your home. If we look at the example and take the current appraised value of the home, which is $200,000, 80% (the Texas limit) of that is $160,000. Subtract what you still owe on your mortgage $100,00 and your equity is $60,000. That would be $60,000 in equity that you could borrow.
What can I use the money for?
This low-rate financing option is perfect for large expenses like a home improvement project, consolidating high-interest debt, financing a college education or taking a dream vacation.
How can I apply?
Things to note:
As real estate prices continue to rise year after year, investing in raw land may be a wise financial decision. You may hold onto the land for future development or look to sell the land as the property’s value increase. With great rates and options you can't go wrong!
- Up to 80% financing available
- Term options up to 15 years
- No prepayment penalties
- Arrange for automatic payments
You know what you're looking for in a new home, but do you know what to look for in a mortgage loan? We know that the journey to a new home often comes with twist and turns and that's why we have partnered with BALANCE to be able to guide you in the right direction. You can talk to a certified financial counselor to help you figure out where to start and everything beyond, answering any questions you may have.
APPLY NOW through CU MEMBER'S MORTGAGE
Our home mortgage partner, CU Member’s Mortgage can help you get the home of your dreams.
- Fixed-Rate Mortgages with terms up to 30 years
- 5/1 Adjustable Rate Mortgages
- FHA Loans
- Federal VA Loans
- Pre-approval available
- Online application
Speak to a Mortgage Loan OfficerDon't hesitate to call CU Member's Mortgage with questions about rates or your mortgage loan. CALL 1-800-607-3474 Monday thru Friday 8 am - 5 pm or by email to firstname.lastname@example.org.
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