Home values have soared in and around Houston, providing many Texas homeowners with a large amount of equity in their properties. Even if you just bought your house within the last few years, the value could already have appreciated quite a bit.
You don't have to move in order to take advantage of that equity. Instead, you can use a home equity loan to get low-interest financing for a variety of expenses. Find out how a home equity loan works and how to apply with ACU of Texas.
Home Equity Loans Explained
What is a home equity loan? Also called a second mortgage, it's a loan that is secured using the equity in your property. You receive an upfront lump sum, then make fixed payments over the course of the loan term to repay the balance.
Your loan funds can be used for just about anything, including debt consolidation, home improvement projects, education expenses, vacation, major life events like a wedding or adoption, and more. Interest rates are typically lower than what you would find with a personal loan or credit card because your home is used to secure the loan.
Getting an ACU of Texas Home Equity Loan
The amount you can borrow depends on how much equity you have and how much you can afford to repay each month. With a Texas home equity loan from ACU, you can borrow up to 80% of your home's value, including your mortgage.
That means you'll calculate 80% of the property's fair market value and subtract your current mortgage balance. That number is the maximum home equity loan amount you can apply for.
Once approved, we offer fixed-rate interest so that your monthly payment stays the same. You can spread out payments for 5, 10, or 15 years, plus you're able to pay off your balance early without any penalty.
Benefits of Home Equity Financing
Home equity loans come with unique benefits you won't find with most other types of financing. Here are some of the perks you can expect to enjoy:
- Low interest rate compared to other financing options
- Fixed monthly payment
- No prepayment penalties
- Larger loan amounts available
Reach out to one of our seasoned loan officers to get a sense of how much you could borrow using your home equity.
Ready to achieve your next financial goal with the help of a home equity loan from ACU of Texas?
