How Home Equity Works
HELOC vs. Home Equity Loan
Two powerful ways to tap your equity—each with distinct advantages. Let’s find which one fits YOUR situation best.
HELOC
A revolving line of credit secured by your home. Borrow what you need, when you need it—pay interest only on what you use.
- ✓ Draw funds as needed (10-year draw period)
- ✓ Variable rates (often lower initially)
- ✓ Pay interest only on amount borrowed
- ✓ Reuse credit as you pay it down
Ongoing expenses, home improvements over time, emergency fund, or when you’re unsure of exact amount needed.
Home Equity Loan
A second mortgage with a fixed rate and term. Receive your funds in one lump sum with predictable monthly payments.
- ✓ One-time lump sum disbursement
- ✓ Fixed interest rate for life of loan
- ✓ Predictable monthly payments
- ✓ Know exact payoff date from day one
Large one-time expenses, debt consolidation, major renovation with known costs, or when you want payment predictability.
Smart Ways to Use Your Home Equity
Your equity is a powerful financial tool. Here are the most common—and smartest—ways Texas homeowners put it to work.
Your home equity is a powerful financial asset
Home Renovations
Upgrade your kitchen, add a bathroom, or build that addition. Improvements can increase your home’s value.
ROI: Up to 80%Debt Consolidation
Replace high-interest credit cards (18-25% APR) with a low-rate equity loan. One payment, massive savings.
Save $500+/monthEducation Expenses
Fund college tuition or private school. Often lower rates than student loans with potential tax advantages.
Rates 50% lowerEmergency Fund
A HELOC gives you access to funds when you need them—without paying interest until you actually use it.
Pay $0 until drawnInvestment Property
Use equity from your primary home as a down payment on rental property. Build wealth through real estate.
Fund 20% downMedical Expenses
Cover unexpected medical bills or planned procedures. Lower rates than medical financing options.
Better than 0% cardsImportant Texas Home Equity Rules
Texas has unique homestead protections that affect equity loans. As your Texas mortgage expert, Adam ensures you understand these rules and maximize your benefits within them.
Max LTV
Min. Wait
Limit
Rescind
Not Sure Which Equity Option is Right?
We’ll help you compare HELOC vs. Home Equity Loan and find the best fit for your goals—no upfront credit check required.
LET’S TALKWhy Adam Bartling & Team for Equity Loans?
As a direct lender with Movement Mortgage, we offer competitive rates, fast closings, and an education-first approach that puts your needs first.
Direct Lender Advantage
Powered by Movement Mortgage—competitive rates with faster, more reliable closings.
Veteran-Owned
Retired Army Captain with the integrity and service commitment you deserve.
Texas Equity Experts
We know Texas’s unique equity rules inside and out. No surprises, just smooth closings.
Education-First
We explain HELOC vs. equity loan pros/cons so you make the right choice.
No Hidden Fees
Transparent pricing with no surprises. Many equity products have low or no closing costs.
Fast Closings
We’re ready to close as soon as legally allowed—often in just 21 days.
Equity Loan FAQs
Common questions about HELOCs and home equity loans in Texas.
How much equity can I borrow in Texas?
Texas law limits total borrowing (including your first mortgage) to 80% of your home’s value. If your home is worth $400,000 and you owe $250,000, you could potentially access up to $70,000 in equity.
What’s the difference between HELOC and cash-out refinance?
A cash-out refi replaces your entire mortgage with a new, larger one. A HELOC/equity loan is a second loan that leaves your first mortgage intact—often better if you have a low rate on your current mortgage. Learn about refinancing →
How long does it take to get a HELOC in Texas?
Texas law requires a minimum 12-day waiting period. With that requirement, most HELOCs close in 21-30 days from application to funding.
Can I get a HELOC with less-than-perfect credit?
Yes! While 700+ scores get the best rates, we have options for credit scores as low as 620. Let’s discuss your specific situation—there may be more options than you think.
What are the closing costs for a HELOC?
Many HELOCs have low or no closing costs. Home equity loans typically have costs similar to a refinance (2-5% of loan amount). We’ll show you all fees upfront—no surprises.
Can I pay off my HELOC early?
Most HELOCs and home equity loans have no prepayment penalty. You can pay off your balance whenever you want without extra fees.
🌟 What Our Clients Say
Texas homeowners who unlocked their equity with Adam Bartling & Team.
“We had $85,000 in credit card debt at 22% interest. Adam helped us get a home equity loan at 8.5% and consolidated everything. Our monthly payments dropped by $600 AND we’ll be debt-free years sooner. Life-changing!”
Robert & Maria S.
Katy, TX
Home Equity Loan • Debt Consolidation“I wanted flexibility for a kitchen remodel that might grow in scope. Adam recommended a HELOC so I could draw funds as needed. The process was smooth, and having that credit line available gave me peace of mind throughout the project.”
Christine L.
Sugar Land, TX
HELOC • Home Renovation“As a veteran, I appreciated Adam’s military background and straightforward approach. He explained the Texas equity rules clearly and found us a great rate. Used the funds as a down payment on a rental property—now building wealth!”
Master Sergeant (Ret.) Kevin W.
San Antonio, TX
HELOC • Investment Property
Financial freedom for generations
