Texas Home Equity Loans

If you own a home and are considering taking out a loan for home improvements, college or other expenses, a home equity loan could be a good option. Home equity loans allow homeowners to use the equity they have built up in their homes to borrow money. Equity is the difference between what a home is worth and what is left to pay on the mortgage. It is this value that is used as collateral for Texas home equity loans.

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Texas home equity loans are second mortgages. As such, there are some clear distinctions between these loans and first mortgages. For instance, the term of a home equity loan is generally shorter than that of a first mortgage. While it is common for home loans to have repayment periods as long as 30 years, some home equity loans have terms as short as five years.

Various Types of Texas Home Equity Loans

When shopping for Texas home equity loans, it is important to know your options. There are two types of home equity debt you are sure to come across. These are home equity loans and home equity lines of credit. The difference lies in how the money is distributed. Equity loans are lump-sum payments paid off over a set period of time. They function just as traditional mortgages do. Equity lines of credit are more like credit cards. Borrowers have access to the loan amount for the life of the loan, but can take out the money as they need it.

Which type of home equity option is the better choice? That depends on your needs. At Southern Lending Corporation, our mortgage representatives can help you navigate the process of finding the most affordable home equity loan. To learn more about loan options or to apply, simply contact us at 1-866-614-2700 ext 100 or send us an email.