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Texas HELOC Calculator

Your Texas limit under the 80% rule, payments, the 2% fee cap and the earliest closing date.

Step 1 of 4: Your home

Count every loan on the home. Texas caps them all, the new line included, at 80%.

In Texas, a HELOC on your homestead plus everything you owe on the home may reach at most 80% of the home's value. Texas also requires each draw to be at least $4,000, caps most fees at 2% and makes you wait 12 days before closing. Enter your numbers to see your limit, payments and earliest closing date.

  • Texas Constitution rules
  • Fee cap in dollars
  • Earliest closing date

Your Texas HELOC breakdown

Texas limit: 80% of $400,000 is $320,000. Minus the $220,000 you owe, that leaves a line of up to $100,000. The cap applies to the full line, not only what you draw, and it is fixed on the day the line opens. At an 85% cap, which Bank of America and PenFed publish for homes outside Texas, the same home would allow $120,000, or $20,000 more. This is an estimate, not an offer: the lender sets the value with its own appraisal and decides on your credit and income. General information about Texas law, not legal advice.

Payments on $60,000 at 8%: with the whole line drawn, interest only is $400 a month ($60,000 × 8% ÷ 12) for 10 years. Texas requires every payment in the draw period to cover at least the interest that built up. After that, $502 a month for 20 years, in substantially equal payments as Texas requires (loan × r ÷ (1 − (1 + r)−n), with r = 8% ÷ 12 and n = 240). Interest over all 30 years comes to $108,447 if the rate never changes. HELOC rates usually move with the prime rate.

Fee cap: fees the 2% rule covers may total at most $1,200, 2% of a $60,000 line. The rule measures 2% of the "original principal amount" and does not say, for a line of credit, whether that is the full line or what is advanced at closing. Measured on a first draw of $20,000, it would be $400. Either way, fees may be charged only when the line is opened, never on a draw.

First draw: $20,000 meets the Texas minimum of $4,000 for each draw.

Closing date: applied on October 12, 2026, so day 1 of the 12-day wait is October 13, 2026 and day 12 is October 24, 2026. If the lender gives you the Texas notice later, count from that day instead. Earliest closing: October 24, 2026. You also need the final itemized list of fees at least one business day before closing (Sundays and federal legal holidays, on their actual dates, do not count), and after closing you have 3 days to cancel without penalty.

Your home is the collateral. If you do not repay, the lender may foreclose and sell it; in Texas only with a court order. Paying off credit cards or a car loan with the line turns that debt into debt secured by your home.

What this does not include

  • Fees outside the 2% cap, such as a third-party appraisal, a survey and the state base premium for the lender's title insurance.
  • Rate changes. The payments keep the rate at 8% for all 30 years.
  • Your lender's own limits, such as a minimum line, a minimum credit score or a cap below 80%.
  • Property taxes, insurance and your mortgage payment. The payments above are for the line only.

How to use this Texas HELOC calculator

  1. Home: what the home is worth and every loan it secures.
  2. Line: the amount, your offer's rate (we start with an example) and the term.
  3. Timing: your first draw, the day you apply and, if any, when your last Texas equity loan closed.

Texas HELOC rules that change your plan

These rules come from article XVI, section 50 of the Texas Constitution and the interpretations the Texas Finance Commission and Credit Union Commission publish in chapter 153 of title 7 of the Texas Administrative Code. They apply to a homestead, the home you live in.

RuleWhat it means for youWhere
80% of the home's valueThe full line, not just what you draw, plus everything owed on the home may not exceed 80% of its fair market value on the day the line opens.sec. 50(a)(6)(B), (t)(5); 7 TAC 153.86
$4,000 minimum drawEvery draw must be at least $4,000, the first and each later one.sec. 50(t)(2)
No cardsNo credit or debit card, and no checks you did not ask for. You draw by asking the lender, by phone or online transfer, or with checks you request.sec. 50(t)(3); 7 TAC 153.84
2% fee capMost fees the lender requires may total at most 2% of the loan amount. They are charged only when the line opens, never on a draw.sec. 50(a)(6)(E), (t)(4); 7 TAC 153.5
12-day waitClosing comes on or after the 12th calendar day after you apply or receive the Texas notice, whichever is later. The next day is day 1; weekends count.sec. 50(a)(6)(M)(i); 7 TAC 153.12
Final fee listThe itemized fees reach you at least one business day before closing (Sundays and federal legal holidays, on their actual dates, do not count), unless you agree in writing to an emergency or good-cause exception.sec. 50(a)(6)(M)(ii); 7 TAC 153.13
One at a timeOnly one Texas home equity loan or line may be secured by the home at a time. An existing one has to be paid off when the new line closes.sec. 50(a)(6)(K)
Once a yearA new one may not close before the first anniversary of the last one on the same home, even if that loan is paid off, unless you ask under oath for an earlier closing in a declared state of emergency.sec. 50(a)(6)(M)(iii); 7 TAC 153.14
Where you signOnly at the permanent office of the lender, an attorney or a title company, never at your home. A power of attorney for the closing is signed there too.sec. 50(a)(6)(N); 7 TAC 153.15
3 days to cancelYou and your spouse may cancel within 3 days after closing without penalty.sec. 50(a)(6)(Q)(viii); 7 TAC 153.25
PaymentsTexas law requires none until two months after the first draw. In the draw period each payment covers at least the interest; after it, payments are substantially equal.sec. 50(t)(8); 7 TAC 153.88
No one-sided changesThe lender may not change the terms on its own, or make you repay early because the home's value drops.sec. 50(t)(7), (a)(6)(J)

How the 80% limit works on a line

The rule's own example (7 TAC 153.3): on a home worth $100,000, all debt may reach $80,000; with $30,000 already owed, the new loan can be up to $50,000. For a line, the whole credit limit counts, drawn or not. It is set on the closing date and never changes, so a later rise in the home's value does not make the line bigger.

Other loans the home secures, such as a home improvement loan, count toward the 80%. A refinance that gave you cash is generally made under the same section (sec. 50(e)): it counts as your one equity loan and starts the one-year clock.

The rules cover the homestead only. Until 2018, a homestead designated for agricultural use for property tax purposes could not secure a home equity loan unless it was used mainly to produce milk; the 2017 amendment (S.J.R. 60) removed that condition. A line on a rental or other property that is not your homestead follows the lender's ordinary terms: for Texas non-homestead property, Bank of America says there is no minimum draw requirement.

What the 2% fee cap covers

The 2017 amendment lowered the cap from 3% to 2% for loans made from January 1, 2018. Here is how chapter 153 sorts the charges (7 TAC 153.5):

Counts toward 2%Does not count
Charges to originate the loan, including attorney fees for preparing documentsInterest, including daily (per diem) interest, and bona fide discount points
Credit report, flood zone determination, tax certificate, inspection, appraisal managementThe fee paid to a third-party appraiser and a survey by a licensed surveyor
Recording the loan documentsThe state base premium for the lender's title insurance, with endorsements
Insurance the lender requires on the loan, apart from that title premiumA title examination report that costs less than that base premium; optional charges you choose, homeowner's insurance, escrow deposits, and later charges such as late fees

Lenders that cover their own costs do not count them against you either: charges a lender absorbs are outside the cap. Several lenders below say they charge no annual fee or no origination fee in Texas.

Lenders that publish Texas HELOC terms

Of the lenders on our HELOC terms page, these mention Texas in their published HELOC terms. They are listed A-Z, not ranked. Each line is the lender's own words from a page saved in October 2026; PenFed's comes from a copy of its page opened in a browser, because its site blocks automated downloads.

  • Bank of America
    • Texas Homestead Property is subject to the requirements of Article 16, Section 50(a)(6) of the Texas Constitution. Early Closure Fee does not apply. The minimum advance is $4,000. Maximum CLTV is typically 80% and maximum LTV is typically 80%. source
  • Fifth Third Bank
    • The term is 30 years, consisting of a 10-year draw period with interest-only payments (in Texas, minimum payments during the draw period must at least cover accrued interest) followed by a 20-year repayment period with principal + interest source
    • Annual fee of $65 waived for one year. In Texas, no ongoing annual or maintenance fees apply. source
    • The minimum Fifth Third Equity Flexline (R) (HELOC) draw requirement for Texas is $4,000. source
    • Lock in a fixed rate on all or part of your existing balance for a $95 fee 1 (In Texas, no fee applies) source
  • Huntington Bank
    • HELOCs subject to Section 50(a)(6) of the Texas Constitution: Maximum CLTV cannot exceed 80%. Annual fee does not apply. Minimum advance is $4,000. source
  • PenFed Credit Union
    • In Texas, the maximum CLTV available is 80% on owner occupied properties. source
    • Additional restrictions apply in Texas, so please ask a representative for details. source
  • PNC Bank
    • Choice Home Equity Lines of Credit and Home Equity Loans in Texas can only be secured by a primary residence designated as homestead property and cannot exceed 80% combined loan to value of that property. source
    • Annual Fee: The annual fee is $75. There is no annual fee for Texas accounts. source
    • There are no reimbursable fees for Texas accounts. source
    • There is no Origination Fee for property located in Texas. source
    • Minimum draw in Texas for a Choice Home Equity Line of Credit is $4,000. source
  • Regions Bank
    • When homes located in Texas are pledged, the total indebtedness on the home may not exceed 80% of the fair market value of the home. source
    • If you close your line within 24 months from the opening date, any third-party closing costs paid by Regions will be charged back to your line (third-party closing costs will not be charged back to the line for properties in Texas). source
    • No minimum draw amount is required (except for Texas properties where a minimum draw of $4,000 is required). source
  • Truist
    • A home equity line from Truist can be secured by an owner-occupied, single-family, primary residence, second home or condominium located in AL, AR, CA, DC, FL, GA, IN, KY, MD, MS, NC, NJ, OH, PA, SC, TN, TX, VA, WV source
    • The maximum APR is 16% for properties located in NC and 18% for properties located in AR, CA, FL, GA, TN, AL, SC, VA, MD, DC, WV, IN, KY, NJ, OH, PA, or TX. source

These lenders' pages say their HELOC is not offered in Texas or leave Texas off their list of states:

  • BMO
    • BMO does not offer Home Equity Products in Texas source
  • Chase (its pages conflict: its HELOC calculator page still describes Texas terms)
    • Our HELOC is available for homes in the U.S, except Texas. source
  • Citizens (Texas is not on its list of states)
    • Citizens provides HELOCs in the following states: AL, AR, CT, DC, DE, FL, GA, IA, IL, IN, KY, MA, MD, ME, MI, MN, NC, NE, NH, NJ, NY, OH, OK, PA, RI, SC, SD, TN, VA or VT. source
  • Figure (variable-rate line)
    • This product is not available in: MA, VA, MS, IL, WI, VT, DC, OK, TX, NY, CO, WY, WV, SC. source
  • Navy Federal Credit Union
    • HELOC loans are not available in Texas. source

Risks to weigh

  • Your home secures the line. The Texas notice warns that the lender may foreclose and sell it if you do not repay; in Texas that takes a court order. Card or car debt paid with the line becomes debt secured by your home.
  • Variable rates. Huntington's lines, for example, follow the prime rate, so payments rise when it rises.
  • No quick top-up. The line cannot grow, and a new equity loan waits a year from the last one.

Next step

To see which lenders' published rules your numbers meet, use the HELOC requirements check. For a year-by-year payment schedule and the payment if the rate rises, use the HELOC calculator with Texas selected.

Texas HELOC questions people ask

Are HELOCs illegal in Texas?

No. Texas added home equity lines of credit to section 50 of its constitution in 2003, with extra rules for a homestead: the line plus everything owed on the home may not exceed 80% of its value, each draw must be at least $4,000, and you cannot draw with a credit or debit card. Some lenders, such as BMO and Navy Federal, say they do not offer HELOCs in Texas.

Source: Texas Constitution, art. XVI, sec. 50

How much equity can I borrow in Texas?

Up to 80% of your home's fair market value, minus everything you already owe on it. The cap covers the full credit line, not only what you draw, and is set on the day the line opens. A $400,000 home with a $220,000 mortgage allows a line of up to $100,000. The lender may set a lower limit.

Sources: Texas Constitution, art. XVI, sec. 50, 7 TAC 153.86

How much would a $50,000 HELOC cost per month?

At an example rate of 8%, about $333 a month while you pay interest only on the full $50,000, then about $418 a month over 20 years of repayment. Texas requires every payment in the draw period to cover at least the interest. HELOC rates are usually variable, so both payments change when the rate does.

Source: 7 TAC 153.88

What is the current HELOC rate in Texas?

It depends on the lender, your credit and how much of the home you borrow against. Huntington listed 6.89% to 13.08% APR for Texas lines of $25,000 and up, and 10.14% to 16.33% for lines of $10,000 to $24,999, effective September 28, 2026. Most HELOC rates follow the prime rate, which was 7% on October 2, 2026.

Sources: Huntington: HELOC rates by state, FRED: Bank prime loan rate

How much interest can you legally charge in Texas?

For a Texas home equity loan or line, the constitution sets no number: it lets the lender charge any fixed or variable rate that a state statute authorizes. Lenders publish their own ceilings. Truist, for example, says the APR on its home equity lines can go no higher than 18% for Texas homes. Other kinds of loans follow other rules.

Sources: Texas Constitution, art. XVI, sec. 50, Truist: HELOC

What happens after 10 years on a HELOC?

On many lines the draw period ends: you can no longer borrow, and you start repaying principal. In Texas, the payments after the draw period must be substantially equal. On a $50,000 line at 8%, the payment goes from about $333 a month, interest only, to about $418 a month over 20 years.

Source: 7 TAC 153.88

How do I work out how much equity I have in my house?

Subtract everything you owe on the home from what it is worth today. A $400,000 home with a $220,000 mortgage has $180,000 in equity. In Texas you can borrow against only part of it, because all loans on the home together may reach 80% of its value: here, a line of up to $100,000.

Source: Texas Constitution, art. XVI, sec. 50

What is a HELOC?

A home equity line of credit is a loan secured by your home that works like a credit line: you draw money when you need it, repay it and borrow again during the draw period, then pay off what is left. The Texas Constitution defines it as an account where the owner requests advances, repays money and reborrows money, and it adds limits such as $4,000 minimum draws.

Source: Texas Constitution, art. XVI, sec. 50

Sources

  1. Texas Constitution, Article XVI, Section 50 - 80% limit, $4,000 draws, 2% fee cap, waiting periods, closing location, rescission (last amended November 7, 2017)
  2. 7 TAC 153.3: Limitation on equity loan amount - Texas Secretary of State
  3. 7 TAC 153.5: Two percent fee limitation
  4. 7 TAC 153.12: Closing date - 12th calendar day
  5. 7 TAC 153.13: Preclosing disclosures
  6. 7 TAC 153.14: One year prohibition
  7. 7 TAC 153.15: Location of closing
  8. 7 TAC 153.25: Right of rescission
  9. 7 TAC 153.84: Devices and methods to obtain a HELOC advance
  10. 7 TAC 153.86: Maximum principal amount under a HELOC
  11. 7 TAC 153.88: Repayment terms of a HELOC
  12. Texas Legislature: S.J.R. 60 (2017) bill analysis - 2% fee cap, agricultural homesteads
  13. Bank of America: Home equity - generally up to 85%
  14. PenFed: Home Equity Line of Credit - 85% in all other states, 80% in Texas
  15. Huntington: Home equity lines of credit - rates by state, September 28, 2026
  16. Truist: Home equity line of credit
  17. FRED: Bank prime loan rate (DPRIME) - 7% on October 2, 2026

Last reviewed October 12, 2026. See how we calculate. This page is general information, not financial, tax or legal advice.

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