Tap into your home's value without refinancing your mortgage. With a HELOC from Texana Bank, you get flexible, revolving credit — use what you need, when you need it, and only pay interest on what you borrow.
A HELOC gives you flexible, revolving access to your home equity — without replacing your existing mortgage.
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Only Pay What You Use
Unlike a cash-out refinance, a HELOC is revolving credit. Draw funds as needed and only pay interest on the amount borrowed — not the full credit line.
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Keep Your Current Rate
Already locked in a great mortgage rate? A HELOC sits as a second lien, so your first mortgage stays untouched — no new rate, no new terms.
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Revolving Credit Line
During your draw period, borrow, repay, and borrow again — like a credit card, but secured by your home at much lower rates.
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Up to 85% CLTV
Access a significant portion of your home's equity. Most HELOC programs allow combined loan-to-value ratios up to 85%, giving you meaningful borrowing power.
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Lower Closing Costs
HELOC closing costs are typically much lower than a full cash-out refinance.
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Potential Tax Benefits
Interest paid on a HELOC may be tax-deductible when used for home improvements. Consult your tax advisor for details on your situation.
Eligibility
Who Qualifies for a HELOC?
HELOCs are available to homeowners with sufficient equity and good financial standing.
Equity & Property Requirements
Minimum 15–20% equity in your home (after existing mortgage)
Primary residence, second home, or investment property
Property must be in acceptable condition (appraisal may be required)
Single-family, condo, townhome, or multi-unit (up to 4 units)
How Your Credit Line Is Calculated
Your available credit line is based on your home's appraised value minus your existing mortgage balance, up to the maximum CLTV allowed by the program.
Borrower Requirements
Credit Score
680+ preferred (some programs available at 620+)
Income
Stable, verifiable income and employment
DTI
Generally 43% or lower (some flexibility with strong compensating factors)
Property Tax & Insurance
Current on all property obligations
Title
Clear title with no outstanding liens or judgments
How It Works
How a HELOC Works
A HELOC provides two distinct phases: a draw period where you access funds freely, and a repayment period where you pay back what you borrowed.
Draw period: borrow as you need it
Borrow, repay, and borrow again as needed
Repayment period: you pay down the balance; your written terms show how long it lasts
Variable rate tied to Prime Rate (fixed-rate options available)
Access funds via checks, debit card, or online transfer
Home Value: $400,000 Current Mortgage: $250,000 Available Equity (at 85% CLTV): up to $90,000
You only pay interest on what you actually draw — not the full credit line.
HELOC Costs
Understanding HELOC Fees & Costs
HELOCs typically have lower upfront costs than a full refinance. Here's what to expect.
Fee Type
Amount
What it is
Application Fee
Ask for written terms
Charged by some lenders when you apply
Appraisal Fee
Ask for written terms
Values the home that secures the line
Title Search
Ask for written terms
Required to verify clear title
Recording Fees
Ask for written terms
County recording charges
Annual Fee
Ask for written terms
Charged yearly by some lenders
Lower Cost Than a Full Refinance
Setting up a HELOC usually costs far less than a cash-out refinance, because your first mortgage stays in place. Your written terms list each fee to open the line.
Comparison
HELOC vs. Cash-Out Refinance
Both let you access home equity, but they work very differently. Here's how they compare.
Feature
HELOC
Cash-Out Refinance
How It Works
Second lien — keeps first mortgage
Replaces existing mortgage
Access Type
Revolving credit line
One-time lump sum
Interest Rate
Variable (Prime-based)
Fixed rate
Payment Type
Set by your written terms
Set by your written terms
Closing Costs
Usually lower
Usually higher
Max LTV/CLTV
Up to 85% CLTV
Up to 80% LTV (90% VA)
Your First Mortgage
Stays in place
Replaced with new loan
Reusable
✓ Yes — revolving
✗ No — one-time
Best For
Ongoing/flexible needs
Large one-time need
Tax Deductible*
Home improvement use
Home improvement use
*Interest may be tax-deductible when funds are used for home improvements. Consult your tax advisor.
HELOC Calculator
Estimate Your HELOC Payment
See your estimated monthly payment during the draw period (interest-only) and repayment period (principal + interest).
Estimates only. Actual rates and payments will vary based on credit, income, and property. Variable rates may change over time. Subject to credit approval.
The Process
Your HELOC Journey
From application to funding, here's what to expect.
1
Apply & Pre-Qualify
1 Day
Complete a quick application with Texana Bank. We'll run a soft credit check (no impact on your score), review your equity position, and give you a preliminary credit line amount.
2
Appraisal & Verification
1–2 Weeks
We'll order an appraisal (if required), verify your income and assets, and finalize your credit line amount. Many HELOCs can proceed with a desktop appraisal for faster processing.
3
Underwriting & Approval
3–7 Days
Your file moves through underwriting for final approval. Our team handles the details — you just respond to any document requests promptly.
4
Closing & Access
1 Day
Sign your closing documents and your HELOC is activated. On a primary residence, you can draw after the three-business-day right-to-cancel period ends, by check, debit card, or online transfer. Your credit line is ready to use.
Frequently Asked Questions
HELOC FAQs
Answers to the most common questions about HELOCs, eligibility, costs, and how they compare to other equity options.
No. Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has absolutely no impact on your credit score. You can check your rate, explore HELOC options, and get pre-qualified without any effect on your credit. A hard inquiry only occurs later if you formally move forward with a full application.
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. It lets you borrow against your home's equity up to a set limit, repay it, and borrow again during the draw period — similar to how a credit card works, but with your home as collateral and typically much lower interest rates.
Most lenders allow you to borrow up to 80–85% of your home's value, minus what you owe on your first mortgage. For example, if your home is worth $400,000 and you owe $250,000, you might qualify for a HELOC up to $90,000 (at 85% combined loan-to-value).
A home equity loan gives you a lump sum with fixed monthly payments, while a HELOC is a revolving credit line you can draw from as needed. HELOCs typically have variable rates; home equity loans have fixed rates. Choose a HELOC for flexibility or a home equity loan for predictability.
Most HELOCs have variable interest rates tied to the Prime Rate. This means your rate — and payment — can change over time. Some lenders, including Texana Bank, offer fixed-rate options or the ability to lock portions of your balance at a fixed rate for added predictability.
A HELOC has a draw period, when you can borrow, repay, and borrow again up to your credit limit, then a repayment period. Your written terms show how long each lasts and how your payment is figured. You can also make principal payments to free up more available credit.
After the draw period, you enter the repayment period. You can no longer make new draws, and you pay down the balance. Your written terms show how long the repayment period lasts and how the payment is figured.
Yes, there are no restrictions on how you use HELOC funds. Common uses include home improvements, debt consolidation, education expenses, medical bills, investment opportunities, or as an emergency fund. However, interest is only tax-deductible when funds are used for home improvements.
HELOC closing costs are typically much lower than a full refinance. Costs may include an appraisal fee, title search, and recording fees. Ask for written terms: your banker gives you the exact fees to open the line before you apply.
Most HELOCs close in 2–4 weeks from application to funding. The timeline depends on appraisal requirements, title search, and document verification. Some programs with desktop appraisals can close even faster.
Opening a HELOC adds a new account to your credit report, which may temporarily lower your score by a few points. However, having a HELOC can actually help your credit long-term by increasing your available credit and lowering your overall credit utilization ratio — as long as you use it responsibly.
Yes. Texana Bank does not charge prepayment penalties on HELOCs. You can pay down or pay off your balance at any time. Some lenders charge early termination fees if you close the line within the first 2–3 years, so always confirm terms before closing.
If your home's value decreases significantly, your lender may freeze or reduce your available credit line. This doesn't affect what you've already borrowed, but it may limit future draws. Maintaining an equity cushion helps protect against this scenario.
Yes, though requirements are typically stricter. Investment property HELOCs may require higher credit scores (700+), lower CLTV ratios (70–75%), and higher interest rates than primary residence HELOCs. Texana Bank offers HELOC programs for both primary and investment properties.
HELOC interest may be tax-deductible if the funds are used to “buy, build, or substantially improve” the home securing the loan, per IRS rules (Tax Cuts and Jobs Act of 2017). Interest on funds used for other purposes (debt consolidation, education, etc.) is generally not deductible. Consult your tax advisor.
A HELOC is a second lien that keeps your first mortgage intact, offers revolving credit, and typically has variable rates with lower closing costs. A cash-out refinance replaces your entire mortgage with a new one, provides a lump sum, and offers a fixed rate but with higher closing costs. Choose a HELOC if you want flexibility without disturbing your current mortgage.
Most HELOC programs require a minimum credit score of 680, though some programs are available with scores as low as 620. Higher credit scores typically qualify for better rates and higher credit lines. Texana Bank considers your full financial profile, not just your score.
It's possible but uncommon. Most lenders prefer a single second lien. If you already have a home equity loan, you may be able to refinance it into a HELOC, or vice versa. Your total combined debt cannot exceed the maximum CLTV allowed.
If you need a one-time lump sum, a cash-out refinance or home equity loan might be more appropriate — especially if you want a fixed rate. However, a HELOC still works for one-time needs, and the line stays open for future needs; your written terms list any annual or draw fees.
Once your HELOC is activated, you can access funds through several methods: writing checks linked to your HELOC account, using a HELOC debit card, making online transfers to your bank account, or visiting a branch. On a primary residence, you can draw after the three-business-day right-to-cancel period ends.
Reviews
What Homeowners Say About Texana Bank
Real reviews from real borrowers. See why homeowners trust Texana Bank Mortgage.
Texana Bank helped me with the purchase of my third home, and honestly, the experience was the smoothest of all three home purchases. I only worked with Lynette, but she was friendly, helpful, and courteous at all times. She was extremely patient with me, and she took time to answer all my questions. Even more impressive is that the bank worked with me through a challenging employment situation. Never once was I made to feel bad about asking questions, and Lynette's responses were lightning fast. This was one of the best experiences I have ever had with any company, bar none. I highly recommend Texana Bank to anyone.
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Mikayla Irwin
★★★★★
Lynette Heck is the best to work with. No matter what we needed, she was on top of it and thinking of things way before we needed it! We really appreciate everything she did for us!
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Mark Sherrard
★★★★★
Overdue but thanks again Adam, I appreciate you going above and beyond to make sure my family got our dream home. 10 stars.
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Carson Romero
★★★★★
My experience with Lynette was the best and easiest experience it could’ve possibly been when being a first time home buyer. She’s very kind, communicative, reliable, and so much more! It made the whole process that much less stressful and overwhelming. So blessed to have had her on my side!
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Zane Atkins
★★★★★
Parker McMahan has helped us with 3 mortgages and a refi in part few years. Always great service-always honest advice. Texana will be my “go to” for mortgage advice and activity from here on. They are also great in the area of VA home loans.
G
Gary McDay
★★★★★
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
K
Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
A
Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
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Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
D
Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
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Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
Ready to Access Your Home's Equity?
Whether you need funds for renovations, debt consolidation, or a financial safety net, our HELOC specialists are ready to help.
