Your home equity or the stored value is what you offer to the
credit organizations or banks in return for home equity loans. How much your
home equity is, solely depends upon two factors:
- All the
payments you’ve made on the house
- Increase in the market value of your home since the mortgage began
To estimate the current amount you are eligible for the home
equity loan, you must find:
- The current
market value of your home
- Remaining
mortgage balance of the house
Calculate the difference between the two, and this represents
your home’s potential equity. There are a few special rules applied for home equity loans in Texas. Most of them were enacted to protect consumers’
interest, as discussed below:
- The total
mortgage debt should never be higher than 80% of the home’s fair market value.
This is called a debt total limit, and the maximum cash equity you can avail
for the house is 80% of the overall market value.
- Texas law
permits only one home equity loan at a time to be issued for the house. Any outstanding
balance must be paid off before you can apply for a new home equity loan.
- In a single
calendar year, you are allowed to receive home equity loan only once. This
means one year, one loan!
In Texas, many reliable mortgage lenders provide the lowest charges
on home equity loans. So, if you are seeking help from someone for your loan
approval, then search online. The leading mortgage lenders are now available
online!
