Texas Home Equity Loan Calculator
Calculate how much you can borrow against your home equity in Texas
Texas Calculator
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Updated for 2025 with real Texas rates, brackets, and regulations
Texas has unique constitutional protections for homeowners — Article XVI, Section 50 of the Texas Constitution limits ALL home equity lending to 80% loan-to-value (LTV), stricter than any other state. This means you can never borrow more than 80% of your home's value across all liens combined. Texas also requires a 12-day cooling-off period for home equity loans, caps closing costs at 3% for equity products, and prohibits equity stripping. While these laws protect homeowners, they also limit borrowing flexibility. This calculator shows your available equity under Texas's constitutional rules.
Calculate Your TX Tax
Home Equity
$90,000
Current LTV
73.5%
Max Borrowable (80% LTV)
$22,000
HELOC Rate
8.50%
Monthly Payment
$156/mo
TX 80% LTV Cap
Constitutional Limit
Equity as % of Value
26.5%
Breakdown
Insight
You have $90,000 in home equity and can borrow up to $22,000. CRITICAL TX LAW: The Texas Constitution (Article XVI, §50) limits ALL home equity lending to 80% LTV — this is stricter than most states. This means you cannot borrow more than 80% of your home's value across all liens combined. Texas also requires a 12-day cooling-off period for home equity loans and prohibits equity stripping. TX HELOCs convert to fixed-rate at end of draw period. No state income tax means the federal mortgage interest deduction is your only tax benefit.
AI Explanation
What This Means
Based on default inputs, the Texas Home Equity Loan Calculator shows a home equity of $90,000. Key figures: Current LTV: 73.5%, Max Borrowable (80% LTV): $22,000, HELOC Rate: 8.50%, Monthly Payment: $156/mo, TX 80% LTV Cap: Constitutional Limit, Equity as % of Value: 26.5%.
Key Insights
You have $90,000 in home equity and can borrow up to $22,000. CRITICAL TX LAW: The Texas Constitution (Article XVI, §50) limits ALL home equity lending to 80% LTV — this is stricter than most states. This means you cannot borrow more than 80% of your home's value across all liens combined. Texas also requires a 12-day cooling-off period for home equity loans and prohibits equity stripping. TX HELOCs convert to fixed-rate at end of draw period. No state income tax means the federal mortgage interest deduction is your only tax benefit.
What You Can Do
Enter your actual figures in the calculator above for a personalized breakdown. Consider consulting a tax professional for comprehensive planning, especially for complex situations involving multiple income sources or deductions.
Keep In Mind
This calculator provides estimates based on 2026 rates. Actual tax liability may vary based on credits, exemptions, and other factors not captured here. This is for educational purposes only and should not be considered tax advice.
How the Texas Home Equity Loan Calculator Works
The Texas Home Equity Loan Calculator uses 2026 tax rates, brackets, and deductions specific to Texas to provide you with an accurate estimate of your tax obligations. Unlike generic federal-only calculators, this tool accounts for the unique tax structure that Texas residents face.
Formula
Available Equity = (Home Value × 80%) - Mortgage Balance. TX Constitutional limit: 80% max combined LTV. Closing costs capped at 3%.Simply enter your financial details above, and the calculator instantly computes your results using the latest available data. All calculations happen directly in your browser — your personal information is never sent to any server or stored anywhere.
Why Use a Texas-Specific Calculator?
State-Specific Rates
Uses real 2026 Texas tax brackets, rates, and thresholds — not generic national averages that miss state-level nuances.
Local Programs & Exemptions
Factors in Texas-specific programs, exemptions, and deductions that national calculators simply don't account for.
Instant & Private
All calculations run locally in your browser. No account required, no data stored, no waiting for results.
AI-Powered Explanations
Get a plain-English breakdown of your results with actionable insights you can actually use for financial planning.
What's Included
Constitutional Limit Calculator
Shows your max borrowable amount under Texas 80% LTV constitutional cap.
Consumer Protection Details
Explains the 12-day cooling-off period and 3% fee cap unique to Texas.
HELOC vs Loan Comparison
Compare HELOC and home equity loan options under Texas-specific rules.
Frequently Asked Questions
Why is the Texas 80% LTV limit special?
It is written into the Texas Constitution (Article XVI, §50), not just a lending guideline. This means no lender can offer you more than 80% LTV on home equity products — period. It protects homeowners from over-leveraging but limits borrowing flexibility compared to other states where 90-95% LTV is available.
What is the 12-day cooling-off period?
Texas law requires a mandatory 12-day waiting period between application and closing for home equity loans. This gives you time to reconsider. The loan also cannot close until 12 days after the lender provides the required disclosures. This is a unique Texas consumer protection.
Are closing costs really capped at 3%?
Yes. The Texas Constitution limits total fees and charges on home equity loans to 3% of the loan amount. This is more restrictive than federal limits and saves Texas borrowers thousands compared to other states where fees can reach 5-6%.
Can I get a HELOC in Texas?
Yes, but with restrictions. Texas HELOCs must convert to a fixed-rate installment loan at the end of the draw period (no indefinite interest-only payment). The 80% LTV cap and 3% fee cap still apply. You can only have one home equity loan on your property at a time.
How does high property tax affect my equity?
Texas property taxes don't directly affect equity, but they do affect home values. High taxes can slow appreciation in some markets, meaning you build equity more slowly. However, the $100,000 homestead exemption and ability to protest assessments help protect your effective equity.
Important Information for Texas Residents
Tax laws in Texas can change annually. This calculator is updated regularly to reflect the latest 2026 rates and regulations, but you should always verify important financial decisions with a qualified Texas tax professional or CPA.
This tool is designed for informational and educational purposes. While we strive for accuracy using official Texas Department of Taxation data, the results should be used as estimates for planning purposes only. Your actual tax liability may differ based on credits, special circumstances, and legislative changes that occur after our last update.
For filing deadlines, payment schedules, and official forms, visit the Texas Department of Taxation and Finance website. If you have complex tax situations involving multiple states, business income, or significant investment gains, professional guidance is recommended.
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