At Texas Mortgage Tree, we realize that many people are unsure exactly what the differences between standard mortgages and home equity loans are. Simply put, equity loans are given against the market value of a home minus the money still owed on the original loan. For example, a home worth one million dollars with half a million dollars left to repay on its note has half a million dollars of equity accrued. Throughout Texas, home mortgage loan lenders also offer equity products. The process to obtain an equity product is very similar to the procedure for obtaining a normal home loan though the Texas mortgage rates will differ slightly. You will also find that across Texas home equity loan rates are about the same as regular mortgage rates. We are proud to offer online equity loan comparisons in the same convenient manner we are able to offer other mortgage comparisons.

Texas home equity loan rates have a few specialized terms, as does the rest of the banking industry. Interest rates are the percentage of the loan institutions require you to add to your loan amount as a fee for using the money you have borrowed. Often these percentages are based on a rate that the biggest borrowers receive known as the Prime Rate. Points are amounts (generally analogous to one percent of the total loan amount) used by the lender to describe certain fees. The Annual Percentage Rate, or APR, is the combination of all points, fees and interest combined and expressed as a total interest rate.

More equity related terms are defined in our website's Mortgage Term Glossary. Also, our Texas mortgage home loan applicant checklist can also be used by people seeking equity lines of credit.