HELOC/Home Equity

Home Is Where the Heart Money Is.

Rates As Low As 3.74% APR* for up to 60 months

A PrimeWay home equity loan allows you to take advantage of the value you’ve added to your home. You’ve spent countless hours turning your house into a home over the years. You can use a home equity loan for any financial need or life event, including:

  • Consolidate all of your bills
  • Pay off high-interest credit card debt
  • Add an addition to your home to accommodate a growing family
  • Complete a home improvement to a kitchen or bathroom
  • Pay for a child’s college education
  • Pay for a wedding
  • Help pay for elderly care

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Want to have a line of credit vs. a loan? Check out our Home Equity Line of Credit (HELOC) product.

What is a Home Equity Loan?

A home equity loan uses the equity in your home as collateral to borrow money. Equity is the remaining value after you subtract your outstanding mortgage balance from the home's current appraised value.

When considering you for a home equity loan, lenders look at both the equity in your home and the loan-to-value ratio (LTV). The LTV is another way of expressing how much you still owe on your mortgage.

Calculating Loan-to Value Ratio (LTV)

To calculate the LTV ratio, the current mortgage loan balance is divided by the current appraised value of your home. Here‘s the basic loan-to-value ratio formula:

Current mortgage balance ÷ Current appraised value = LTV

If you have low equity in your home, your LTV will be high; lenders are reluctant to loan when there is a high LTV.

If you are adding a home equity loan to your current mortgage, lenders also look at your combined loan-to-value ratio (CLTV).

Calculating Combined Loan-to-Value Ratio (CLTV)

When you are considering a home equity loan, you would add the amount you want to borrow to your current mortgage balance, and this will give you your combined loan balance. To calculate your combined loan-to-value ratio (CLTV), you divide your combined loan balance by your home's current appraised value.

In Texas, the maximum CLTV allowed is 80%, so lenders require your CLTV to be 80% or less for a home equity loan.

Here's the combined loan-to-value formula:

Current combined loan balance ÷ Current appraised value = CLTV

For example, let's say your home has a current appraised value of $300,000 and your current outstanding mortgage balance is $120,000. You want to take out a $75,000 home equity loan.

Below are the calculations to determine if adding a home equity loan of $75,000 to your existing mortgage would fall within the maximum allowed CLTV of 80%:

Current Equity in Home: 
Current Appraised Value:$300,000
Outstanding mortgage:($120,000)
Current Home Equity:$180,000
Loan-to-Value Ratio (LTV): 
Outstanding Mortgage/Current Value:$120,000/$300,000
Current Loan-to-Value Ratio (LTV):0.40 or 40%
Combined Loan-to-Value Ratio (CLTV): 
Based on adding $75,000 home equity loan to current mortgage balance. 
Combined Loan Amt/Current Value:$195,000/$300,000
Combined Loan-to-Value Ratio (CLTV):0.65 or 65%

In the example above, based on the equity in the home, a home equity loan of $75,000 added to the existing mortgage loan balance of $120,000 would have a CLTV of 65%, which is within the maximum allowable CLTV of 80%.

Apply Online Today or request more information to have a PrimeWay Representative contact you.

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You can also visit us at one of our convenient retail center locations or call us at (713) 799-6200.

*APR = Annual Percentage Rate. Rates as low as 3.74% APR for home equity loans with terms of up to 60 months. Appraisal costs are the responsibility of the borrower(s). PrimeWay home equity loans are available only in Texas. Maximum 80% CLTV. Certain credit criteria and restrictions apply.
Rates and terms are based on a combination of your earned credit score, the term you select, collateral, down payments, loan-to-value (LTV) position and other normal lending criteria. Acceptable property hazard insurance is required, as well as Flood Insurance if the property is in a designated flood zone.
You should consult your tax advisor regarding your possible tax implications. Rates are subject to change without notice.