PrimeWay Federal Credit Union
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Home Equity Loan

Use the Equity in Your Home to Layout the Plan for Your Next Life Event

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

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 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), which is the difference between the current appraised value of your home and what you currently owe on your mortgage divided by the current appraised value of your home.  Here‘s the basic loan-to-value ratio formula:
Current loan 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.
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.
Lenders allow a specific combined loan-to-value ratio (CLTV) for home equity loans, which will be the total of your current mortgage plus the new home equity loan divided by your home's current appraised value. 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 $400,000 and your current outstanding mortgage balance is $200,000. The amount of equity you have in your home is $200,000.
Here's how to calculate your current LTV and the maximum home equity loan amount available based on a lender that allows a CLTV of 80%:
Current Appraised Value:$400,000
Outstanding mortgage:($200,000)
Home Equity:$200,000
Home Equity/Current Value:$200,000/$400,000
Current Loan-to-Value Ratio:0.50 or 50%
Current Value x Max CLTV:$400,000 x 80%
Max Combined Loan Amount:$320,000
Outstanding Mortgage:($200,000)
Potential Loan Amount:$120,000

Lenders that offer a combined loan-to-value ratio of 80% would loan up to an additional $120,000 for the home equity loan in this example.

Apply Online Today or fill out the form to request more information from a PrimeWay Financial Services Representative.

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

Request More Information

*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.