If you're planning a costly home improvement project, consider getting a Texas home equity loan. This loan acts like a second mortgage and the payment plan is set up similarly. You get your money in one lump sum and you can spend it however you like; you simply pay it back in monthly installments over the term period you've selected, which is usually 10 or 15 years.

The upside to this loan is that the interest rate is fixed. The downside is that an appraisal of the home is usually needed and sometimes lenders require you to pay closing costs, like with a Texas home mortgage loan. Here are a few tips to help get you started.

1. Make your local bank your first stop when getting a home equity loan in Texas. Consider lenders you've already established a rapport with.

2. Apply online for Texas home equity lending. This really speeds up the process.

3. Check out the going Texas home equity loan rate. This knowledge will assist you in negotiations when applying for your loan.

Action Steps
The best contacts and resources to help you get it done

Find a lender of Texas home equity loans in your neighborhood

It's very convenient to get your loan from an institution you already bank with. If you've already put your trust in your bank or credit union, you can be sure their loan officers will give you the best service.

I recommend: Inquire about the home equity loans available from Franklin Bank, which has 55 locations across the state. Check out the home equity products Southwest Bank has to offer; they have nine branches in the Dallas-Fort Worth area.

Apply online for a Texas home equity loan

Many lenders offer online applications to simplify the process. If you're short on time, fill out your information online and submit it to the bank for approval.

I recommend: Submit an application in under 15 minutes using the online system at Wachovia. You can also apply online at Bank of America.

Determine the usual Texas home equity rates

In order to know if you're getting a good rate, you should look at a few banks' websites to find out what their lowest rates are so you can negotiate the rate you're offered.

I recommend: Find out the rates of various Texas lenders at Mortgage101. Fill out a simple form at MortgageLoan.com to compare rates for home equity loans in Texas.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A Texas home equity line of credit may better suit your needs. The way a Texas home equity line works is similar to a credit card: It carries a revolving balance and you only use the money as you need it, as opposed to getting a lump sum as you would with a home equity loan.