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For What It's Worth

By Gwen Wright
Thursday, October 26, 2017

 Equity  Home  Vote

Home Equity Changes Up for a Vote!


Home Equity Changes Up for a Vote!

Did you know the ability to access the equity in your home is governed by the Texas Constitution? Home equity loans in Texas were first allowed in 1997 and very few changes have been made since then. Proposition 2 is an amendment to the Texas Constitution regarding home equity loans, and Texans have the power to make significant changes this November.

Key components of PROP 2:

  • Redefines what is and is not included in the calculation of the cap on fees associated with a home equity loan. WIN for borrowers who want a small dollar home equity loan.
  • Allows for an existing home equity loan to be refinanced into a conventional loan. WIN for borrowers who want to refinance their purchase money mortgage or home improvement loan and their home equity loan into a single note.
  • Increases the HELOC equity provision from 50% to 80%, bringing consistency with other home equity loans. WIN for the borrowers with a home equity line of credit by increasing the amount they are eligible to borrow at any time.
  • Allows all property owners to acquire home equity loans without removing their agricultural valuation. WIN for borrowers who want a home equity loan on property with an ag exemption without having to carve out the homestead or give up the ag exemption.

In a democracy, there is nothing more fundamental than having the right to vote, and Texans will have the opportunity to go to the polls to vote on seven proposed amendments to the Texas Constitution.

Early voting is October 23rd through November 3rd

Election Day is November 7th

Click here for Explanatory Statements on Constitutional Amendments

Gwen Wright

Gwen joined the First National Bank team in July of 2016. She currently serves as Vice President of Loan Operations. Gwen’s knowledge base is in the lending area having 25 years of experience in various loan operational positions throughout her banking career. She enjoys traveling, fishing with her husband and spending time with family.
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