HELOC Rates in Austin, TX: Your 2026 Guide to Home Equity Lines of Credit

Austin's real estate market has been one of the most dynamic in the country over the past decade. If you're a homeowner sitting on significant equity — and many Austin homeowners are — a [home equity line of credit](/blog/best-heloc-lenders-2026) (HELOC) can be a smart way to access that value without selling your home.

This guide breaks down everything you need to know about HELOC rates in the Austin metro area, including which lenders offer the best deals, how local market conditions affect your options, and the Texas-specific rules you absolutely need to understand before applying.

Current HELOC Rates in Austin, TX

As of early 2026, HELOC rates in Austin typically range from 7.50% to 9.75% APR for borrowers with strong credit (720+). The exact rate you'll get depends on your credit score, loan-to-value (LTV) ratio, and which lender you choose.

Here's a general breakdown of what Austin borrowers are seeing:

Excellent credit (760+): 7.50% – 8.25% APR
Good credit (700–759): 8.25% – 9.00% APR
Fair credit (660–699): 9.00% – 10.50% APR
Below 660: Limited options; rates above 10.50% or denial likely

Most HELOCs carry variable rates tied to the prime rate. With the Federal Reserve holding rates relatively steady through late 2025 and into 2026, Austin HELOC rates have stabilized compared to the sharp increases seen in 2023–2024.

Some local credit unions offer introductory rates as low as 6.49% for the first 6–12 months, which can be a significant savings if you plan to draw funds early.

Austin Home Values and Equity Landscape

Understanding your equity position is the first step in evaluating whether a HELOC makes sense.

Median Home Values

Austin's median home price sits around $475,000 as of early 2026. That's down from the 2022 peak of roughly $550,000 but still well above the pre-pandemic median of $330,000. If you bought your home before 2021, you're likely sitting on substantial equity even after the market correction.

Equity Position by Purchase Year

Purchased before 2018: Most homeowners have 50%+ equity
Purchased 2018–2020: Typically 30–45% equity
Purchased 2021–2022: 10–25% equity (some may be close to breakeven depending on neighborhood)
Purchased 2023+: Limited equity; HELOC may not be viable yet

Neighborhood Variations

Equity varies dramatically across the Austin metro:

Central Austin (78704, 78731): Values have held up well. Median around $650,000–$900,000.
Round Rock / Cedar Park: Median around $400,000–$450,000. Strong equity for pre-2021 buyers.
Pflugerville / Hutto: More affordable at $350,000–$400,000. Some 2022 buyers still underwater.
Dripping Springs / Bee Cave: Higher-end market, $550,000–$750,000. Solid equity positions.

Best HELOC Lenders in Austin

Austin has a healthy mix of national banks, local credit unions, and online lenders competing for HELOC business. Here are the standout options:

1. UFCU (University Federal Credit Union)

UFCU is one of Austin's largest credit unions and consistently offers competitive HELOC rates. They're known for low fees and local decision-making. Current rates start around 7.75% APR for well-qualified borrowers, with no annual fee and minimal closing costs.

Best for: Austin homeowners who want a local lender with in-person service.

2. Amplify Credit Union

Another strong local option, Amplify offers HELOCs with no closing costs on lines up to $250,000. Their rates are competitive with national lenders, typically starting around 7.99% APR. They also offer a rate discount for setting up autopay from an Amplify checking account.

Best for: Borrowers who want to minimize upfront costs.

3. Frost Bank

Frost is a Texas-based regional bank with deep roots in Austin. They offer HELOCs with competitive rates and strong customer service. Frost typically starts at 8.00% APR and offers relationship discounts for existing customers.

Best for: Existing Frost customers and those who value relationship banking.

4. Figure (Online Lender)

Figure offers a fully digital HELOC process with approval in as little as five minutes. Their rates start around 7.50% APR, and they charge a fixed origination fee (typically 0–4.99% depending on your state and credit profile). The trade-off is less personalized service.

Best for: Tech-savvy borrowers who want speed and convenience.

5. Chase Bank

Chase offers HELOCs with rates starting around 8.25% APR in the Austin market. They waive the annual fee for the first year and offer rate discounts for Chase Private Client members. Their extensive ATM and branch network in Austin is a plus.

Best for: Existing Chase customers who can leverage relationship discounts.

Texas-Specific HELOC Rules You Must Know

Texas has some of the most restrictive home equity lending laws in the country. These rules are embedded in the Texas Constitution (Article XVI, Section 50), and they directly affect how your HELOC works.

The 80% LTV Cap

In Texas, you cannot borrow more than 80% of your home's appraised value across all mortgage debt, including your primary mortgage and the HELOC combined. This is a hard constitutional limit — no lender can override it.

Example: If your home is worth $500,000 and you owe $300,000 on your mortgage, the maximum HELOC you could get is $100,000 ($500,000 × 80% = $400,000 – $300,000 = $100,000).

The 12-Day Cooling-Off Period

Texas law requires a 12-day waiting period between your [HELOC application](/blog/heloc-application-process-step-by-step) and closing. You cannot waive this period. It's designed to protect borrowers from making impulsive decisions.

One Equity Loan at a Time

Texas homeowners can only have one home equity loan or HELOC at a time. If you already have a home equity loan, you'll need to pay it off or refinance it before opening a HELOC. You can refinance a home equity loan into a HELOC, but the 80% LTV cap still applies.

No Mandatory Lump-Sum Advances

Lenders cannot require you to take a minimum draw at closing (though many will set a minimum line amount of $4,000–$10,000).

Homestead Protection

Your primary residence in Texas has strong homestead protections. A HELOC is one of the few ways a lender can place a lien on your homestead property. Understanding this is important — if you default, the lender can foreclose, even on your primary home.

Tax Implications for Austin HELOC Borrowers

Federal Tax Deduction

Under the Tax Cuts and Jobs Act (still in effect for 2026), you can deduct HELOC interest only if you use the funds to "buy, build, or substantially improve" your home. Using a HELOC for debt consolidation, college tuition, or other purposes means the interest is not deductible.

The deduction limit applies to combined mortgage debt up to $750,000 ($375,000 for married filing separately).

Texas State Tax Advantage

Texas has no [state income tax](/blog/states-with-no-income-tax-investing), so there's no state-level deduction to worry about — but it also means you won't get a double tax benefit like homeowners in states with income taxes. The upside is that your overall tax burden is lower, which may make a HELOC more attractive for cash flow purposes.

Property Tax Considerations

Austin's property tax rates run approximately 1.8% to 2.2% of assessed value, depending on your school district and other taxing entities. If you use your HELOC for home improvements, your property could be reassessed at a higher value, potentially increasing your property taxes. Keep this in mind when budgeting.

How Austin's Market Conditions Affect Your HELOC

Interest Rate Environment

The Federal Reserve's rate decisions directly impact HELOC rates since most are variable and tied to the prime rate. As of early 2026, the prime rate sits at 8.50%, and most Austin HELOCs are priced at prime plus a margin (typically 0% to +2.00% for strong borrowers).

If the Fed cuts rates in 2026 — which many economists expect — your HELOC rate would decrease proportionally. This makes a variable-rate HELOC potentially attractive if you believe rates will decline.

Austin's Economic Fundamentals

Austin's economy remains strong, driven by:

Tech sector: Despite some layoffs in 2023–2024, Austin remains a major tech hub with Apple, Tesla, Google, Meta, and Oracle maintaining significant operations.
Population growth: Austin continues to attract new residents, supporting housing demand.
Job market: Unemployment in the Austin-Round Rock MSA hovers around 3.5%, below the national average.

These factors support stable home values, which protects your equity position and makes lenders more willing to offer competitive HELOC rates.

Inventory and Demand

Austin's housing inventory has normalized after years of extreme scarcity. Current months of supply sit around 4–5 months, closer to a balanced market. This stabilization means home values are unlikely to spike or crash, giving lenders confidence in your collateral.

When a HELOC Makes Sense in Austin

A HELOC is generally a good fit for Austin homeowners who:

Have a home [renovation](/blog/bathroom-renovation-cost-guide) planned. Austin's older neighborhoods (like those in Central Austin, South Austin, or older parts of Round Rock) often need updates. A HELOC can fund kitchen remodels, ADU construction (increasingly popular in Austin), or energy-efficient upgrades.
Want a flexible emergency fund. You only pay interest on what you draw, making a HELOC a cost-effective safety net.
Are consolidating high-interest debt. Even at 8–9%, a HELOC is cheaper than most credit cards. Just remember that the interest won't be tax-deductible if used for this purpose.
Need to bridge a financial gap. Whether it's covering a down payment on a second property or funding a business venture, a HELOC provides flexible access to capital.

When to Think Twice

If you bought in 2021–2022 at peak prices: Your equity may be thin, and the 80% LTV cap in Texas could limit your borrowing power significantly.
If your income is unstable: Variable rates mean your payments could increase. Make sure you can handle higher payments if rates rise.
If you're planning to sell soon: Closing costs and the 12-day waiting period may not be worth it for short-term needs.

How to Get the Best HELOC Rate in Austin

Check your credit score. Aim for 740+ to get the best rates. If you're below that, consider spending a few months improving your score before applying.
Shop at least three lenders. Compare national banks, local credit unions (UFCU, Amplify), and online lenders. Rate differences of 0.50–1.00% are common.
Ask about rate discounts. Many lenders offer 0.25–0.50% off for autopay enrollment or maintaining a checking account with them.
Negotiate fees. Closing costs, annual fees, and early termination fees vary widely. Some credit unions waive them entirely.
Consider the introductory rate. A low intro rate (6–12 months) can save you money if you plan to draw funds immediately.
Time your application. If Fed rate cuts are expected, you may benefit from a variable-rate HELOC. If you want certainty, look for lenders that offer a fixed-rate conversion option.

Frequently Asked Questions

How long does it take to get a HELOC in Austin?

Plan for 3–6 weeks from application to funding. Texas's mandatory 12-day cooling-off period adds time compared to other states. Online lenders like Figure can be faster on the front end, but the Texas waiting period still applies.

Can I get a HELOC on an investment property in Austin?

Yes, but the terms are different. Investment property HELOCs typically have higher rates (1–2% more), lower LTV limits (often 70–75%), and stricter qualification requirements. Texas's 80% LTV constitutional cap applies only to homestead (primary residence) properties. Investment properties follow standard lender guidelines.

What's the minimum credit score for a HELOC in Austin?

Most lenders require a minimum score of 620–660. However, to get competitive rates (below 9%), you'll generally need a score of 700 or higher. Credit unions may be more flexible than national banks.

Can I convert my Austin HELOC to a fixed rate?

Some lenders offer a fixed-rate conversion option that lets you lock in a portion or all of your balance at a fixed rate. This can be valuable if you're worried about rising rates. UFCU, Frost, and Chase all offer some form of rate-lock option — ask about the terms before you apply.

What happens if my Austin home loses value after I open a HELOC?

If your home's value drops, your lender may reduce your credit line or freeze it entirely. Under Texas law, the combined LTV cannot exceed 80%, so a significant value drop could trigger a reduction. You'd still owe whatever you've already drawn, but you wouldn't be able to borrow more until the LTV ratio improves.

The Bottom Line

Austin homeowners have solid HELOC options in 2026, with rates that are competitive by national standards and a strong local lending market. The key is understanding Texas's unique home equity laws — especially the 80% LTV cap and 12-day waiting period — and shopping multiple lenders to find the best rate.

If you've built up meaningful equity (most pre-2021 buyers have), a HELOC can be a powerful financial tool for home improvements, debt consolidation, or simply having a flexible credit line available. Just make sure the math works for your specific situation, and don't borrow more than you can comfortably repay.

HonestCasa helps homeowners compare HELOC rates and find the best lenders in their area. [Compare Austin [HELOC rates today](/blog/best-heloc-rates-2026).](/compare/heloc/austin)

[Using a HELOC for an [Investment Property Down Payment](/blog/investment-property-down-payment): Smart Strategy or Risky Move?](/blog/heloc-for-investment-property-down-payment)
[[Home [Equity Explained](/blog/home-equity-explained)](/blog/what-is-home-equity): What It Is and How to Build It](/blog/home-equity-explained)
Investment Property Down Payment: Your Real Options in 2026

Heloc Rates Austin

Key Takeaways