Texas now joins the rest of the nation in allowing homeowners to use the equity in their homes to apply for loans. Consumers need to know the ins and outs of this law and how it will impact them.
Special terminology goes along with the new law.
A list of new terms has been provided by the Federal Reserve Bank of Dallas. Protections and Provisions Lines of credit prohibited. Open-end home equity loans, which function as a revolving line of credit, are not allowed. No additional collateral. No collateral other than the homestead can secure an equity loan.