Question 1

How much HELOC can I borrow based on my home equity?

Accepted Answer

Most US lenders allow a Combined Loan-to-Value (CLTV) ratio of 80% to 85% of your home's appraised market value, minus your remaining first mortgage balance. In Texas, Section 50(a)(6) constitutional rules cap total home equity borrowing at 80% CLTV.

Question 2

What is the difference between the HELOC draw period and repayment period?

Accepted Answer

During the initial 10-year HELOC draw period, you can borrow funds and typically make interest-only monthly payments. Once the 15-to-20-year repayment period begins, the line closes to new borrowing and you pay principal plus interest.

Question 3

How much can I save by appealing my county property tax assessment?

Accepted Answer

If comparable neighborhood home sales prove your county tax assessor overvalued your property by $30,000 to $50,000, filing a property tax appeal can save $500 to $1,500+ per year depending on your state's effective property tax rate.

South Dakota (SD) HELOC Borrowing Limit & Property Tax Calculator